Medicare Supplement Insurance (Medigap)
"They're kind of like trailers that you hitch to your car. They don't determine where you can go or which doctor you can see. They don't have network restrictions. They just add carrying capacity. But, those Medigap trailers won't get very far without something to haul them around. That 'something' is Original Medicare. Therefore, in order to understand the true value of Medigap Plans, you must first understand the powerful legal benefits of Original Medicare." - Brad Child
"They're kind of like trailers that you hitch to your car. They don't determine where you can go or which doctor you can see. They don't have network restrictions. They just add carrying capacity. But, those Medigap trailers won't get very far without something to haul them around. That 'something' is Original Medicare. Therefore, in order to understand the true value of Medigap Plans, you must first understand the powerful legal benefits of Original Medicare." - Brad Child
Original Medicare is the key to having coverage in all 50 States and US Territories. Original Medicare is a Federal health plan and is accepted by most doctors and hospitals across the country. When you enroll in Original Medicare it becomes your primary health benefit plan. It is very important to understand your coverage choices within the Medicare system before you decide how you will receive your Medicare benefits, because the choice you make can shift financial responsibility. I encourage you to familiarize yourself with www.medicare.gov and the very important handbook about Medicare coverage's titled Medicare & You. Your coverage choices are summarized on page 4 & 5 of Medicare & You. Unfortunately, the publishers at the Centers for Medicare & Medicaid Services have decided to make your choices more opaque by reducing the information provided in the summary as compared with the 2017 guide book. It is vital that you read Section 4, where the differences between Original Medicare and Advantage Plans are provided in more detail. Most importantly, if you have assets to protect, own your home, own retirement accounts, or have other assets, and are considering an Advantage Plan carefully read page 65 (2024), Pay particular attention to the implications stated in the first bullet point. The network agreements can leave you with out any coverage. If you haven’t received your copy of Medicare & You, I recommend calling 800-MEDICARE (800-633-4227) and requesting that they mail you a paper copy.
Medigap Plans are additional insurance that you may add to Original Medicare. They do not modify Original Medicare in any way, nor do they have any "network" restrictions. Medigap plans simply provide additional coverage that fill some, or more, of the gaps in Original Medicare's coverage structure. Importantly, with a Medigap Plan, Original Medicare remains your primary coverage. Because Medigap plans are designed to coordinate with Original Medicare, a federal health plan, and are offered by private insurance companies, they are regulated by both federal authorities and state insurance departments. Medigap Plans are currently standardized into twelve plans, labeled: A, B, C, D, F, F-high deductible, G, G-high deductible, K, L, M, and N. People new to Medicare after January 1, 2020 can not purchase a Plan F. However, if you already own a Plan F it remains a guarantee renewable policy and owners may continue to renew their policies indefinitely. See note here: www.medicare.gov/index.php/supplements-other-insurance/how-to-compare-medigap-policies
The Cavanagh Agency and/or Brad Child are licensed with many Medigap insurance companies. All the companies we license with (excluding Blue Cross and Blue Shield affiliated companies) must have a current A- or better claims-paying rating. Ratings are issued by A. M. Best Rating Services, Inc. (www.ambest.com) This enables us to shop with you for the best rates available from only the top-rated companies. In addition to shopping currently filed rates, we go deeper and examine each company's rate filings for persons that are older than your current age. In this way, we can see if an insurance company with the lowest rates today also has lower attained-age rated filings versus its competitors. For details as to why this additional rate analysis could be very important to you in the future, please call for a free consultation.
The Cavanagh Agency and/or Brad Child are licensed with many Medigap insurance companies. All the companies we license with (excluding Blue Cross and Blue Shield affiliated companies) must have a current A- or better claims-paying rating. Ratings are issued by A. M. Best Rating Services, Inc. (www.ambest.com) This enables us to shop with you for the best rates available from only the top-rated companies. In addition to shopping currently filed rates, we go deeper and examine each company's rate filings for persons that are older than your current age. In this way, we can see if an insurance company with the lowest rates today also has lower attained-age rated filings versus its competitors. For details as to why this additional rate analysis could be very important to you in the future, please call for a free consultation.
There are far more details regarding Medigap Plans than makes sense to explain on this website. In one phone call or meeting, I can help you better understand the information provided by government sources, including this consumer guide to choosing a Medigap policy which was developed by the Centers of Medicare & Medicaid Services (CMS), working jointly with the National Association of Insurance Commissioners (NAIC): www.medicare.gov/Pubs/pdf/02110-Medicare-Medigap.guide.pdf