Do Medigap Plans Offer Prescription Drug Coverage

Up until 2006, Medigap insurance policies offered prescription drug coverage. However, due to varying costs and restructuring of Medigap insurance, the government altered the way prescription drugs are covered in current Medigap policies. Now, if you want a Medigap plan that covers prescription drugs, you have to choose one of the plans that offer it.

Medicare Part D was created to replace the earlier structured policies concerning prescription drugs. If someone chose to carry the old policy, they could not sign up for the Medicare Part D. Those with Medigap insurance policies that included prescription drug coverage have the choice to take out the prescription drug coverage option from their current insurance policy and still keep all the other benefits intact. The premium should be adjusted accordingly.

There are 12 Medigap plans, labeled A through L. Of these plans offered before the 2006 changes took effect, only H, I and J offered prescription drug coverage. The three plans feature a deductible as well as coinsurance to cover 50 percent of the drug benefit. Each of the plans also had a payment cap for the drug benefit, with the J plan's cap set higher than either H plan or I plan. If you were enrolled in one of these three plans before 2006, you are eligible to keep it. Anyone enrolling in Medigap after 2006 cannot get prescription drug coverage through Medigap.

If you have a Medigap policy that includes drug coverage (obtained before 2006) you have several choices. You can keep the Medigap plan and decline to enroll in the Medicare Part D drug benefit. Another option is to drop your existing Medigap insurance plan and sign up for another Medigap plan that doesn't offer prescription drug coverage. Then you would be eligible to enroll in the Medicare Part D.

Many experts say that the Medicare Part D is superior coverage compared to the pre-2006 Medigap plans as the plans were somewhat limited. Be aware that there will likely be premium adjustments if you follow this course of action. Also, there are certain enrollment periods for the Medicare Part D prescription drug benefit, so do not drop your existing coverage until you have confirmed that you are appropriately enrolled in the new plan.

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Medicap insurance is available to fill any of the gaps in your Medicare Plan coverage. While a number of insurance companies provide Medigap insurance coverage, their offerings and premiums vary from company to company. Carefully research and evaluate an insurance company before agreeing to purchase Medigap insurance.

Medigap policies are regulated by the state and federal government, but policies are sold by private insurance companies.

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Medigap insurance is designed to fill in the gaps of health coverage where Medicare falls short. While Medigap is heavily regulated by state and federal laws, the Medigap insurance policies are sold through private insurance companies. There are several different ratings that apply to Medigap policies and determine how much premiums cost through the various insurance agencies across the country.

Before you fully commit to signing up for a particular Medigap policy, it pays to know about the different Medigap insurance ratings. For those seniors seeking additional medical coverage that supplements Medicare, Medigap is a good choice. However, the way Medigap is structured appeals to a wide variety of applicants. Once you learn about Medigap ratings, you can choose the best plan for you.

AARP Medigap insurance is a Medicare supplemental insurance that supplements the amounts that Medicare doesn't cover. Private insurance companies sell the health insurance policies and they are primarily designed for senior citizens dependent on Medicare. These policies are regulated by state and Federal laws to protect the policyholder.

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