What You Need to Know About Medicare Supplements in Minnesota
December 1, 2023 | Todd Lewison
When you turn 65 and start Medicare, there are several different ways to receive coverage. One of the coverage options is to supplement your original Medicare (Parts A/B) with a Medicare Supplement plan or Medigap policy. But what does that mean exactly? In this article, we’ll review what a Medicare supplement is, the coverage it provides and how these particular plans are unique in the state of Minnesota compared to the rest of the country.
What is a Medicare Supplement / Medigap Policy?
Medicare Supplement Insurance, also known as Medigap, is additional coverage available for purchase through private health insurance providers. To be eligible for a Medigap policy, you must already be enrolled in both Part A (Hospital Insurance) and Part B (Medical Insurance) of Original Medicare.
Review our comprehensive guide on Medicare Supplements
A Medicare Supplement plan can help cover your out-of-pocket expenses associated with Original Medicare. This is one of the main reasons individuals elect to have additional coverage. Although Original Medicare provides coverage for health services, it does not cover everything, and those deductibles and 20% co-insurance can add up quickly. Furthermore, with no cap on your costs or out-of-pocket-max, original Medicare alone can leave seniors in financial hardship when serious medical concerns and procedures arise.
Enrolling in a Medicare Supplement:
As explained by Medicare.gov, ‘You get a 6 month “Medigap Open Enrollment” period, which starts the first month you have Medicare Part B and you’re 65 or older. During this time, you can enroll in any Medigap policy and the insurance company can’t deny you coverage due to pre-existing health problems.’ After this period, you can apply for a Medicare Supplement, but if you do not pass medical underwriting, you may not be able to buy a Medigap policy, or in some states, it may cost more. This Medigap Open Enrollment Period is a one-time enrollment and it doesn’t repeat every year, like the Medicare Annual Enrollment Period.
Types of Medicare Medigap Policies:
Medigap policies are considered ‘standardized’. Meaning they offer the same basic benefits no matter which insurance company you buy the policy from. Ten types of Medigap plans are available in most states, which are named by letters: A-D, F, G, and K-N. The different letter is a way of distinguishing the associated costs and coverages provided by the policy. The only difference between plans with the same letter that various insurance companies sell is the premium or cost to have the plan.
Download the official Medicare and You Book for a full breakdown of Medicare Supplement Plans
Medicare Supplements in Minnesota:
However, in Minnesota, and Wisconsin, Medigap policies are standardized differently. Although in Minnesota, there are versions of Medigap Plans F, K, L, M, and N, most Medicare beneficiaries will choose the more popular Medicare Supplements – Basic, Extended Basic, or Medicare Supplement with Copayments (Plan N). Insurance companies can add more coverage to these types of Supplement plans, such as coverage for usual and customary fees, and non-Medicare preventive care.
Additionally, in Minnesota, Medicare Supplements are community-rated, meaning the premium price is the same for anyone enrolled and is not attained-age rated (meaning the price increases as you age). There are several differences between a Basic and Extended Basic Medicare Supplement plan; one of the most significant differences is the foreign travel coverage available with Extended Basic Supplement policies. There is much to familiarize yourself with when comparing Medicare Supplement plans – this is one of many reasons why working with an experienced Medicare professional can be helpful.
Read More: How to Know If You Need a Medigap Plan
As you navigate the complexities of Medicare, understanding your coverage options is essential to ensuring you have the right coverage for your unique needs. Medicare Supplement plans, or Medigap policies, can provide necessary coverage for the gaps in Original Medicare benefits. Keep in mind that in certain states, including Minnesota, these plans have unique features that set them apart from the rest of the nation. By exploring all of your Medicare choices, you can make an informed decision that best suits your health and financial goals in the years ahead.
If you have questions about enrolling in Medicare or Medicare Supplement plans, Twin City Underwriters can help. Contact us today to find out more about your Medicare options.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
