Health Insurance

What’s Medicare and what is Medigap

what is medicare

What is Medicare

The definition of Medicare and what exactly is Medigap? 

They are among the two most frequently asked questions we receive every day and we have decided to dedicate a whole page to answering the Medicare and Medigap and other trivia questions. 

what is medicare

Although the two programs, Medicare as well as Medigap are extremely detailed and complex, this page will give an knowledge of the differences between the two and determine whether either one applies to you. 

Medicare Part A and B are offered by the federal government. Part A is covered by forty quarters Medicare taxes when you are working.

Part B gets paid out monthly after you have enrolled in Medicare. Most people, in 2022 the cost of Part B is $170.10 However, it’s determined by your income. 

Medicare Part A and B on their own leave you with gaps in coverage. Therefore, making use of them on their own isn’t the best option.

So, what exactly is Medigap? 

A Medigap plan fills in the gaps of Part A as well as B. For the majority of people, the most effective Medigap option (Plan F) runs between $125 to $165 by the age of 65, based on where you are located in the country. 

Plan F will fill all areas of coverage that aren’t covered (Prescriptions aside this is Part D below) However, around here, we’re huge supporters of Plan G, the second-best plan. We’ll talk about that in the future.

  • Seniors and people 65 or older
  • Under 65s with specific disabilities
  • Aged people with End-Stage Renal Disease (ESRD) (permanent kidney disease that requires dialysis or the transplantation of a kidney)
  • Hospitals that provide inpatient care
  • Nursing facilities with skilled staff
  • Hospice
  • Home health care

In general, you do not pay a monthly cost for Part A insurance in the event that either you or your spouse have paid Medicare taxes during the time you worked. 

This is often referred to as the premium-free Part-A. If you’re not eligible to receive free premium Part A or Part A, you may be able to buy Part A and pay an additional fee.

  • Doctors’ services as well as other health professionals Hospital outpatient treatment and durable medical equipment in addition to home healthcare
  • Prevention services to keep you healthy and stop certain illnesses from becoming worse

The majority of people pay the monthly Part B cost. It is possible to buy coverage to fill the gaps within Original Medicare insurance. You can purchase the Medicare Supplement Insurance (Medigap) insurance policy from a private business.

  • All benefits and services are included in Part A and Part B.
  • Managed by the Medicare-approved insurance private companies
  • Usually, the plan includes Medicare insurance for prescription drugs (Part D) as part of the plan
  • The package may also include extra benefits and services at an additional cost.

This is a great piece on Medicare Advantage and Medigap and the best way to decide.

  • Aids in the payment of prescription medications for outpatients.
  • Managed by the Medicare-approved insurance private companies
  • It can help reduce the cost of prescription medications and also help you avoid rising costs in the future.

Be aware that if you have only a small amount of money and resources, you might be eligible to receive financial assistance for prescription and health care costs. 

what is medicare

Medicaid is a federal and state-run program that assists in the cost of medical care for people who have low incomes and limited resources. 

Medicaid could also cover certain services that are not provided under Medicare (like long-term support and services as well as personal services). 

Every state has its own guidelines regarding eligibility and how to apply for Medicaid. If you’re eligible to be eligible for Medicaid for your specific state then you automatically qualify for Extra Help to pay for your Medicare medication coverage (Part D). 

You may qualify to apply for Medicaid in the event that you have a limited income and fall into one of the following:

  • 65 or over
  • A child who isn’t 19 years old
  • Pregnant
  • Living with an impairment
  • A parent or adult caretaker for the child
  • An adult who does not have dependent children (in specific states)
  • An eligible immigrant

In some states many states, more parents and adults are now covered. If you’ve been denied previously You can apply again and could be eligible again.

If you enroll in, you will be able to get the health benefits you require, such as:

  • Doctor visits
  • Hospitalization
  • Supports and services that last for a long time
  • Preventive care includes vaccinations mammograms and colonoscopies and other necessary care
  • Maternity and prenatal treatment
  • Mental health care
  • Essential medication
  • Dental and vision care (for children)
  • It is recommended to apply for Medicaid If you or one of your family members requires medical treatment. If you’re unsure if you’re eligible, a certified state-specific caseworker can assess your situation. Contact your state’s local or regional Medicaid office to determine whether you’re eligible and apply. To get information about your state’s Medicaid program, visit

Dual Eligibility

A few people who are eligible for both Medicare, as well as Medicaid, are referred to as “dual qualified.” If you’re eligible for Medicare with all Medicaid coverage, the majority of your healthcare costs will likely be covered. 

You can obtain Medicare benefits by enrolling in Original Medicare or a Medicare Advantage Plan (like an HMO or PPO). 

If you’re enrolled in Medicare with full Medicaid, Medicare covers your Part D prescription drugs. Medicaid might still cover certain medications and other services that Medicare does not cover.

What exactly is Medigap

The Medigap policy is a type of private health insurance that can be used to augment Original Medicare. It helps to pay certain health care expenses which Original Medicare doesn’t cover (like copayments, coinsurance, or deductibles). 

They are “gaps” within Medicare coverage. If you are covered by Original Medicare and a Medigap policy, Medicare will pay its portion of Medicare-approved amounts for covered health costs. In turn, your Medigap policy will pay for the rest. 

It is a Medigap policy that differs from one that is a Medicare Advantage Plan (like an HMO or PPO) since these plans offer ways to obtain Medicare benefits, whereas Medigap policies are not. Medigap policy is only a supplement to the cost of your Original Medicare benefits. 

Take note that Medicare does not pay for any of the costs associated with the Medigap policy.

The majority of Medigap policies must comply with the federal and state laws that are that protect you and the policies must be clearly designated by the designation “Medicare Supplemental insurance.”

Medigap insurance companies in many states can only offer the “standardized” Medigap policy identified by the letters A to N. Each standard Medigap policy must provide the same benefits regardless of the insurance company that sells it. 

The cost is typically the only distinction between Medigap policies bearing the same letters sold by various insurance companies.

In the states of Massachusetts, Minnesota, and Wisconsin, Medigap policies are standardized in a different manner. In certain states, you might be able to purchase a different kind of Medigap policy known as Medicare SELECT. 

Medicare SELECT policies are standard plans that require you to visit certain providers and can be cheaper than other plans.

*Plan F can also be offered as a high-deductible insurance plan. If you choose a high-deductible plan F you are required to pay for Medicare-covered costs like copays and deductibles to $2,490 in 2022 before the policy will pay any amount.

*Plan N includes Basic Benefits following the co-payment of $20 for office visits, and emergencies in the emergency rooms.

*Plans K and L provide 100 percent of hospitalizations and preventive health Basic Benefits. Other Basic Benefits are covered at 50 percent for Plans K and K and 75 percent in Plan L.

When you reach your annual maximum, the policy pays 100% of Medicare cost of coinsurance, copayments as well as deductibles, for the remainder of the year. 

The annual out-of-pocket limits do not include charges from your service provider that exceed the amount that Medicare has approved (excess costs). The 2019 out-of-pocket limit will be $6,220 for Plan K or $3,110 for plan L.

  • Insurance companies that sell Medigap policies must offer Plan A accessible. Should they provide any alternative Medigap policy they should also offer Medigap Plan C or Plan F.
  • Not all kinds of Medigap policies are available in your particular state.
  • The plans D and G that are effective at and after the date of 1 June 2010 offer distinct benefits compared to the plans D or G purchased prior to June 1, 2010.
  • Plans E, H, I, and J are no longer offered however if already own one, you may typically keep the plan.