AARP Medicare Supplement insurance (also called Medigap) is meant to help people with some health care costs that Medicare Part A and Part B do not cover, such as deductibles, co-payment and coinsurance; it also covers further services, such as health care, when one takes a trip outside the United States.
AARP (American Association of Retired Persons) is a nonprofit organization that assists people aged 50 and more with enhancing their lives’ quality, by promoting adequate and reasonably priced medical care. It is the largest organization for people over 50 in the United States and has agencies in all states.
What is Medicare?
Medicare is the medical insurance for people aged 65 and over, for people under 65 with particular disabilities and for all those with ESRD (End-Stage Renal Disease). Each part of Medicare covers certain services:
- Part A – hospital insurance
- Part B – medical insurance
- Part D – medical prescription drug coverage
What is AARP Medicare Supplement and what does it Cover?
Medigap is private health insurance that supplements the “gaps” in Medicare Part A and Part B. When you have both Medigap and Original Medicare, each will pay its share for covered medical treatment costs. Every such supplement policy follows state and Federal laws designed to protect the insured party and, no matter where you buy it from, it provides the same basic benefits. However, not all types of the AARP Medicare Supplement insurance policies may be available in every state.
What you must know when you buy the AARP Medicare Supplement.
- You must have both Part A and B Medicare.
- You can keep your doctor and hospital.
- You can apply for Medigap even if you have a Medicare Advantage Plan, but you must leave the latter before the Medigap policy begins.
- In addition to the monthly payment for your Medicare cover, you must provide to your insurance company a monthly payment for your Medigap policy.
- One Medigap policy covers a single person and thus, if both you and your spouse want AARP Medicare Supplement insurance, you will have separate policies.
- Medigap policies can be purchased from the insurance companies licensed to sell them in each state.
- Plans E, H, I and Plan J are no longer among the existing offer, but if you have already purchased one, you can keep it.
- A standardized Medigap policy is renewable and, even if you have medical issues, it cannot be canceled by the insurance company as long as you pay the monthly cost.
- If you want to drop the Medigap policy, all you have to do is call your insurance company.
What does AARP Medicare Supplement Insurance Not cover?
- Long-term care, hearing aids, eyeglasses, dental care and private-duty nursing.
- Part C and Part D.
- Veterans’ benefits.
- Employer or union plans.
- Indian Health Service.
When is it best to purchase a Medigap policy?
It is best to buy it during the open enrollment-period, namely in six months beginning with the first day of the month in which you are enrolled in Part B. During this period, an insurance company cannot refuse to sell you any Medigap policy due to prior health issues.
What are the benefits of this supplement?
- Up to one year of additional hospitalization after Medicare benefits are used.
- Co-payments for Part B.
- First three pints of blood yearly.
- Part A co-payment for hospice care.
- Skilled nursing facility coinsurance.
- Deductibles for Part A and Part B.
- Excess charges not covered by Part B.
- Emergency care for foreign travel.
It is very important to have an adequate insurance coverage that guarantees proper medical care, in case you get ill or injured, and understanding the benefits of AARP Medicare Supplement will help you select a Plan according to your needs