Why Do You Need Medigap Insurance?

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   Jeffrey VanCleve

   Marketing Director, JLS Marketing Concepts LTD, Canton, OH

   Medigap Insurance, also called "Medicare Supplement" Insurance works with original Medicare (Parts A and B) to provide coverage for the "gaps" - the coinsurance and deductibles required to be paid by the Medicare beneficiary (consumer) under original Medicare. Although Medicare represents excellent insurance coverage, these "gaps" can be expensive for the consumer. For example, the Part A (hospitalization) deductible for 2015 is $1,260, and the Part B (doctors costs,etc.) is $147 plus 20% coinsurance. A Medigap policy insures these potentially large "gaps" with the payment of a known monthly premium. Medigap Insurance is optional for the consumer - there is no "requirement" to purchase it, although it is a good idea to get some Medigap coverage if staying with original Medicare. Alternatively, Medicare beneficiaries may select a Medicare Advantage Plan. Although there are costs and limitations in Medicare Advantage Plans, a beneficiary does not need, nor can they purchase Medigap Insurance under a Medicare Advantage Plan.

   Answered on November 17, 2014

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