Understanding Medicare Supplements: What’s Worth Paying For

Frequently Asked Questions

Can I be dropped from my Medigap plan if I get sick?

No. As long as you continue to pay your premiums on time, your Medigap policy is “guaranteed renewable.” The insurance company cannot cancel your policy or raise your rates individually because you develop a health condition. Your rates will only rise along with everyone else in your rating group.

I missed my Open Enrollment Period. Is it too late to get a Medigap plan?

It is not necessarily too late, but it will be more difficult. You will likely have to answer health questions and go through medical underwriting. The insurance company can review your medical history and may charge you a higher premium or deny your application based on your health. Some states have specific annual “birthday rules” or other special enrollment periods that allow you to switch plans more easily, so it is worth checking your state’s specific regulations.

Does my Medigap plan cover prescription drugs?

No. Medigap plans sold to new enrollees since 2006 are not permitted to include prescription drug coverage. To get help with the costs of medications, you must enroll in a separate, standalone Medicare Part D Prescription Drug Plan. Federal tax information is at the IRS.

Why is Plan F no longer available to most people?

Due to a federal law change, Medigap plans that cover the Part B deductible (like Plan F) could no longer be sold to people newly eligible for Medicare on or after January 1, 2020. The idea was to ensure that seniors have at least some direct stake in their medical spending via the deductible. Plan G is now the most comprehensive option for new enrollees and is functionally identical to Plan F, except that you must pay the annual Part B deductible yourself.

Can I use my Medigap plan anywhere in the U.S.?

Yes. This is one of the greatest benefits of having a Medigap plan. You can see any doctor or use any hospital in the United States, as long as they accept Original Medicare. You are not restricted to a local network of providers, which gives you incredible freedom and flexibility, especially if you travel or have a second home.

Disclaimer: This article is for informational purposes and is not a substitute for professional financial or tax advice. Consult with a certified financial planner or tax professional for guidance on your specific situation.

For expert guidance on senior health and finance, visit National Institutes of Health (NIH), Centers for Medicare & Medicaid Services (CMS), Social Security Administration (SSA) and Consumer Financial Protection Bureau (CFPB).