Medigap is a name derived from the idea that this premium plan covers the gap between the expenses reimbursed by Medicare, and the total amount payable. Medigap, also known as “Medicare Supplement” refers to several different supplementary and private health insurance plans sold to Medicare beneficiaries in the United States. These health insurance plans provide a great coverage for medical expenses not covered or partially covered by Medicare. If you want to know how much Medigap Premiums will increase, you need to understand a bit more of information first.
The introduction of the Medicare Part D benefit is the main reason for Medigap to increase its costs. When Medicare started offering drug coverage for its beneficiaries, Medigap had to make a change in its policies to adjust to the change on the Medicare policy. Due to this addition in the Medicare policy, Medigap stopped selling drug coverage in their premiums, and as a result they had to increase its costs depending if the premium was acquired for an individual, or a couple.V
The answer to this question is based mostly on the type of coverage that you are receiving. Part A of Medicare is mostly paid by employers, so, if you are enrolled for Medicare Part A and you are a senior, you don’t have to pay an increase for this coverage. If you’re not a senior you could pay up to $461 if you have less than 29 quarters working.
Medicare Part B users with less than $85,000 for joint-filers won’t see a price increase in their Medigap Premium. The rest of individuals could see up to a 15% price increase on their premiums.
As with any premium insurance the cost for your Medigap Premium is based on the company you buy it from and the state you’re currently living in. Why and how much will Medigap Premiums increase will affect everybody, but if you bought the premium from an insurance company that sells more expensive premiums, you’re obviously going to pay more during the Medigap Premiums increase.