Low cost medigap insurance

There are 12 standard low cost medigap insurance plans that help pay some of your costs in the original medicare plan and for some care it doesn't cover. All low cost medigap insurance plans must cover certain basic benefits.

Each standard low cost medigap insurance plan, labeled A through L, offers a different set of benefits, fills different "gaps" in low cost medigap insurance coverage, and varies in price. Medigap plans K and L are new plans that became available in 2006. The basic benefits for Medigap plans K and L are similar to the basic benefits offered in plans A through J, but these plans have lower monthly premiums and have higher out-of-pocket costs.

Insurance companies may offer a "high-deductible option" on medigap insurance plans F and J. If you choose this option, you will first have to pay a $1,860 deductible in 2007 before the low cost medigap insurance plans pay anything. This amount can go up every year. Premiums for high-deductible option policies often cost less, but if you get sick, your total costs will be higher.

In addition to the A-L standard Medigap policies, Medicare SELECT is a type of low cost medigap insurance policy that can cost less than standard low cost medigap insurance plans. However, you can only go to certain doctors and hospitals for your care. Check with your state insurance department to find out if Medicare SELECT policies are available in your state.

If you are in Medicare Advantage Plan, such as a Medicare Health Maintenance Organization (HMO), you don't need a Medigap policy.

New low cost medigap insurance policies no longer offer prescription drug coverage. If you purchased a low cost medigap insurance policy that covers prescription drugs before January 1, 2006, you can keep that coverage if you didn't enroll in a Medicare prescription drug plan. You should have received detailed information in the mail from your low cost medigap insurance company about your drug options.

To learn more about low cost medigap insurance plans in your area, look for low cost medigap insurance online. You can also get additional information about low cost medigap insurance plans in your state by checking with your state insurance department or the Guide to Health Insurance for People with Medicare.