b'Medicare B a sic s .coinsurance of about 5% or a copayment for drugs forThe most basic Medigap plan is Plan A. That supple-the rest of the year. Most Part D drug plans charge amental plan covers the Medicare Part A coinsurance fairly reasonable premium (but some are free). As isand hospital costs (up to an additional 365 days after the case with Medicare Part B coverage, those withMedicare benefits are used). It also covers Medicare higher income will pay a surcharge on top of the PartPart B coinsurance or copayment costs, the first three D premium. Also, it is very important that seniors notpints of blood, and the Medicare Part A hospice care delay enrolling in a Medicare Part D prescription drugcoinsurance or copayment costs. The other Medigap plan since Medicare assesses a permanent premiumplans cover these same basic benefits (most at 100%), load of 1% per month for each month an individualbut add varying levels of coverage for other things was eligible but went without creditable prescrip- like skilled nursing facility care coinsurance, the tion drug coverage. In 2021, that permanent monthlyMedicare Part A deductible, the Medicare Part B penalty was equal to $0.33 multiplied by the numberdeductible, foreign travel emergency, and Medicare of uncovered months. Part B excess charges. The CMS Medigap handbook Whats the difference between referenced above includes a helpful and easy-to-read Medicare and Medicaid? matrix that illustrates the various coverages of each of the Medicare Supplement policies.Medicare is an insurance program that is run by theFederal law requires that all Medigap plans must federal government. It provides health insurancebe standardized. Since there is no difference in the coverage for people who are at least age 65 and forbenefits of the Medigap plans sold by various insur-certain disabled individuals who are younger than 65.ance companies, most people shop for a Medigap plan In contrast, Medicaid is an insurance program thatbased on service and price (which can vary widely). is run jointly by the federal government and variousImportant Tip: The premium for most Medigap state governments, and it provides long-term medicalplans will increase annually to reflect aging. Many and custodial care coverage to low-income individualsMedigap companies attract younger seniors by artifi-and families. cially lowering the rates of the earlier entry ages and What are Medicare Supplement inflating the rates of older seniors, so be sure to also (aka Medigap) insurance policies? compare premiums at older ages when you shop for Medigap policies are health insurance policies that arethe most affordable Medigap plan.sold by private insurance companies to supplement orHow can I learn more about Medicarefill in the gaps of Original Medicare coverage. Medigapand Medigap insurance policies?policies can help pay an enrollees share of theWMI sells various Medicare Supplement policies in costs of Medicare-covered services like coinsuranceArizona, Montana, Nevada, New Mexico and Utah. amounts, copayments, or deductibles. In order to pur- These policies are generally sold on a direct-to-con-chase a Medigap plan, the applicant must be enrolledsumer basis which saves seniors expensive commis-in Medicare Part A and Part B. Insurance companiession costs so contact us for a free no-obligation quote. are prohibited from selling a Medigap plan to an indi- You can also contact me or visit our website atvidual who is on a Medicare Advantage plan (unlesswmimedigap.com if you have questions aboutthat individual is dropping the Advantage plan). Medicare and Medigap policies or would like a free Although the Medigap naming conventions are con- copy of the referenced CMS publication. Of course, fusingly similar to the names of the various Medicarethe ultimate authority on Medicare is the federalIf you have questions parts, the standardized Medigap plans and theirgovernment, and you can find a lot of helpful informa- about this article or alpha plan names are totally different. The wordtion at the Centers for Medicare & Medicaid Serviceswould like to discuss parts refers to the four Medicare programs (Parts A,website at www.cms.gov. Finally, if youre lookingyour companys health B, C and D) that are run by (or under the tight super- for a Medicare Part D prescription drug plan, you caninsurance progam, feel vision of) the government. The word plans refers totake advantage of Medicares helpful and user-friend- free to contact me at privately sold supplemental insurance policies that arely plan finder at medicare.gov. (801) 263-8000 or permitted by the government (currently Plans A, B, C,info@wmimutual.com. D, F, G, K, L, M and N). Note: Medigap plans C and F are no longer available to people who were born on or after January 1, 1955. SWPMA News / Winter 202149'