Medicare supplement insurance (Medigap) is extra insurance you can purchase from Medicare-approved private insurance companies. It helps cover certain costs associated with Original Medicare (Part A and Part B) and offers additional coverage.
Medigap is only available if you have Original Medicare.
Glossary of common Medicare terms
- Out-of-pocket cost: This is the amount you pay for care when Medicare doesn’t pay the full cost or offer coverage. It includes premiums, deductibles, coinsurance, and copayments.
- Premium: This is the monthly amount you pay for Medicare coverage.
- Deductible: This is the annual amount you must spend out of pocket before Medicare begins to cover services and treatments.
- Coinsurance: This is the percentage of treatment costs you’re responsible for paying out of pocket. With Medicare Part B, you typically pay 20%.
- Copayment: This is a fixed dollar amount you pay when receiving certain treatments or services. With Medicare, this often applies to prescription medications.
There are 10 types of Medigap plans that are identified by letters. Generally, the coverage among these plans is standardized and the only difference between insurance companies is the monthly premium.
But Minnesota is one of the states that standardizes Medigap differently. Instead of offering 10 lettered plans, Minnesota offers a basic plan and an extended basic plan.
Certain types of the extended basic plan are only available if you became eligible for Medicare before January 1, 2020.
Various insurance companies offer Medigap plans in Minnesota, including:
- ACE Property and Casualty Insurance
- Blue Cross and Blue Shield of Minnesota
- Cigna
- Humana
- Medica
- National Health Insurance Company
- State Farm
- AARP- UnitedHealthcare
- Washington National Insurance Company
The Medigap plans in Minnesota are standardized to offer the following basic benefits:
- inpatient hospital costs
- medical costs
- blood
- Part A hospice and respite care cost sharing
- Part A and Part B home health services and supplies cost sharing
Insurance companies may also offer the following options in addition to the basic coverage:
- $20 and $50 copayment for Part B
- 50% Part A deductible
- high deductible
- 50% coverage
- 75% coverage
The following table shows a comparison of coverage for the Medigap plans in Minnesota.
| Medicare benefit | Basic Plan | Extended Basic Plan |
|---|---|---|
| Basic benefits | Yes | Yes |
| Part A inpatient hospital deductible | No | Yes |
| Part A skilled nursing facility (SNF) coinsurance | Yes (100 days of SNF care) | Yes (120 days of SNF care) |
| Part B deductible | No | Yes |
| Foreign travel emergency care | 80% | 80% |
| Outpatient mental health | 50% | 50% |
| Usual and customary fees | No | 80% |
| Medicare-covered preventive care | Yes | Yes |
| Physical therapy | 20% | 20% |
| Coverage while in a foreign country | No | 80% |
| State-mandated benefits (diabetic supplies and equipment, routine cancer screening, reconstructive surgery, and immunizations) | Yes | Yes |
The monthly premiums for Medigap plans can vary by company. The Medicare online search tool can help you find plans available in your state and cost information.
The following chart gives some examples of Medigap policies and prices in Minnesota. These prices do not include the Medicare Part B premium, which you’re responsible for paying in addition to the Medigap premium.
Medigap premiums depend on:
- age
- sex
- health status
- when you purchase the plan
| Medigap plan | Monthly premium range |
|---|---|
| Medigap $20 & $50 Copay Plan | $156 to $275 |
| Medigap 50% Cost Sharing Plan | $86 to $164 |
| Medigap 75% Cost Sharing Plan | $147 to $235 |
| Medigap Basic Plan | $180 to $327 |
| Medigap Extended Basic Plan (only available if eligible for Medicare before January 1, 2020) | $274 to $732 |
| Medigap Extended Basic Plan – New | $255 to $711 |
| Medigap High Deductible Plan (only available if eligible for Medicare before January 1, 2020) | $64 to $111 |
| Medigap High Deductible Plan – New | $54 to $134 |