Medicare Supplement (Medigap) Plans in Alabama

Key Takeaways

Medicare Supplement Plans are also known as Medigap.
Medigap helps to cover out-of-pocket costs associated with Medicare.
You can’t have Medicare Advantage in Alabama and have a Medigap policy. You can only pair Medigap with Original Medicare.
The best time to enroll in Medigap in Alabama is when you’re first eligible for Medicare.

Alabama Medicare Supplement Plan Coverage

Medicare Supplement Plans in Alabama can help you navigate out-of-pocket costs associated with Original Medicare. Examples include co-payments, co-insurances and deductibles.

Also known as Medigap, these plans are uniform across the country. They are labeled as Medigap Plans A through N, although some companies are no longer allowed to sell certain plans. Using letters for the plans can be confusing as Medicare also uses letters to refer to its Parts (like Parts A, B, C or D). Keep in mind that plans (Medigap) and parts (Medicare) are two different things.

Coverage under Medigap in Alabama depends upon what plan type you choose. However, all plans cover Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used.

Other available coverage elements that plans may offer include:

Medicare Part B coinsurance
Blood for medical services (first 3 pints)
Part A hospice care coinsurance or copayment
Part A deductible
Part B excess charges
Foreign travel emergency

Medigap policies cover many out-of-pocket costs, but there is some coverage they don’t offer. This includes long-term care, vision, hearing, eyeglasses or private-duty nursing.

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AL Medigap Plan Costs

Medigap plans can range in costs, based on many factors. These include:

Your age at the time you apply
Chronic medical conditions or health habits (such as if you smoke)
Your location
The type of Medigap plan you wish to purchase

Insurance companies aren’t required to charge a flat rate for these policies. Therefore, the policy price can fluctuate. However, insurance companies still do have to offer competitive rates. And, if you apply in your open enrollment period — which is a six-month period that begins the month you first are enrolled in Medicare Part B — Medigap companies do have to offer you a policy.

As a general rule, the more expansive the Medigap coverage, the more expensive the policy. That’s why Plan G, which offers the most coverage of the currently available plans, is often the most expensive Medigap plan. There are also high-deductible plans, which don’t cover costs until you have spent a certain amount out of pocket. High-deductible plans tend to have less expensive monthly premiums because you may not need to use them.

Medicare Supplement Plan Eligibility & Enrollment in Alabama

Medigap plans are somewhat unique in the Medicare world in that you can apply to enroll at any time when you are Medicare eligible. However, the best time to apply is going to be when you are first eligible for Medicare in Alabama.

Also known as your Medigap Open Enrollment Period, you can apply for a Medigap policy in Alabama the first day of the first month when you are enrolled in Medicare Part B. After this point, you have six months to apply for and purchase a Medigap policy. During this time, insurance companies cannot deny selling you a Medigap policy, even if you have significant health problems (which means your insurance company will likely have higher expenses associated with your policy). This is known as guaranteed-issue rights.

After the Medigap Open Enrollment Period ends, an insurance company can deny issuing you a policy. You also may have to pay more the longer you wait, especially if you have new or chronic health conditions.

It’s possible that you could qualify for a Special Enrollment Period that once again offers you guaranteed issue rights in Alabama. While by no means a comprehensive list, some of these circumstances include:

Your employer cancels your group health plan.
You canceled your Medicare Advantage plan within the first 12 months of enrollment.
You lost your previous Medicare supplement coverage because your insurance company violated its contract with you.

However, you still may not be able to qualify for all Medigap plan types in this Special Enrollment Period.

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Are there Alabama Medicare Supplement Plans With Prescription Drug Coverage?

Currently, Medigap plans don’t offer prescription drug coverage. If you purchased a Medigap policy before January 1, 2006, it may include prescription drug coverage, but you may lose that coverage if you switch plans.

Today, you must purchase Part D coverage in addition to Medigap insurance. Even if you do choose the same insurance company for both policies, you must pay two separate premium payments.

Medigap vs. Medicare Advantage in Alabama

If you have a Medigap policy in Alabama, you cannot have Medicare Advantage. Medicare Advantage plans are private health insurance that provides Part A and Part B coverage, as well as some additional benefits. It’s illegal for an insurance company to sell you a Medigap policy if you have Medicare Advantage.

There’s a few reasons this is the case. Medicare Advantage policies have different co-payments than Original Medicare. They also have a deductible, unlike Original Medicare. Therefore, Medigap policies aren’t intended to work with Medicare Advantage plans as they are for Original Medicare.

FAQs

Does Medicare require me to have a Medigap policy?

Medicare doesn’t require you to have a Medigap policy. It’s your choice if you would like to purchase this supplemental insurance in Alabama. Because the coverage is optional, you don’t face any penalties if you do not immediately enroll when you are eligible.

Can an insurance company cancel my Medigap policy?

Once you purchase your Medigap policy, your insurance company can’t cancel it as long as you maintain your insurance premiums. Some Medigap policies are no longer available. However, if you had a Medigap policy that’s not offered anymore, you can keep that policy if you wish.

Does Medigap cover me and my spouse?

Medigap policies are individual. This means if you and your spouse want Medigap policies, you must apply individually for the policies. However, many insurance companies will offer a discount if you and your spouse or partner purchase a policy at the same time. You may wish to ask about this potential cost savings if you are both Medicare-eligible.

Which Medigap plans are no longer offered?

Insurance companies can no longer sell Medigap plans C, E, F, H, I or J. Insurance companies can no longer sell Plans C and F after January 1, 2020, because these plans cover the Part B deductible. Plans are no longer permitted to cover this deductible.

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Medicare Learning Guides

Healthcare is personal. So is choosing insurance. If you are new to Medicare, a beneficiary researching options, or a caregiver, we have tailored Medicare Guides for you.

Sources

What’s Medicare Supplement Insurance (Medigap)? Medicare.gov.
When can I buy Medigap? Medicare.gov.
Compare Medigap Plan Benefits. Medicare.gov.

This website is operated by GoHealth, LLC., a licensed health insurance company. The website and its contents are for informational and educational purposes; helping people understand Medicare in a simple way. The purpose of this website is the solicitation of insurance. Contact will be made by a licensed insurance agent/producer or insurance company. Medicare Supplement insurance plans are not connected with or endorsed by the U.S. government or the federal Medicare program. Our mission is to help every American get better health insurance and save money.

Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

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