When you have Original Medicare (Parts A and B), there is no limit to your annual out-of-pocket costs. Medicare Supplement plans in Michigan help pay some or even all of these costs.
What is Medigap in Michigan?
Original Medicare includes Part A, hospital insurance and Part B, medical insurance. Your Medicare Supplement plan, commonly known as Medigap, helps pay your costs if you have Original Medicare.
There are 10 standard Medigap plans: A, B, C, D, F, G, K, L, M, and N. Not all insurance companies offer every plan and some Medigap insurers provide high-deductible versions of one or more plans.
Medigap plans are standardized, which means each individual plan offers the same benefits no matter where you live or who your insurance company is.
Michigan residents whose income is below 225% of the poverty line may qualify for the state's Medigap Subsidy program. Click the link to learn more.
Who qualifies for Medicare Supplement Insurance in Michigan?
If you have Original Medicare and are age 65 or older, you qualify for Medicare Supplement Insurance in Michigan. The state also requires Medigap insurers to offer at least two plans to those who qualify for Medicare due to a disability, even if they aren't 65 yet.
Under-65 Medicare beneficiaries may be charged a higher rate for their Medigap coverage (and most are).
What does Medigap cover?
Michigan Medigap coverage varies depending on which plan you choose. However, every Supplement plan covers your Medicare Part A coinsurance and gives you an additional 365 lifetime reserve days for hospital care.
The following chart helps you compare the benefits of each Medigap plan:
Note that there are no Medigap plans that include prescription drug coverage. This benefit is provided by a Medicare Part D prescription drug plan.
Medigap Plan C and Medigap Plan F in Michigan
A recent change in federal law means that Medigap plans may no longer cover the Medicare Part B deductible. Since Medigap Plan C and Medigap Plan F provide this benefit, those plans are no longer available if you qualify for Medicare on or after January 1, 2020.
You can get the same coverage – minus the Part B deductible – with either Medigap Plan D or Medigap Plan G.
When is the best time to join a Medicare Supplement plan in Michigan?
The best to join a Michigan Medicare Supplement plan is during your 6-month Medigap Open Enrollment Period (OEP). It begins the day you're both enrolled in Original Medicare and age 65 or older.
During your Medigap OEP, you have what Medicare calls guaranteed issue rights. When this happens, you cannot be denied a Medigap policy nor charged more for it, even if you have preexisting conditions.
If you do not have guaranteed issue rights, your Medigap application goes through a process called medical underwriting. Insurance companies use underwriting to decide whether to insure you and at what rate. The process involves answering a series of health questions, including age, tobacco use, and medical history. When you don't have guaranteed issue rights, your responses to these questions may lead to a denial of coverage or higher premiums.
How to choose a Medigap plan in Michigan
The medical underwriting process is why we recommend you choose the most comprehensive coverage you can afford. If you wait until you have health problems, you may not be able to find Medigap coverage. Or, the premiums may be higher than you can afford.
After coverage you should look at price. Although benefits are standardized, prices are not. Michigan allows Medigap insurers to use one of three pricing methods:
- Community rated: These plans charge the same premium regardless of age. Over time, you pay less for a community rated Medigap plan.
- Issue-age rated: Premiums are based on your age when you join the plan and will not go up as you get older. They may rise over time due to inflation, though.
- Attained-age rated: Premiums start out low but go up as you age. These plans usually cost the most over time.
Our Find a Plan tool makes it easy to compare Medigap plans in Michigan. Simply enter your location information to review Medicare plan options in your area.
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