In Medicare, IRMAA stands for Income-Related Monthly Adjustment Amount. It's an additional surcharge on Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. This surcharge is calculated based on the beneficiary's Modified Adjusted Gross Income (MAGI) from two years prior.
Coverage:
Medigap policies offer standardized coverage, meaning policies with the same letter offer the same basic benefits, regardless of the insurance company.
Standardization:
There are different types of plans (A through N) with varying benefits.
Cost:
Medigap premiums vary based on the specific plan and the insurance company offering it.
Additional Benefits:
Some plans may cover additional benefits, such as emergency medical care outside the US, or may include benefits like vision, dental, or hearing coverage.
Eligibility:
You must be enrolled in Original Medicare Part A and Part B to be eligible for Medigap.
Open Enrollment:
You have a Medigap Open Enrollment period, which starts when you're 65 or older and enrolled in Medicare Part B. During this period, you can buy any Medigap policy without being denied coverage due to pre-existing conditions.
What are the parts of Medicare?
Part A – Hospital Insurance Helps cover:
Part B – Medical Insurance Helps cover:
Part C - Medicare Advantage
Medicare Advantage plans are a type of Medicare health plan offered by private companies that are approved by Medicare. It provides the same coverage as Original Medicare (Part A and Part B) and may include additional benefits like vision, hearing, and dental coverage, as well as prescription drug coverage (Part D).
Part D – Drug Coverage
Helps cover the cost of prescription drugs (including many recommended shots or vaccines). Plans that offer Medicare drug coverage (Part D) are run by private insurance companies that follow rules set by Medicare.
Eligibility for Medicare
To sign up for Medicare Parts A, B, and supplemental coverage (known as Supplement, Advantage, or Prescription Drug Plans), most people will have an Initial Enrollment Period which is a 7 month period around the time they turn age 65. This period begins 3 months before the month you turn 65, includes the month you turn 65, and ends 3 months after the month you turn 65.
Once your Initial Enrollment Period is over, if you wish to change or purchase Advantage and Supplement Plans, you must act during the open enrollment period.
MISS THE DEADLINE? To enroll for Medicare outside of the open enrollment period, you will need a qualifying event to be eligible.