Medigap Plan D Supplement Insurance

Medigap Plan D — also called Medicare Supplement Plan D — helps pay your out-of-pocket costs if you have Original Medicare.

Medigap policies, such as Plan D, are sold by private insurers. The Medicare Part A and Part B out-of-pocket costs they cover include deductibles, coinsurance and copayments. They do not cover prescription drugs.

As a midrange Medicare Supplement insurance plan, Medigap Plan D covers more than the least comprehensive plan available, but it doesn’t cover all the costs that more comprehensive Medigap policies may cover.

Medigap Plan D is one of eight Medicare Supplement insurance plans available to people who are newly eligible for Medicare. Two plans — Medigap Plan C and Plan F — were phased out and are not available to anyone who became eligible for Medicare beginning on or after January 1, 2020.

All Medigap plans are standardized in most of the United States. But if you live in Massachusetts, Minnesota or Wisconsin, there are different types of standardized Medigap plans. You can talk with your insurer about options similar to Medigap Plan D if you live in one of these states.

Medigap Plan D should not be confused with Medicare Part D prescription drug plans. Both are sold by private insurance companies, but they provide much different coverage.

It is important to be aware of the differences, particularly if you are looking for prescription drug coverage.

Neither Original Medicare nor any Medigap plan covers prescription drugs — outside of a hospital. If you take prescription medications and want help paying for them, you will still need a Medicare Part D plan in addition to Original Medicare and any Medigap plan you purchase.

Part D prescription drug coverage is also included in most Medicare Advantage plans. These are plans you can purchase from private insurers.

Medicare Advantage plans provide the same coverage as Original Medicare but may include additional benefits. Be aware that you cannot purchase both a Medicare Advantage plan and a Medigap policy.

Your Medigap Plan D premium has to be paid in addition to any Medicare Part A, Part B and Part D premiums you have to pay.

The best time to purchase a Medigap Plan D is when you are first eligible — during your Medigap Open Enrollment Period (OEP). This is a six month period starting the month you turn 65.

By enrolling during your OEP, you have a guaranteed issue right — meaning insurance companies cannot use medical underwriting to deny you coverage.

If you wait beyond this six-month period and are in poor health or have a preexisting condition you may be denied coverage or have to pay higher premiums for a Medigap Plan D policy.

There are, however, certain situations that will allow you to buy a Medicare Supplement Plan at any time without medical underwriting. These include relocating or living in certain states that provide additional Medigap protections.