Medicare is a critical health insurance program that provides coverage to individuals aged 65 and older, as well as certain younger individuals with disabilities. While Medicare offers a broad range of benefits, it doesn’t cover all health-related expenses. This is where secondary insurance can step in to help bridge the gap. For many Medicare recipients, AARP offers secondary insurance plans that work in tandem with Medicare to provide additional coverage. In this article, we’ll explore what AARP secondary insurance is, how it works with Medicare, and how it can benefit you.
What is AARP Secondary Insurance to Medicare?
AARP offers secondary insurance in the form of Medicare Supplement Insurance (also known as Medigap), which is designed to help cover the out-of-pocket costs that Medicare doesn’t pay. These out-of-pocket costs can include deductibles, copayments, and coinsurance, all of which can add up quickly if you’re on Medicare alone.
Medigap plans, including those offered through AARP, are private health insurance policies that are sold by private insurers and are regulated by the federal government. The plans are designed to supplement your existing Medicare coverage, which includes Medicare Part A (hospital insurance) and Medicare Part B (medical insurance).
AARP, in partnership with UnitedHealthcare, offers a variety of Medigap plans that are tailored to different levels of coverage. These plans work alongside Medicare, helping to reduce out-of-pocket expenses and ensuring that you have comprehensive coverage.
How Does AARP Secondary Insurance Work with Medicare?
When you enroll in both Medicare and AARP secondary insurance, here’s how the process works:
- Medicare Pays First: Medicare remains your primary insurance, which means it will pay first for your covered health care services. Medicare will cover most hospital and medical costs according to its guidelines.
- AARP Secondary Insurance Pays Next: After Medicare has paid its portion, AARP’s secondary insurance will help cover any remaining costs that Medicare doesn’t pay. This might include deductibles, coinsurance, and copayments. Depending on the Medigap plan you select, your secondary insurance could cover a large portion of those remaining costs.
For example, if Medicare covers 80% of a doctor’s bill, AARP secondary insurance may cover the remaining 20%, depending on the specifics of the plan. This can significantly reduce your out-of-pocket expenses.
Types of AARP Medigap Plans
AARP offers a variety of Medigap plans, each with different coverage levels. These plans are standardized across all insurance companies, meaning the benefits are the same regardless of which provider you choose. However, the premiums may vary. The following is an overview of the most common Medigap plans available through AARP:
1. Plan A
Plan A offers basic coverage, including coverage for Medicare Part A coinsurance and hospital costs, Part B coinsurance, and the first three pints of blood.
2. Plan B
Plan B provides everything that Plan A covers, plus coverage for the Medicare Part A deductible.
3. Plan C
Plan C includes everything covered under Plan B and adds coverage for the Part B deductible and Part B excess charges (extra charges that some doctors may charge above Medicare’s approved amount).
4. Plan F
Plan F is one of the most comprehensive plans and covers almost all out-of-pocket costs, including the Part A and Part B deductibles, coinsurance, and copayments. However, Plan F is only available to individuals who were eligible for Medicare before January 1, 2020.
5. Plan G
Plan G is similar to Plan F but doesn’t cover the Part B deductible, which must be paid out-of-pocket before your secondary insurance starts covering costs. It is one of the most popular choices for new Medicare beneficiaries.
6. Plan N
Plan N offers a slightly lower premium than Plan G and includes coverage for most out-of-pocket costs, but it requires a copayment for certain office visits and emergency room visits. It’s a good option for those who want to save on premiums while still having substantial coverage.
Key Benefits of AARP Secondary Insurance to Medicare
Opting for AARP secondary insurance to Medicare offers a range of benefits:
1. Lower Out-of-Pocket Costs
Medicare doesn’t cover everything. With an AARP secondary insurance plan, you can help fill in the gaps, reducing the out-of-pocket costs that Medicare doesn’t cover, such as copayments, coinsurance, and deductibles. This makes healthcare more affordable and predictable.
2. Freedom to Choose Healthcare Providers
AARP Medigap plans generally allow you to see any doctor or specialist who accepts Medicare, without the need for referrals or network restrictions. This flexibility is especially helpful for individuals who travel or want the freedom to choose their healthcare providers.
3. No Network Restrictions
Unlike Medicare Advantage plans, which typically operate within a specific network of healthcare providers, AARP Medigap plans provide nationwide coverage, and you can visit any provider that accepts Medicare. This is particularly beneficial if you travel frequently or live in multiple locations throughout the year.
4. Guaranteed Renewable
Medigap plans from AARP are guaranteed renewable, meaning your coverage will not be canceled as long as you pay your premiums. This provides long-term security and peace of mind, knowing that your coverage will continue year after year.
5. Simplicity in Coverage
Since Medigap plans are standardized, the coverage for each plan is identical, regardless of the insurance company you buy it from. This makes it easier to compare plans and understand exactly what each one offers.
How to Apply for AARP Secondary Insurance to Medicare
To apply for AARP secondary insurance to Medicare, you will need to be enrolled in both Medicare Parts A and B. You can apply for a Medigap plan through AARP by visiting their website or contacting one of their licensed insurance agents. Here’s a step-by-step guide:
- Review Your Medicare Coverage: Understand your existing Medicare benefits and identify the gaps that you want your secondary insurance to cover.
- Choose a Medigap Plan: Compare the various AARP Medigap plans (A, B, C, F, G, N) to determine which plan best fits your needs and budget.
- Enroll in the Plan: You can apply for a Medigap plan online through the AARP website, by phone, or through an insurance broker.
- Pay Premiums: After you’ve enrolled, you’ll begin paying monthly premiums for your Medigap plan, in addition to your Medicare Part B premium. Be sure to keep up with payments to maintain continuous coverage.
Conclusion
AARP secondary insurance to Medicare is an excellent way for Medicare beneficiaries to reduce their out-of-pocket healthcare costs and gain more comprehensive coverage. By supplementing Medicare with a Medigap plan, you can fill in the gaps left by Medicare alone, ensuring you have the coverage you need without the worry of unexpected medical bills. AARP, in partnership with UnitedHealthcare, offers a variety of Medigap plans to meet the needs and budgets of different individuals, allowing for greater flexibility and peace of mind.
If you’re approaching Medicare eligibility or already enrolled in Medicare, consider exploring AARP’s Medigap plans to find the right secondary insurance that complements your coverage and enhances your healthcare experience.