Leonie Dennis is a rising subject matter expert in the Medicare and ACA healthcare reform landscape. She holds a Bachelor of Science in Marketing from William Paterson University of New Jersey.
Updated on February 23rd, 2022
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If you’re looking for a way to manage your Medicare costs in the Heart of Dixie, an Alabama Medicare Supplement plan 1 might be right for you.
What You Need to Know
Once you’re 65 and eligible for Medicare Part B, you can buy a Medigap policy.
Different insurers offer Medigap policies in Alabama. The letter plans are the same across insurers, but costs may vary.
Your Medigap Open Enrollment Period allows you to get the best price on a policy, which is guaranteed renewable as long as you pay premiums on time.
Alabama Medicare Supplement, also called Medigap, is a private health plan that works with Medicare Part A hospital and Medicare Part B outpatient insurance, known as Original Medicare.
Original Medicare doesn’t cap out-of-pocket expenses, and it doesn’t fully cover medical costs. That’s where Medigap comes in. It helps pay up to 100% of the costs that Original Medicare doesn’t cover, which are mostly coinsurance, copayments, and deductibles. Your Medigap insurance company typically sends payments directly to your healthcare provider to cover these costs. You must pay premiums to your Medigap provider on time (usually monthly) to keep your policy active.
Alabama Medicare Supplement plans come in 10 standard types: A, B, C, D, F, G, K, L, M, and N. You can’t buy Plan C or F if you were newly eligible for Medicare as of January 1, 2020. In most cases, you can enroll in Alabama Medicare Supplement plans if you’re 65 or older. Alabama doesn’t guarantee that companies have to sell policies to people under 65, who qualify for Medicare due to a disability or chronic condition. 2
First, be sure you need an Alabama Medicare Supplement plan. Here are some things to think about:
More than 650,000 Alabamians have Original Medicare, which may include those who qualify for Medigap. 3 You can apply for a policy at any time. But the best time to sign up is during your Medigap Open Enrollment Period (OEP), which is the first six months after you turn 65 and enroll in Part B. If you enroll during your OEP, insurance companies must accept you and they can’t charge you more because of your health.
Outside of your OEP, you usually must answer health questions (known as medical underwriting) to qualify for a policy. If you have health problems, companies can make you wait six months before covering any preexisting conditions, charge you more, or deny you coverage. However, these rules don’t apply if you have a guaranteed issue right to buy Medigap, meaning you have other creditable coverage that ends or changes in some way.
Alabama Medicare Supplement plans can help you save money on Medicare Part A and B costs.
Medicare Supplement Plans F, G, and N cover the majority of your expenses and are usually the most popular options.
Alabama Medicare Supplement premiums vary by company and plan type. Monthly premiums for a 65-year-old, nonsmoking female are as follows: 5
There are more than two dozen Alabama Medicare Supplement insurance companies. Here are some of the most popular: 6
All Alabama Medicare Supplement policies have a 30-day “free-look period” in which you can cancel your policy to enroll in another. Most insurers require that you keep your first policy active until the new one becomes effective, which may result in paying for two policies for one month.
However, the rules for enrolling in Medigap also apply to switching your policy. So insurers can use medical underwriting if you switch policies outside of a guaranteed issue circumstance. This means you could be denied coverage or pay higher premiums based on your health.
Medicare Advantage, or Part C, is another type of private health insurance that helps fill the gaps in Medicare. Roughly 37% (about 391,000) of Medicare beneficiaries in Alabama have a Medicare Advantage plan. 7 Medicare Advantage plans provide Medicare Part A and B as well as benefits like prescription drug, dental, hearing, and vision coverage.
Medicare Advantage works much like an HMO or PPO plan. In exchange for comprehensive coverage, you’re restricted to in-network providers.
Keep in mind that you can’t have both Medigap and Medicare Advantage at the same time.