The typical Medigap premium is $150 a month, though some plans "really ratchet up when you get older:' says Paul Precht, Policy Director for the Medicare Rights Center, a nonprofit advocacy group in Washington, D.C.
Medigap policies typically help pay some of the health-care costs that traditional Medicare coverage does not cover. That can be a big help, because “Medicare does have some high cost-shoring:” says Pamela Meliso, a senior attorney with the nonprofit Center for Medicare Advocacy, Inc. in Willimantic, Connecticut. For example, Medicare has a $1,024 deductible for hospital coverage and generally a 20% co-pay for services covered by Medicare Part B.
Depending on your overall income and assets, you might qualify for some relief that would allow you to drop your Medigap coverage, either through Medicaid, which is a state-administered health program, or through a Medicare savings program. For example, the Qualified Medicare Beneficiary Program, or QMB, typically covers cost-sharing for Medicare beneficiaries with incomes of up to 100% of the federal poverty level and assets of up to $3,000 for an individual or $6,000 for a married couple, though the income limits are higher in some states. In 2010, the federal income limits are expected to rise as part of the Medicare bill approved by Congress earlier this week.
If your income or assets are too high to qualify for government help, another option would be to switch to a cheaper Medigap plan. You could shop for a plan with fewer bells and whistles through the same insurer, or see if a different insurer offers the same level plan for less. You can get information about changing Medigap plans and premiums from the state insurance department where you live.
Individual counseling on Medicare issues can be obtained from the state health insurance counseling and assistance program, or SHIP. There is contact information at shiptalk.org or through the Eldercare locator at 800-677-1116.
Other sources of help: BenefitsCheckUp.org can help you figure out if you qualify for assistance. The Medicare Rights Center, medicarerights.org, has a consumer hotline at 800-233-4114, and the Center for Medicare Advocacy has detailed