Suppose Someone Told You They Have Prescription Drug Coverage Through Their Medigap Policy. Is This Possible?
- Gloria Moses
- Jul 29, 2024
- 2 min read
Updated: Oct 31, 2024
Suppose someone told you that they have prescription drug coverage through their Medigap policy. Is this possible? Yes. You see prior to January 1, 2006, prescription drug coverage was included in Medigap policies H, I and J. These policies are no longer available but people who purchased these policies, at that time, can still keep and use their policies now.
There are several reasons why Medigap policies no longer include prescription drug coverage.
People were not buying these policies because of the high cost. Only 1 out of 10 people purchased these policies. When people compared the high cost vs the benefits, it wasn’t worth it.
These policies were more expensive in comparison to policies that did not include prescription drug coverage.
The premiums for these policies were two to three times higher than the premiums for group policies.
The premiums for these policies increased with age and inflation.
Our goal for this post is to summarize the reasons why Medigap plans sold after 2005 do not include prescription drug coverage. You can find out further details by referring to the resources section below. If you have Original Medicare, you can purchase a Medicare drug plan (or Part D plan). If you still have a Medigap policy that includes prescription drug coverage, we suggest you compare plans to see if a Medicare drug plan is a better fit for your needs now. If so, you can join a Medicare drug plan during the Annual Open Enrollment (AEP) period from October 15 through December 7th. Your new coverage will be effective January 1st.
We hope this information has been helpful. If you are interested in learning more about Medigap plans and/or a Medicare drug plan, please contact Benefits-4-Retirees.
“Price is what you pay. Cost is what you spend. Value is what you get”. ~ Alan Weiss
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