Can I Have More Than One Medicare Supplement Policy?
Clarify if you can have multiple Medicare Supplement policies. Understand the rules, avoid common issues, and manage your Medigap coverage wisely.
Medicare Supplement policies, commonly known as Medigap, are private insurance plans designed to cover some of the out-of-pocket costs left by Original Medicare (Parts A and B), such as deductibles, copayments, and coinsurance. This article clarifies the regulations surrounding multiple Medigap policies and how they interact with other forms of health coverage.
The Rule on Multiple Medigap Policies
It is not permissible to possess more than one Medicare Supplement policy at the same time. Federal law, specifically the Social Security Act Section 1395ss, prohibits insurance companies from knowingly selling more than one Medigap policy to a single individual. This regulation exists because Medigap policies are standardized, meaning plans with the same letter designation offer identical basic benefits regardless of the insurer. These policies are designed to work in conjunction with Original Medicare, covering its “gaps,” not to supplement each other. A second policy would be redundant and offer no additional benefits, as one standardized policy is sufficient to provide the intended supplemental coverage.
Consequences of Overlapping Coverage
If an individual acquires more than one Medicare Supplement policy, several practical implications can arise. Medicare’s claims processing system identifies duplicate coverage. Having two active Medigap policies can lead to confusion, delayed payments, or even denied claims from the second insurer, as benefits cannot be duplicated. Maintaining multiple Medigap policies results in wasteful premium payments, as individuals pay for benefits they cannot utilize. Resolution involves canceling one of the policies, which creates administrative burdens and financial inefficiency.
Coordination with Other Health Insurance
Understanding how Medigap coordinates with other types of health insurance is important, as these scenarios differ from possessing multiple Medigap policies. A Medigap policy cannot be held by someone enrolled in a Medicare Advantage (Part C) plan. These are two distinct ways to receive Medicare benefits; Medigap supplements Original Medicare, while Medicare Advantage is an alternative all-in-one plan. If an individual enrolls in a Medicare Advantage plan, they must disenroll from their Medigap policy.
Medigap can also interact with employer-sponsored or retiree group health plans. The employer plan may act as the primary payer and Medigap as secondary, or vice-versa, depending on factors such as the employer’s size. This coordination of benefits does not mean an individual has two Medigap policies; it signifies how different types of coverage work together.
Individuals who qualify for Medicaid do not require a Medigap policy. Medicaid covers costs that Medigap would, acting as a payer of last resort and making a Medigap policy redundant for those with full Medicaid benefits.
Similarly, individuals with TRICARE or VA benefits find a Medigap policy unnecessary. TRICARE for Life, for example, functions as comprehensive supplemental coverage for Medicare beneficiaries, effectively eliminating the need for a separate Medigap policy. VA benefits also provide extensive coverage, making Medigap beneficial primarily for care received outside the VA system.