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As you approach retirement age, healthcare costs can quickly become a concern. Medicare provides a basic level of coverage, but it may not be enough to cover all of your healthcare needs. That's where AARP Medicare Supplement plans come in.

What is AARP Medicare Supplement?

AARP Medicare Supplement plans, also known as Medigap plans, are insurance policies that help cover the out-of-pocket costs that Medicare doesn't cover. These plans are offered by private insurance companies and are designed to work alongside your Medicare coverage.

AARP Medicare Supplement plans are standardized, which means that each plan has the same benefits, regardless of which insurance company you choose. There are ten different Medigap plans available, labeled A, B, C, D, F, G, K, L, M, and N. Each plan offers a different level of coverage, with Plan F offering the most comprehensive coverage.

Benefits of AARP Medicare Supplement

One of the biggest benefits of AARP Medicare Supplement is that it helps fill the gaps in your Medicare coverage. Medicare typically covers about 80% of your healthcare costs, leaving you to pay the remaining 20%. With a Medigap plan, you can reduce or even eliminate these out-of-pocket costs.

Another benefit of AARP Medicare Supplement is that it provides predictable healthcare costs. With Medicare alone, it can be difficult to predict how much you'll need to pay for healthcare each year. With a Medigap plan, you'll have a clearer picture of your healthcare costs, making it easier to budget and plan for your retirement.

AARP Medicare Supplement plans are also portable, which means that you can take your plan with you if you move to a different state. This can be especially beneficial if you plan to travel frequently during retirement.

Enrolling in AARP Medicare Supplement

To enroll in AARP Medicare Supplement, you must first be enrolled in Medicare Parts A and B. You can then apply for a Medigap plan during your six-month open enrollment period, which begins on the first day of the month in which you turn 65 and are enrolled in Medicare Part B.

During your open enrollment period, insurance companies cannot deny you coverage or charge you more based on your health status. If you miss your open enrollment period, you may still be able to enroll in a Medigap plan, but you may be subject to medical underwriting, which could result in higher premiums or even denial of coverage.

In conclusion, AARP Medicare Supplement plans are a valuable option for anyone who wants to reduce their out-of-pocket healthcare costs and have more predictable healthcare expenses in retirement. If you're nearing retirement age, it's worth considering a Medigap plan to see if it could benefit you.