What to know about Colonial Penn Medicare supplement insurance plans (Medigap)

Colonial Penn is a private company administering Medigap, which refers to Medicare supplement insurance plans. The plans may help pay Medicare costs, such as copays and deductibles.

Monthly premiums are the only Medigap expense. Prices vary among plans and depend on several factors, such as an applicant’s age and health.

Read on to learn more about Colonial Penn and Medigap. This article looks at plans and coverage, availability, and costs.

Glossary of Medicare terms

We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:

• Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.

• Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.

• Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.

• Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.

What is Colonial Penn?

Colonial Penn Life Insurance Company is a life insurance company based in Philadelphia. It is a subsidiary of CNO Financial Group, Inc.

Colonial Penn administers Medigap supplement insurance policies through its partnership with Bankers Life.

What is Medigap supplement insurance?

Medigap is Medicare supplement insurance that fills the coverage gaps of Original Medicare. While Original Medicare (parts A and B) covers a substantial portion of healthcare costs, beneficiaries must pay deductibles, copays, and coinsurance. These expenses are called coverage gaps.

In addition to helping with out-of-pocket costs of Original Medicare, some Medigap plans also provide emergency care when a person is traveling out of the country.

Medigap works with Original Medicare but not with Medicare Advantage. The plans also do not pay uncovered Part D costs.

The Medicare online tool can help someone find a Medigap plan in their area.

Learn more about how Medigap works.

Colonial Penn Medigap plans

Colonial Penn administers Medigap supplement insurance plans A, F, G, HG, and N. It also offers Plan B in Pennsylvania and plans C and D in New Jersey.

Medigap plans are standardized, meaning the features of Medigap Plan A in one state are identical to those in another state. The exceptions are for programs in Massachusetts, Wisconsin, and Minnesota, where these states standardize Medigap plans differently.

Depending on the plan type, Colonial Penn supplement insurance plans may help cover:

• Part A deductibles

• Part B deductibles

• Part B coinsurance

• Part B excess charges

• hospice care coinsurance or copayments

• skilled nursing facility care coinsurance

• up to 80% coverage for foreign travel emergency care

Learn about comparing Medigap plans.

Medigap premiums

Monthly premiums are the only cost that comes with Medigap plans. However, a person will still need to pay the costs relating to Original Medicare, such as the Part B premium.

While the plans have standardized benefits, they do not have standardized costs, which can differ for each state.

Premiums also depend on factors such as a person’s age, sex, and health.

The costs can vary widely. For example, the Plan A premium for people in Philadelphia, PA, with the ZIP code 19019, ranges from $95 to $999. For Plan F, the cost ranges from $156 to $1,226.

Learn more about the costs of Medigap.

Summary

Colonial Penn administers Medicare supplement insurance, or Medigap, through Bankers Life. They are both part of CNO Financial Group, Inc.

Original Medicare, consisting of parts A and B, has out-of-pocket costs, such as deductibles and copays. Medicare supplement insurance plans may help pay some of these expenses.

Medigap benefits and monthly premiums vary between plans.

View the original article on Medical News Today