How will my Medigap Policy work with my Medicare prescription drug coverage?

Currently, no Medigap policies with drug coverage are being sold. However, you may have joined a Medigap policy in the past that includes drug coverage.

If you currently have a Medigap policy that covers prescription drugs (you have one of the standardized Medigap plans H, I, or J or a non-standardized Medigap plan that includes drug coverage):

You can't have prescription coverage from both a Medigap policy and a Medicare drug plan. You will generally save money and get better coverage with the Medicare drug coverage. Medicare coverage will never run out if you have high drug costs.

Your Medigap plan should have sent you information that explains how your current coverage compares to the standard Medicare prescription drug coverage. Do not make any decisions until you have read this information. If you did not receive it, you should contact your Medigap plan.

If your Medigap plan has told you that your current coverage is, on average, at least as good as the Medicare standard drug coverage (creditable drug coverage):

• You can keep it as long as it is still offered by your Medigap plan.
  AND
• You won't have to pay a penalty if you decide to join a Medicare drug plan after you are first eligible. You must join a Medicare drug plan within 60 days after your Medigap coverage ends.

If your Medigap plan has told you that your current coverage is not, on average, at least as good as standard Medicare drug coverage (non-creditable):

• You can join a Medicare drug plan. You will need to tell your Medigap plan to remove the drug coverage portion of your Medigap policy. You will not be able to get it back. You can also switch to a Medigap policy that doesn't cover prescription drugs.
  OR
• You can decide to keep your Medigap drug coverage and not join a Medicare drug plan. However, if you decide to join a Medicare drug plan after you are first eligible, you will have wait until the next annual election period and pay a higher premium.