By Marcia Conard
First, you may ask, “What is Medigap?” If you are on Medicare and shopping or have enrolled in a Medicare supplement insurance plan, that plan is also called Medigap. So, what is the Michigan Medigap Subsidy you ask? It is a program from the Michigan Health Endowment Fund and what it means is that if you qualify, it will pay a portion of your insurance premium. If you are approved the amount will not be paid to you, but directly to your insurance carrier and subtracted from your monthly premium owed. The amount of the subsidy is dependent upon your age and whether you have a disability. The amounts have recently changed as this program enters its sunset stage. The funding that remains should last through 2021 and possibly all or part of 2022. There has also been a deadline established for the acceptance of applications. You may apply any time before January 4, 2021. The adjusted amounts the fund will now pay are as follows:
- If you are under 65 with a disability: $75 per month
- 65 – 74 years old: $25 per month
- 75 years or older: $45 per month
What this means is that if you are 77 years old and have a premium of $145 per month, the subsidy pays $45 and you would pay the remaining $100 per month.
Not all insurance companies participate with the Michigan Medigap Subsidy. Currently, those participating are:
- Blue Cross Blue Shield of Michigan
- Blue Care Network
- Priority Health
- United Healthcare AARP Medicare Supplement
- McLaren Health Plan
If your Medigap insurer is not listed, contact your insurer to see if they have recently joined or plan on joining the program.
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The Medigap subsidy does not change your policy or increase the premium on your coverage. Your benefits and services will remain the same, but the subsidy will lower the amount of your bill.
How do you qualify?
The subsidy is for Michigan residents who:
- Have a household income at or below 225% of the Federal Poverty Level (FPL). For example, $28,710 or less for one person or $38,790 or less for two people and so forth.
- Qualify for Medicare
- Have a qualifying Medigap coverage from a participating insurer.
People with full Medicaid do not qualify. It is possible if you have Medicaid Deductible you may still qualify.
How do you apply?
- You can apply online at MichiganMedigapSubsidy.com
- You can also download a paper application from the website to complete and mail. Send it to:
Michigan Medigap Subsidy
PO Box A3413
Chicago, Il 60690-9901
- Contact Michigan Medigap Subsidy at 1-866-824-9772 (TTY: 1-866-824-7002) Monday to Friday, 8:00am – 4:30pm. The call is free.
What information will you need to apply?
You will need:
- Basic information about the applicants, such as name and Social Security Number
- Basic information about the main contact for the application, if not one of the applicants
- Information about your Medigap coverage, such as your insurer’s name and your policy or contract number
- Proof of benefits, such as a SNAP (food stamps), or proof of income, such as a current tax return, Social Security benefit statement, or IRA distribution statement
You may also need to provide basic information about members of your household.
More than one person in a household can apply. Actually, you can use one application for all the people applying from one household.
If approved, you have nothing further to do. Once your insurer starts to receive the subsidy, you will start paying a reduced bill from your insurer.
IF YOU ARE UNSURE HOW TO GO ABOUT THE PROCESS, CONTACT US AT GRANT SMITH HEALTH INSURANCE AGENCY AT (810) 984-1373, MAKE AN APPOINTMENT, BRING THE REQUIRED DOCUMENTATION OUTLINED IN THIS ARTICLE, AND WE WILL ASSIST YOU IN COMPLETING AND FILING THE APPLICATION. THERE IS NO CHARGE FOR US TO ASSIST YOU WITH THIS PROCESS.
For complete information on the Michigan Medigap Subsidy or to review the Frequently Asked Questions and Answers go to the website at: