Do we need to continue paying for Medicare supplemental insurance if we go onto Medicaid?
The simple answer is, no, you do not need to continue paying for Medicare supplemental insurance (Medigap) if you go on Medicaid. Currently, Medicare is the primary payer of your health care costs, and Medigap is the secondary payer. When you enroll in Medicaid, Medicare will remain the primary payer, but Medicaid will become the secondary payer. Therefore, there really isn’t a need to keep your Medicare supplemental insurance because you will have very good coverage between Medicare and Medicaid.
However, in most states, Medicaid recipients are allowed to continue to pay for a Medicare supplemental policy if they choose to do so. One benefit of keeping your Medicare supplemental insurance is that you might be able to keep your current physicians. In addition, if you will have a Medicaid “share of cost” or “patient responsibility” (a payment towards long-term care costs), the cost of the Medicare supplemental insurance can be deducted from the amount you will be required to pay.