Medicare Insurance will cover a lot of, no where near all, different medical-related expenses. That is where Medigap insurance fits in, it can cover all the ‘gaps’ which are left over by medicare like deductibles and excess charges. Those medical expenses are really going to add up to a huge number, and if you need skilled nursing just forget about it.
Some Medigap policies will also pay for certain health services outside the U . S and additional preventive services not insured by Medicare.
Medicare Supplemental insurance (aka medigap) is totally optional and seniors are responsible for spending money for it. The cost of Medigap is put on the recipient of it, medicare will not help pay or subsidize it.
How Do Medicare supplement Plans Function?
If you are in Original Medicare (Parts A and B) and you’ve got a Medigap policy, first Medicare pays its share of the Medicare-approved amounts for your covered health care costs. Then your Medigap policy pays its share of the cost.
For Instance: John K has Arthritis and has to see his doctor every two to five months for treatment. Her Medigap policy covers Plan B coinsurance, but not her Plan B deductible. At the beginning of the year, she pays for the first $155 of her medical visit costs. From that point and onward, his medicare insurance will take care of 80 percent of approved costs of every doctor visit and his medigap plan will cover the remaining amount.
Medicare supplement plans are marketed by private insurance companies. These policies are required to be clearly identified as Medicare Supplement Insurance. And every type of medigap plan must follow state and federal regulations that were set up to protect the recipient.
Medigap insurance companies can only offer you a standardized Medigap policy identified by letters A through L.
Every single Medigap plan must offer the same basic benefits, no matter which insurance company sells it. So, Medigap Plan F has the same set of benefits regardless of insurance company or location.
Exactly How Much Will a Medicare Supplement Cost You?
The amount you pay to get a Medigap coverage is determined by the plan you pick and which insurance carrier you use.
Plan B offers a unique pair of benefits then Plan F and monthly premiums vary depending on your coverage. In general, Plan B, which offers the fewest benefits has the lowest premiums. Medigap plans that offer more benefits, such as Plan J, usually have a higher premium. According to the Medicare Rights Center, the most popular medicare supplement are C and F, because they cover major benefits and are less expensive than many other plans.
The government does not regulate what and insurance company can charge for a plan even though they do regulate the benefits. Every insurance company will charge a different premium for the same amount of benefits.
If you have an advantage plan, is Medigap Appropriate?
As long as you are enrolled in a Medicare Advantage Plan, you do not need to buy a Medigap policy. In fact, it is illegal for anyone to sell you a Medigap insurance policy if you are in an advantage plan. The benefits offered by a Medigap policy are handled by your advantage plan and the Medicare supplemental insurance does not pay for your advantage plan’s deductibles, copayments, or coinsurance.