Should I Enroll For A Medigap Plan?

Many people do not know how important it is to get supplementary coverage in addition to Medicare.

Millions of Americans rely on Medicare to help them with their basic health needs during retirement. However, Medicare does not cover everything, and even if it covers a particular service, it often does not pay 100% of the cost. Therefore, many Medicare participants are seeking additional insurance coverage in the form of a Medigap Plan to secure their funds from unforeseen health care costs.

Next, we will examine why Medigap plans can be useful and if you should consider one for your situation.

What does Medigap plans do?

Medigap policies, also known as Medicare supplement insurance, can help pay for some of the costs of medical care that are not covered by Original Medicare. These expenses include co-payments, deductibles, and co-insurance under Medicare. Medigap policies are sold by private companies. Generally, they will pay part of the total cost of the policy after Medicare has paid the approved amount for the services you need.

To obtain a Medigap policy, you need Medicare coverage in Parts A and B of the policy. The Medigap policy includes an additional monthly premium that you pay in addition to your regular Part B premium.

Medicare Supplement Plans 2019It is important to understand that even Medigap plans do not cover the entire gap in Medicare coverage. For example, they generally do not cover long-term care, vision or dental services, hearing aids, glasses or private care services.

Comparing Medigap plans:

An interesting aspect of Medigap plans is that they are regulated by the government. Insurance companies can only sell plans with certain characteristics. For people in most parts of the country, there are 10 different types of Medigap plans, each marked with a letter. Each plan offers different covered services in different combinations, and you can choose according to your needs.

For example, Medigap Plan F offers additional comprehensive coverage, which includes coinsurance payments and hospital costs for a full year after the benefits of Medicare have been used. You also pay 20% coinsurance for Part B medical expenses, which Medicare does not pay, and various copayments, deductibles, and coinsurance for many other areas of Medicare. Plan K only pays about 50% of the cost of co-insurance and Part B benefits, qualified care co-insurance, Part A hospice care, and Part A deductibles that are not covered by the plan.

In practice, this means that most participants pay 10% of the cost of Part B, which is half of the 20% that Medicare does not pay. A disbursement limit of $ 4,960 is applied to limit the potential risk for those who choose the less comprehensive option.

Do you need a Medigap policy?

An amazing thing about traditional Medicare for many older people is that there is no unanimous maximum. If you receive a Medigap Plan, you can be sure that, regardless of what happens to your health, you have an upper limit on the amount of your own money you will spend.