5 Things You Need to Know About Medigap Insurance

Medigap insurance is designed to help you during doctor visits. Although at first glance, how it works may seem unclear. To help clear up some common misunderstandings, take a few moments to learn more about it.

1. What Medigap is All About

Medigap is also called Medicare Supplement Insurance. It?s a private insurance you can buy to help offset medical costs that Medicare doesn?t take care of. Copayments or deductibles and coinsurance of services covered under the original Medicare are some examples of costs that would be absorbed by a Medigap policy.

2. What Medigap Doesn?t Cover

Medigap doesn?t pay any costs associated with an independent Medicare Prescription Drug Plan or a Medicare Advantage Plan. Nor does it pay any costs associated with benefits from TRICARE or the Department of Veterans Affairs (VA), or for union or employer-based group health coverage. If you have Medicaid or a Medicare Advantage Plan, you can?t buy a Medigap insurance policy. When you purchase a Medigap policy, the words: ?Medicare Supplement Insurance? must be prominently displayed on the front of the document.

3. Medigap Eligibility Requirements and Estimated Cost

You must have both Medicare Part A and Part B to be eligible for Medigap insurance. A typically monthly premium on your Part B could cost $100 or more. You?ll also have to pay a premium to the insurance company where you purchased Medigap insurance.

4. Insurance Companies and Medigap Policy Types

Either Plan A, Plan C or Plan F Medigap policies must be made available by insurance companies who sell Medigap policies. Plan D and G policies issued before or on June 1, 2010 and Plan D and G policies prior to that date have different benefits. If you happen to have an older policy, such as Plan E, H, I, or J, you don?t have to purchase a new one, however, they are no longer sold. Medigap plans are regulated by the government. If you buy a California Medicare supplement, it will give you identical coverage as the same Florida Medicare supplement. In other words, Medigap Plan A is the same no matter where you reside, as is Plan B, Plan C, and so on.

5. It?s Best To Compare Policy Letters and Associated Benefits

Before you buy a Medigap policy, take ample time to compare the cost and benefits of the types of insurance offered. Typically, letter A policies are more affordable. Letter F policies may cover more benefits, including an out-of-pocket limit, but you?ll pay more for it. Letter C policies are moderately priced in-between letter A and F. Because of this, a letter C policy will typically offer you more benefits than a letter A policy. Keep in mind though that not all policy letters are sold in every state.

Medigap insurance helps you manage your finances by limiting your direct out-of-pocket expenses during doctor visits. The more you understand about Medigap insurance, the more likely you are to make the best buying decision that meets your complete health care needs.

Source: http://www.leerogers2012.com/5-things-you-need-to-know-about-medigap-insurance/

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