If you are a participant in Medicare or about to become one, it's important for you to understand every aspect of it, including Medigap. Despite what you may think or might have been told, Medicare does not cover everything. There are some services that aren't covered and you will have to pay additional costs like copays and deductibles. Many Americans try to lessen this by finding Medicare Supplemental Plans that will help pay for things Medicare won't.
Before the time comes to enroll, you might want to ask yourself “What does medicare cover?” and “Do I need supplemental insurance?”.
What is Medigap?
Medigap insurance policies are for those who already have Medicare Parts A and B. This helps to cover things that original Medicare does not cover. Supplemental insurances work with Medicare to help provide participants with more coverage for even less.
What is the Most Popular Medigap Plan?
Among all of the different plans the most popular supplemental plan is Medicare Supplement Plan F. Out of all the different supplemental plans 55% of all supplement plan participants are enrolled in Medicare Plan F. Medicare Plans N and C are the next popular and then Plans L and M.
How Do Supplemental Plans Work With Medicare?
Supplemental plans work along side of Medicare to provide additional assistance to participants so they can get the best healthcare possible. What many do not know before signing up for Medicare is the coverage that is offered.
Medigap Benefits and Coverage
Medigap insurance may cover hospital stays up to a year after your Medicare Part A coverage has run out. A supplemental plan might also help to cover the first three units of blood received during a hospital stay, Part A Hospice copayments and Part B coinsurance.
What Kinds of Insurance Plans are Not Considered Medicare Supplemental Plans?
When enrolling in Medicare there's a possibility that you could be automatically enrolled in other types of insurance too. Including your other types of insurance when filling out your initial enrollment questionnaire is super important in order for Medicare to decide which coverage will be used first when paying for services.
When Should You Buy a Supplemental Plan?
Every state has their own timeframes that you can buy a Medigap policy. Within most states insurance providers will only allow you to purchase a supplemental plan at certain times. Outside of this time period if you try to buy Medigap, insurance companies are legally allowed to deny you coverage, limit your coverage or charge you a higher price.
Medicare Supplement Cost
Just like other kinds of insurance each individual company sets their own prices based off of certain criteria. Researching each plan from a variety of companies helps you to understand how every company prices their policies. In general there are typically three tiers of pricing; no-age rated, issue-age rated and attained-age rated policies.
Community Rated Medigap
Community or no-age rated medigap plans calculate your monthly premium without taking into consideration your age. Anyone enrolled in this kind of plan will pay the same amount no matter their age. Inflation may cause your premium to increase, but never due to age.
Issue-Age Rated Medigap
This kind of Medigap takes into consideration the age at which you enroll into an insurance policy. So if a person enrolls right at 65 the premium would differ to that of someone who enrolls at age 72.
Attained-Age Rated Medigap
Attained-age medigap plans increase based on your current age. So when you first enroll your premium will be less and will increase as you age.
Other elements that could affect the cost of your Medigap policy include:
- discounts offered to certain inviduals (non-smokers, married couples, etc.)
- high deductible policy participants
- Medicare SELECT policy holders
Medicare Supplemental Plan Eligibility
To be eligible for a medicare supplemental policy you have to first at least be 65 years of age or older. Existing enrollment in Medicare parts A and B is another requirement before you can even consider buying a Medigap plan.
Help Finding a Medigap Plan
Finding the Medigap provider and plan that is best for you can often be challenging.There are so many different options out there it might be overwhelming to find a plan. For help in your search for the right policy and to learn more about Medicare Supplemental plans, click here.