Benefits of Medicare Supplement Insurance Plan

The Medicare health insurance plan has been around for nearly six decades. It provides health coverage for American citizens who are above age 65 and to certain other categories. These include those with disability status as determined by the Social Security Administration, persons with end stage renal failure, and lateral sclerosis

Currently, more than 65 million Americans are covered by Medicare.  The plan is divided into four parts, A, B, C and D. Each one of these categories covers a specific aspect of health care services or prescription medications. Those who enroll in the plan have to pay a premium according to the regulations that govern each of the parts of the program. Several different options and combinations of the different parts are available to those who enroll.

Statistics reveal that nearly 11,000 Americans attain the age of 65 every day. Medigap is a boon that is readily available to this section of the population.

There are two options once you enroll for Medicare. One is the Original Medicare plan which covers parts A and B, where the beneficiary pays for services as they’re availed of. You can add drug coverage under part D to this option. This plan covers most but not all of the medical situations that may arise. To fill the possible gaps, an additional program is available. This is the Medicare Supplement Insurance or Medigap plan.

What Is the Medicare Supplement Insurance Plan?

Medicare was originally not designed to cover all the healthcare costs that a person over 65 would have to incur. Hospital admission is the biggest chunk of coverage, but many other costs such as long term care or physician services. Some studies estimate that Medicare covers about 48% of all personal healthcare expenses. A wide range of services has been excluded under Medicare, but that doesn’t mean that people don’t need them. Items such as outpatient prescriptions, custodial care of the elderly, dental, vision and hearing care are costs that have to be borne by the individual. It is precisely to fill this lacuna in the system that Medigap has been conceived. It’s important to consult a reliable source such as Allstate Medicare supplement reviews before you sign on the dotted line.

This policy is private medical insurance that can be tagged on to an existing Medicare plans A and B. It is also known as Medigap. Medicare does not cover certain costs such as co-pays, deductible and co-insurance. These are unavoidable out of pocket expenses that arise during treatment and hospitalization. Though the Original Medicare part C (Medicare Advantage) does cover some of these costs, Medigap can be used to bridge the gaps.

• Persons who opt for Medigap must already be enrolled in the Original Medicare parts A and B
• Medigap does not replace Original Medicare
• Beneficiaries must pay premiums directly to the private insurance provider
• There are 10 packages under Medigap, from A to N
• Some of these plans are older ones that are not currently available (C, E, F, H, I, J) but if you had purchased them earlier, you can continue with them if your insurance provider still offers them
• You can compare and contrast premium rates and coverages under each plan available with different insurance providers and choose the one that suits you best
• Insurance providers of Medigap get claims-information directly from Original Medicare B
• Medigap usually may not cover dental or eye care costs, hearing aids, prescription medication, long term or private nursing
• You can begin purchasing Medigap plans once you cross age 65 and after the first month of purchasing Medicare plan B
• Medicare pays its eligible portions first and then Medigap kicks in to fill what is left over

Benefits of Medigap or Medicare Supplement Insurance Plan

The main advantage of Medigap is that these plans cover costs that may not be covered such as deductibles, co-pays or co-insurance.

• Medigap plans help you to almost completely take care of out-of-pocket expenses
• When you enroll after you cross 65 years of age, no insurance company can exclude you based on pre-existing medical conditions
• If you are traveling out of the US, Medigap can be used to avail of emergency health care services
• You can choose the plan that best plan that suits your own individual preferences, budget and lifestyle
• These benefits are paid directly to the policy holder, unless they are assigned otherwise. This way, you get help to take care of household expenses, bills, child-care, travel and more
• Medigap plans are cost-effective and packaged affordably
• There are various plans offered by different insurance companies that include cancer, stroke, heart attack, hospital indemnity and more
• If your employer doesn’t provide supplemental health insurance, you can opt to buy your own plan
• You can purchase supplemental plans at any time of year in some states. This helps you to plan your expenses and financial out-go’s more accurately
• In other states, you will have to check when the enrollment time opens. If you are not able to buy during this window, your costs will be higher
• Some insurance companies offer good discounts under certain circumstances. For instance, some may offer discounts on premium for people who don’t smoke, or those who pay annual costs upfront. Women may get better rates, since they are deemed to have lower healthcare costs
• Discounts can range between 3% and 14%
• Many employers provide Medigap coverage on retirement to employees
• Some insurers offer free preventative screening facilities
• This plan helps you to maximize your Health Savings Account
• You have the advantage of staying ahead of the curve by anticipating health events and providing for them
• Medigap is a great policy to take if you are planning to travel both within and outside the US or go on a cruise
• This plan works in all states across the US and you don’t need a provider network if you are not opting for a Medigap Select plan
• You can buy separate Medigap policies for your spouse and yourself
• Standard Medigap plans are renewable regardless of your health problems. The insurance provider is not allowed to cancel your plan as long as you remain up to date on payment of the premium
• All Medigap plans are regulated by Federal and state laws. This is designed for your protection. Your Medigap policy must clearly state that it is a Medicare Supplement Insurance policy

Conclusion

While purchasing Medigap insurance policies, it’s wise to shop around and select the right plan. Get quotes from several providers and check with accredited and well-established brokers only. Since Medigap plans are sold by private insurers, you could face high-pressure selling tactics to compel you to buy insurance that you neither want not need, and policies that are not relevant to you.