Many people find Medicare to be an excellent economical option for their health insurance. Since Original Medicare is basically an 80:20 plan with deductibles and copays, online enrollment Medigap plans are used to cover these gaps and provide a Maximum Out of Pocket cap.
A Medigap plan is a supplemental insurance policy that provides you with secondary coverage of medical expenses Original Medicare doesn’t include. It’s designed to help you pay for emergency room and hospital stay copays, as well as major medical deductibles and coinsurance.
Medigap plans offer supplemental coverage for Medicare beneficiaries. However, before you sign up for any Medigap plan, there are a few things you should know.
Medigap Plans Have Limitations
A Medigap plan is a policy that offers additional health coverage beyond the limits of Medicare benefits. However, Medigap plans are required to meet certain requirements under federal law, but they also come with limitations.
For example, online enrollment Medigap plans can only be used to cover Medicare approved expenses above the Part B deductible. The test is: if Medicare pays 80%, Medigap will pay all or part of the other 20% (depending on the plan), no questions asked.
Medigap Plans Are Different From Medicare Advantage Plans
Both Medicare Advantage and Medigap plans are offered by private insurers, but they differ significantly. Medicare Advantage plans replace Original Medicare as the primary pay or and may provide additional benefits, such as a Medicare Plan Advantage Part B giveback program. On the other hand, Medigap is a secondary supplemental policy that covers gaps created by copays, deductibles and coinsurance in Original Medicare payments.
A Medicare Advantage Part B Giveback plan is a Medicare Advantage plan that pays some or all of your Medicare Part B premium (currently $170/month). This type of plan is not sponsored by Medicare and can be purchased directly from an insurance company or through an agent.
Medigap Offers A Variety of Coverage Plans
There are online enrollment Medigap plans from A–N covering different components of Medicare deductibles, copays and coinsurance. Plan G covers the most. While plans from all private carriers are identical, the premiums vary based on each carrier’s loss experience in a zip code or coverage area. Before enrolling in any Medigap plan, you should decide what benefits you are seeking and which plan is best for you.
During this consideration, you should factor in your current and possible future health conditions. It may not be easy to switch plans once you have selected them.
Different Insurance Companies Across States Offer Different Plan
Before selecting your Medigap policy, you should call your State Health Insurance Program (SHIP) and ask which carriers offer plans in your state. Often, they will provide you with free information in finding a Medigap policy in your state.
You could also call your State Insurance Department, family, an insurance agent, or the insurance companies to quickly consolidate your decision on a particular policy.
Health insurance plans can be extremely complicated, and it is often difficult to understand what an insurance plan covers and does not cover. The Medigap plan, however, is basically a type of add-on to Original Medicare and is provided by a private insurance firm.
Online enrollment Medigap plans have many coverage advantages a maximum out of pocket cap and including coverage of hospitalization, emergency medical services and major medical deductibles, copays and coinsurance without any in-network requirements.