Health insurance never covers everything. Neither does Medicare. You will need to meet deductibles, copays and coinsurance. So, what is a Medicare Supplement? A Medicare Supplement is a type of health insurance sold by private insurers to cover the gaps in Medicare. This is why we refer to the plans as “Medigap Plans”.
Medigap picks up where Medicare leaves off. It serves to pay for the costs that normally Medicare would pass on to you. You must pay for these when accessing medically-approved services. If you don’t have retiree benefits or an employer health plan you will want to consider a Medigap plan. If you stay on original Medicare, paying 20% of those things adds up quickly. Medicare has standardized Medigap plans and will pay on any approved Medicare service.
Medigap plans or Medicare supplement plans give you freedom of access:
Freedom of travel
You can see any provider in the country who contracts with Medicare.
No referrals or networks
Predictable costs
On Plan G, you must meet a small annual deductible then your approved visits are covered. No doctor visit copays are owed.
You have a 6 month window to enroll once you have activated your Medicare Part B. So, don’t procrastinate. Contact the Social Security office today! If cost is an issue, look to see if a Medicare Advantage plan is right for you.
What is Not Covered by Medicare Supplement Plans?
Medicare Supplements only pay after Medicare has first paid its share. If Medicare approves a claim and pays the part that Medicare owes, it will forward the remainder of the bill to your Medicare Supplement.
Some things that are not covered by Medicare or your Medicare Supplement are:
- Routine dental, vision and hearing exams
- Hearing aids
- Eyeglasses or contacts
- Long-term care or custodial care
- Retail prescription drugs
Choosing a Medicare Supplement
Since Medigap plans by law are standardized, no matter the company you purchase your supplement from, you will know exactly which benefits you are purchasing. There are several factors which you will want to know about each insurance carrier before you choose your Supplement. They are standardized but there are a few really important things to consider before making your choice.
Rates
What is a Medicare Supplement premium? It’s the monthly rate that you pay to the insurance company that provides your Medicare Supplement coverage? Find out what premium each insurance carrier will charge you. Are the premiums low. Are they too low? Sometimes a new carrier will come into the area, low ball every other carrier, then raise their rates a year or two down the road.
Rate trend history
This is why you need to know why the rates are too low. Most policies will have an annual rate increase to keep up with medical inflation. What kind of rate increases has the carrier you are considering had over the last 3 years? Choose a carrier who has been in your area for a long time so you can gage the history of their premiums. Have they been steady? Are the rate increases significantly higher or lower than their competitors?
Financial ratings
A number of ratings companies dig into the financial stability of each insurance carrier. These companies provide information on the fiscal health of the insurer. We will only recommend A rated carriers to our clients. Consider this information when making your selection.
To further understand Medicare, watch our YouTube Channel videos HERE on everything Medicare.
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