For many Americans, paying medical bills by dipping into their pockets is a challenge. According to a report published by Milliman Inc., healthcare costs have been rising by at least 7% for the last five years. Although the Original Medicare coverage does come in handy, it does not cover all hospital expenses. Estimates contained in the Milliman report show that out-of-pocket costs grew by 9.2% in the past year alone. To plug this gap, it is advisable to purchase Medicare supplemental insurance plans. These plans take care of medical expenses not covered by the Original Medicare. Read on to find out how you can benefit from Medigap.
Types of Medicare Supplemental Plans
In general, healthcare insurance companies offer 10 Medigap plans. However, there are four plans that insurance companies no longer sell. These are plans E, H, I, and J. For people that had purchased the plans prior to June 1, 2010, the policies are still valid. It is also important to note that some states do not offer all the Medigap plans. When it comes to selling Medigap policies, Plan A must accompany any policy. This is in addition to offering Plan F or Plan C. If you have an existing health problem, the insurance company can refuse to sell you a policy. People with a preexisting medical condition can buy a Medigap Plan only under two special circumstances; one is through guaranteed issue right and the second one is during Medigap open enrollment period. Co-payments and deductibles depend on the type of plan you choose to purchase. Most people opt to purchase Plan F since it offers coverage of excess charges, deductibles, co-pay, and coinsurance.
What You Need To Know Before Buying Medigap Policies
In order to purchase a Medigap Policy, you must have Medicare part A and part B. On the other hand, people with a Medicare Advantage Plan cannot buy a Medigap Policy. This is not the case if you are planning to revert to Original Medicare. To ensure that you get coverage after the end of your Medicare Advantage Plan, start the process of purchasing a Medigap policy in advance. You can buy these policies from licensed insurance companies. Before choosing a particular plan, use premiums from different companies to compare costs. For couples, everyone will have to buy a separate policy. This is because Medigap Plans only cover one person. Unless you bought your Medigap policy before 2006, you will have to cover prescription drug expenses out-of-pocket or purchase Medicare Part D.
According to figures published by the US Census Bureau, baby boomers make up one-third of the total US population. Medical expenses for senior citizens alone account for one-third of the healthcare budget. These statistics show the importance of having healthcare insurance. On top of your Original Medicare Plan, you should have Medicare supplemental insurance plans. These will cover costs that you would have paid out of your own pocket. View alternatives to Medigap policies.
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This will ensure you get an affordable policy that covers your medical needs adequately. Enter your zip code into a quotes tool above to compare plans.