Can you afford to pay almost $4,000 a day for a hospital stay if you’re injured or fall seriously ill?
Fortunately, if you’re a US citizen and over the age of 65, you won’t have to, thanks to Medicare health insurance. Unfortunately, you might still have to pay some of the costs involved even if you’re signed up for this healthcare program.
That’s where a good Medigap plan comes to the rescue, find out how to choose the best one here.
What is a Medigap Plan?
Medicare Part A and Part B only cover the necessities when it comes to healthcare. You can count on this medical insurance to pay for the following health-related costs:
- Medicare Part A will pay for nursing facility care, inpatient hospital stays, and limited home health care
- Medicare Part B covers medical supplies, preventive care, outpatient care, and some doctor’s services
These benefits are still subject to copays and deductibles and don’t cover some things like out-of-network care and long-term care.
Medigap plans exist to fill in these ‘gaps’, except for the Part B deductible.
What Types of Medigap Plans are Available?
Private insurers sell Medigap plans to people who are members of Original Medicare (Part A and B). If you have aging parents and want to contribute to their ongoing health, buying a Medicare Gap plan is a good choice for you.
There are 8 Medigap Plans, identified by various letters of the alphabet, available to new Medicare members as of 2020.
Insurers don’t have to sell every type of Medigap policy, but every policy they do offer must provide coverage according to state-legislated requirements. The states of Massachusetts, Wisconsin, and Minnesota have different criteria for standardizing plans.
Each type of Medigap plan offers the same basic benefits, and some offer additional benefits. Medigap Plan F was once the most popular choice for these types of supplemental health insurance. However, this plan fell away in 2019, along with Plan C.
The best way to evaluate which one suits you best is to compare your plan choices side by side.
Things to Consider When Choosing a Medigap Plan
It’s important to choose the best Medigap plan for your future as well as present needs. Things can get complicated if you want to switch plans outside of the initial six-month grace period after signing up for Medicare.
Most Medigap plans cover travel within the USA and the best ones help you with a high portion of any medical emergencies in foreign countries too. Now that Plan F’s not available anymore, your best options for international travel are Plan D, G, M, and N.
These are some of the things to consider when choosing additional health cover:
Future Affordability
Insurers in most states set up their Medigap premium prices in three different ways.
Community-rate premiums are the same for everyone regardless of age. Issue-age-rated premiums consider your age when you buy the plan and increase according to inflation every year. Attain-age rated premiums increase as you get older.
Pre-Existing Conditions
After the initial six-month grace period, insurance providers can charge you more if you have a pre-existing medical condition. They can also turn down your application altogether.
Signing up for a Medigap plan is a long-term commitment, so be sure to weigh up all your needs before you sign up for anything.
Make Good Choices
Finding a Medigap plan that works for you is just one of the important decisions we can assist you with.
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