Medicare Supplemental Insurance
Also known as Medigap Insurance, medicare supplemental insurance is a popular policy among seniors who want more protection than Medicare alone can provide. It's a smart purchase for the price, but it's essential you go into it knowing what you want, and what you need. Medicare supplemental insurance is an affordable way to lower your out-of-pocket health care expenses and extend your coverage. How Medicare Supplemental Insurance Works
Medicare is the basic health plan Americans over 65 (and some younger) rely on for the bulk of their health care needs. However, this care is limited, and Medicare supplemental insurance is a means of extending coverage and reducing out-of-pocket expenses. Medicare supplemental insurance comes in 10 standardized Medigap plans. The plans are referred to by letter (A-J) and vary in price and coverage. Plan J has the most coverage, and Plan A the least.
Each plan is standardized. This system makes it very easy to compare policies, because every plan must carry the same coverage, no matter who is selling it. Plan A from one insurer offers identical coverage to Plan A from another insurer, plan B from one is equal to B from another, and so forth. Not every plan is offered in every state.
Why Medicare supplemental insurance is so important Medicare provides older Americans with a lot of health care security. But benefits are limited. Medicare doesn't cover prescription drugs and preventative medicine, and many medical expenses, like hospital stays and skilled care, carry large deductibles. (For example, in the event of hospitalization, you must pay over $800 before Medicare pays anything.)
Just one serious illness (or even one large annual prescription drug bill) can take a dramatic financial toll, even with Medicare coverage.
That's where Medicare supplemental insurance comes in. The various Medicare supplements provide coverage for the following:
- 365 extra days of hospital care
- 3 pints of blood.
- The Medicare deductible.
- The Medicare coinsurance or copayment
- Costs above the Medicare maximum annual payout
- Prescription Drugs
- Foreign Travel Emergency
- At-Home Recovery
- Skilled Nursing Coinsurance
- Preventative Care
Not every Medicare supplemental insurance plan covers each of these benefits. The first three benefits are the "core benefits" found on every plan. The rest are add-ons, and with each increase in coverage comes an increase in cost.
Are you eligible for Medicare supplemental insurance? Perhaps the most important thing to learn about Medicare supplemental insurance is how the eligibility works.
You can only buy Medicare supplemental insurance if you are enrolled in Medicare Plan B and you are at least 65 years old or are disabled. Once you meet both of these requirements, you have a six month open enrollment period to purchase the policy.
During this time health insurance companies cannot deny you coverage, cannot charge you higher premiums because of health issues, and cannot impose excessive exclusion periods.
After your inital enrollment period is over, you can still apply for coverage during one of the annual open enrollments, but you made be denied coverage or charged higher premiums.
It is very important to apply for medicare supplemental insurance during your enrollment period if you want to guarantee yourself affordable coverage later on. This is especially important If your family has a history of health problems or if you need a lot of high-costing prescription drugs.
Medicare Supplemental Insurance Quotes And Info
Buying medicare supplemental insurance is an important process, and should be undertaken carefully. You want to be sure you're getting enough benefits while keeping premiums affordable. While it's a good idea to evaluate your options before you shop, stay flexible. Not all plans are available everywhere, and even when they are available, you may find them priced out of your range
