Choosing a Medigap Policy
2014 Medicare and Medigap Updates
Choosing a Medigap Policy
With the serious limitations on coverage surrounding standard and advanced Medicare, it is only fitting and largely expected that many people worry about choosing a Medigap policy. Obviously, Medigap stands as your supplemental coverage in the areas where Medicare fails you, thus it is only expected that your Medigap doesn’t fail you as well.
Your first consideration prior to choosing a Medigap policy is understanding the shortcomings of Medicare so you can pick a Medigap policy that suits you. In summary, Medicare Part A covers inpatient care in hospitals as well as providing partial coverage for skilled nursing facilities and some degree of health care while Medicare Part B takes care of doctor’s services, outpatient care, and preventive services for maintaining health. Anything not captured in these two policies are the target coverage for the various Medigap plans that you see on the market.
One important thing to remember is that Medigap does not supersede Medicare, rather it only supplements it. You will need to first seek coverage from Medicare for certain medical procedures before choosing a Medigap policy to cover the areas where Medicare is deficient.
Once you understand the limitations of Medicare, you can start studying the various types of Medigap policies so you can choose the one that’s right for you. Plan A acts as your hospital coinsurance taking effect where Medicare Part A is insufficient while Plan B works as a supplement to Medicare Part B. Plan C covers Plan A and Plan B offers as well as skilled nursing coinsurance, Medicare Part A and Part D deductibles, and foreign travel insurance. Plans D, F, G K, L, M, and N simply build on all of these areas with certain requirements.
Find a Medigap summary sheet to help you condense all of these covered areas into one easy to look at reference. Choosing a Medigap policy then becomes a question of finding a plan that suits your needs. Obviously, as the coverage increases the premium does as well. If you have excess money to spend on insurance, you can always get Plan F which provides the most comprehensive Medigap coverage but being more deliberate is a much better alternative. If you only look to choose policies that cover specific areas where you need supplementary insurance you will save a lot of money.
The next step in choosing a Medigap policy is to find the right company that offers the best pricing for a specific policy. One thing you can count on is that by virtue of federal law, all Medigap plans of the same name have the same coverage regardless of who and where they are offered. Your task is to find the cheapest policy on a specific plan of your choice. Various companies use different methods to calculate their premium prices and each method can be advantageous for certain groups and disadvantageous for others.
Premiums calculated using the current age of the premium owner will be more expensive for seniors to buy while policies whose premiums are not age-based are best for seniors. Choosing a Medigap policy has to consider these factors so you can pick the best policy at a competitive price.
There are more than enough companies that offer Medigap policies to keep the premium prices competitive. Go out of your way to find right package and take your time choosing a Medigap policy so you are sure of your ultimate policy purchase.
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