Cost Of Supplemental Medicare Insurance
2014 Medicare and Medigap Updates
The Cost Of Supplemental Medicare Insurance
For senior citizens, the chances of medical expenditure rising is very high. As our bodies age we are more prone to illness. In addition, to maintain good health we require checkups. For those who are retired and depending on a pension, this can easily deplete our governmental medicare plan and force us to use hard earned savings (goodbye to that holiday) to meet medical bills. This is where supplemental Medicare insurance comes in.
The Medicare plans only cover part of one’s inpatient and outpatient costs. There are also many other items they do not cover or only gover up to a certain amount. For this reason most people will probably require supplemental coverage, which is what Medigap offers. Medigap health insurance covers are offered by insurance companies. The cost of supplemental Medicare insurance will therefore depend on several factors. Unlike the medicare policies which are sponsored by the federal government, Medigap policies are offered by independent insurance companies. However, all Medigap polices are regulated by government specifications.
One factor that affects the cost of supplemental Medicare insurance is the insurance company. Different companies have different plans and charge different premiums. These premiums may vary quite significantly from company to company and it is important for anyone seeking a policy to carefully review several policies before settling for a particular one. Although the prices vary, the chosen plan will have the exact same coverage with every company. This means it is wise to shop around.
There are 12 Medigap plans, normally referred to as Plan A to Plan L and the cost of supplemental Medicare insurance will depend on which plan you choose. Each plan has its specialty and its specific benefits. When you decide to take a supplemental plan, be sure to explain your specific needs to the insurance agency salesperson to enable them to help you identify the most appropriate plan for you.
Another factor that affects the cost of supplemental Medicare insurance is the method used to determine the premiums. There are three methods. For the attained age premium, the amount paid increases with age. This means that at registration, the premiums are fairly low but by the time a citizen attains the age of 80, the amount will have increased significantly. For community rated premiums all the people in a specific geographical region are charged the same premium, regardless of age. The premium is determined by perceived health risks in the area. Issue age premiums are determined by the age at the time of enrollment. Enrollment at an advanced age attracts higher premiums but they do not increase with age after that.
Supplemental insurance policies are mainly for older citizens and are meant to fill the gap left by the original medicare coverage. As such, the cost of supplemental Medicare insurance is normally much lower than that of the normal coverage, though in many cases it actually offers almost as many benefits as the original. Be sure to go through the benefits and premium payments of the different plans to ensure you get value for your money.
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