Medigap Insurance Plans
2014 Medicare and Medigap Updates
As people reach the age of eligibility for medicare they of course become curious about medigap insurance plans. Many people are not really certain what they are, they have just been told by friends or relatives that they are going to need it.
What medigap insurance plans basically do is fill the financial gap left by medicare when an accident or illness occurs. Although plans medicare plans A and B cover most of incurred medical bills, they only pay around 80% of them. If the hospital stay is only a couple of days this may not amount to more than a few thousand dollars. However, if it turns into an extended stay it could leave the patient owing up to tens of thousand of dollars. For many retired people just one extended stay in the hospital could wipe out all of their savings. This is when medigap insurance plans come in very handy.
In order to purchase a medicare insurance plan, or medigap as it is called, you must have medicare plan A, which is free, and plan B, for which you are going to have to pay a premium. You also need to enroll in the plan within 6 months of your medicare eligibility. Otherwise, you will probably have to pay a higher price plus take a physical which is not required if it is done within the prescribed period.
When you start looking into medigap insurance plans there are a few things you need to be aware of. The main thing you need to know is that all plans are equal no matter what the premium. In other words, you need to shop around for the best price.
Although the government does not have anything to do with writing the polices, they have rules and regulations the insurance companies must go. These regulations are made to protect the individuals on medicare and they are strictly enforced.
All insurance companies make their own decisions about what price they want to charge for a medigap policy. However, government regulations require that they all must give the same coverage for whichever plan the medicare recipient selects. In other words, if someone were to purchase plan A, they would get the same coverage no matter what company they purchased it from or what the premium cost was. This is why it is wise to shop around for the best price.
If you would like more information of medigap insurance plans be sure and read a few more of our many articles on the subject. You may also want to bookmark our page and check back occasionally as we are always adding new information.