2014 Medicare and Medigap Updates
If you are eligible for medicare and would like financial peace of mind for future medical bills you should check into a medigap supplement policy. These insurance policies are written by private companies but are highly government regulated to see that the premium holder is protected and completed covered under the type of policy they chose to purchase.
Medigap supplement insurance is a backup policy that takes over where medicare stops paying. Though government sponsored, medicare is like most private insurance policies you buy; they only pay a certain percentage. Most of the time it is somewhere around 80%. However, as you grow older you are more prone to have medical problems and some of them can require long term care or stays in the hospital. With today's skyrocketing medical cost you could easily be left owing a very large sum of money even after medicare pays their share.
A medigap supplement policy must be purchased from private insurance companies. Though the plan coverage will be the same regardless of which company your buy from, the cost can vary greatly. Though these plans are heavily monitored by government agencies to see the medicare recipients get the full coverage they are paying for, the price of the coverage is not monitored. This means each company will have a different premium even though the coverage is the same.
Below are a few things you may want to know about a medigap supplement plan.
A medigap supplement plan is only available to individuals who have both medicare plans A and B. Medicare plan A is free but you will need to pay a premium for plan B which will be deducted from your monthly medicare check.
There are 12 standardized medigap plans available. Each plan covers the exact same medical items regardless of which insurance company you purchase them from. Since this is true, price shopping should always be done.
Each medigap supplement plan is for the individual on the plan only. Spouses are not covered and must have their own plan.
For the best price and guaranteed coverage the medicare recipient needs to enroll within a six month period of when their medicare coverage begins. If this is done no physical is required in most instances. Pre-existing conditions are also accepted at during the alloted enrollment period.
A medigap supplement plan can be a financial lifesaver if a long term medical emergency arises. If you are now eligible for medicare and do not have a supplement policy you should check into the cost of one. Medgap cost will vary but will be considerably cheaper than you would pay for a plan if you were not covered by medicare. With the large number of plans to choose from you can usually find one that fits your particular medical needs and financial situation.
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