What is a Medigap Policy
2014 Medicare and Medigap Updates
What is a Medigap Policy?
Those looking for supplemental healthcare plans must have asked the question “What is a Medigap policy?” countless of times but the incoherent complexity of the system can make it a daunting challenge for anyone to definitely understand it in one go. As such, we’ll cover the essential answers to “What is a Medigap policy?” in this post to simplify the near Herculean tasks of picking out the supplemental healthcare policy for you and your family.
Medigap Policy Defined
A Medigap policy is a healthcare plan that supplements your existing subscription to Medicare. It is not meant to cover the basics of hospitalization or outpatient fees; rather, it is supposed to kick-in where Medicare is insufficient. As such, anyone who signs up for Medigap must first be a Medicare policy holder.
The Many Types of Medigap Policies
Now that you know what is a Medigap policy, it would help to dig a little deeper into the options that Medicare owners have when selecting the best Medigap policies. As of June 2011, there are 10 types of Medigap policies available. These are named Plan A to Plan N but Plans E, H, I and J are no longer available. The plans differ in coverage and premium pricing and progressively go up as the letters in the plan name change. In short, Plan A provides the most basic coverage at the cheapest price while Plan N is the most expensive with the most extensive coverage options.
It also helps to know that Medigap policies are governed by federal laws on healthcare; hence plans of the same name, regardless of who is offering them, provide the same coverage. However, pricing is almost always different depending on many factors. As such, the goal of most Medigap policy buyers is to find the best coverage that will fit their budget. That means getting the cheapest available policy offers for a specific plan.
Medigap Policy Pricing Strategies
Companies use three basic methods to price their policies: community-rated, age-rated, or age-attained rated. The first one offers the same price for a specific policy regardless of the age of the owner while the second is entirely age-dependent. The age-attained policies change premium pricing per yet normally at an increment of 5%-7% per year depending on the policy.
Tips on Getting the Best Medigap Policy
Pay attention to these tips to move beyond asking “what is a Medigap policy” to being knowledgeable enough to pick a Medigap policy for yourself or a loved one:
1. Determine what plans suit your needs best. It is useless to buy excess coverage and pay a higher price if it is not necessary.
2. Lowest pricing is almost always the best for the same plan. If you can get $350 on Plan M instead of $420, then go for the lower price. The coverage is just the same.
3. Do not miss your designated Medigap enrolment period. During this period lasting six months beginning on the first day of the month you turn 65 and while still holding Medicare Part B, companies are mandated to accept your application regardless of any medical precondition. After this period, they can choose to deny applications for Medigap policies.
Knowing the answer to “what is a Medigap policy?” and how to choose the best policies is critical to maximizing your healthcare benefits. With the extensive resources on the internet and from healthcare insurance providers, it does not take much effort to research about Medigap policies. By reading on, you should be able to determine “what is a Medigap policy” and apply very specific concepts to your advantage so you can pick the best plans at the lowest cost.
If you have an interest in acquiring a Medigap policy and knowing exactly what Medicare does and does not pay, be sure and read more of our huge selection of articles. We do try to stay updated and hope this article on - what is a Medigap Policy has be informative.