What You Need to Know About Medigap Policies

9 – Jun24 – What You Need to Know About Medigap Policies – Blog

Medigap policies, as we’ve shared in our previous post, Be Money-Savvy with a Supplemental Medicare Insurance Plan, is an important tool that baby boomers need to have to secure the retirement years. Designed to help policyholders pay for the gaps (out-of-pocket health care costs such as deductibles, copayments, and coinsurance charges) in Original Medicare Plans, a Medigap plan can definitely grant one a higher level of financial security and management throughout the twilight years.

And we’d like more people to be able to reap the many benefits of these insurance policies. We’ve listed down several important factors or details pertaining to Medicare Supplements for you and other readers may need to get a plan!

The Different Standardized Plans

Learning more about Medicare Supplement Insurance coverage may be overwhelming, considering that there are ten standardized Medigap policies to choose from. Now, this is why searching for an agent you’ll be comfortable working with is highly suggested for you when requesting for a Medigap quote or to find a plan that will best address your needs.

Here are some key details that will help you select a Medicare Supplemental policy.

  • The ten Medigap policies are labeled as Plan A to Plan N. The E, H, I, and J plans are no longer offered.
  • Each plan covers these: coverage for Medicare Part A coinsurance fees, Part A hospice care copayments, Part B coinsurance charges or copayments, and the first three pints of blood in a calendar year.
  • Plans differ in premium prices and benefits covered
  • The lowest premiums are usually found in Plan M and Plan N; the highest is in Plan F and Plan G
  • Private insurance companies sell Medicare Supplements – a company that sells these policies must always offer Plan A (which covers the basic coverage)

And more – please discuss pricing with your insurance agent or refer to a Medigap plans comparison chart for more details).

There is a Best Time to Purchase a Medicare Supplement Plan

Additionally, the best time to buy a Medigap insurance plan is during the Medicare Supplement Open Enrollment Period (OEP). Beginning when you turn 65 and are enrolled in Medicare Part B (and lasts for a duration of six months), the OEP presents you these advantages:

  • A private insurance company cannot delay the start date of your coverage
  • A private insurance company cannot refuse you from making a purchase of any of the plans it offers
  • You cannot be charged higher premium rates

Medical underwriting isn’t done during the OEP, allowing individuals with chronic conditions and other health problems a chance to be covered.

It’s a Flexible Solution to Address Retirement Health and Wealth Needs

Since private insurance companies sell Supplemental Medicare Health Insurance policies, applicants can compare Medigap costs in the market. Comparing Medicare Supplement prices will also help a future beneficiary to choose an agent he or she will be comfortable working with.

In effect, the flexibility that Medigap policies provide will help one address the poor financial situation that most boomers are in today. Please let us know if you have any questions on this topic by leaving a comment below.