Some people require Medigap policies to supplement their Medicare coverage.
Medicare provides medical coverage for senior Americans.
About 62.3 million individuals are enrolled in Medicare.
Many people require more coverage than what they receive through Medicare.
According to a recent CNBC article titled “A ‘Medigap’ policy picks up some costs that Medicare won’t. Here are tips for choosing one,” a Medigap can help provide this.
About one-third of individuals get an Advantage Plan to cover their Part A and Part B plans.
The other two-thirds typically use the original Medicare Part A and Part B plans with Part D added.
Medicare Part A provides hospital coverage.
Medicare Part B provides outpatient care.
Medicare Advantage plans typically provide vision and dental coverage, as well as out-of-pocket limits.
Medicare Part D includes prescription coverage.
What does a Medigap plan do?
It lowers your out-of-pocket costs.
When should you get a Medigap policy?
After you enroll in Medicare Part B, you should purchase a Medigap policy within the first six months.
If you wait longer, you will likely be required to go through “underwriting” to qualify.
What does this mean?
The insurance company will review your health history before it approves you for a plan.
When searching for a Medigap plan, consider how premiums are rated.
With a community rated policy, all purchaser pay the same premium.
A plan based on “attained age” means the rates will increase as you get older.
The rate for “issue age” plans are based on your age when you purchase the policy.
Even if you have a set premium, they may rise due to insurer increases or inflation.
Some carriers provide a discount if you have two purchasers in the same household.
It could save you between 3 percent and 14 percent.
Although a Medigap policy can save you money on healthcare costs, you should review your options to select the right plan for your needs.
Reference: CNBC (June 15, 2020) “A ‘Medigap’ policy picks up some costs that Medicare won’t. Here are tips for choosing one”