Understanding Medigap Medicare supplemental insurance policies
Medigap Medicare supplemental insurance eliminates the unexpected financial obligations that often come with medical costs. Medigap Medicare supplemental insurance is a completely private package that senior citizens can add to their regular Medicare package to help pay for expenses that are not covered under their root policy. When senior citizens have a Medigap policy they are able to pay for coinsurance, deductibles, home nursing care, travel insurance, and Part 2 excess charges.
Understanding the basics of Medigap
To fully understand Medigap the first thing to understand is Medicare. The basis of Medicare is that it is a government supplied insurance package that is available to citizens who are 65 years or older as well as some people who are younger than 65 who meet specific prerequisites. Original Medicare, as it is called, is made up of two different parts; Part one and part two. Part one specializes in covering in-hospital stays, hospice care, as well as long-term home-based health services. Part two is specifically initiated to cover regular doctor visits, trips to the emergency room, outpatient care that often occurs from hospitals, as well as preventative such as vaccines and shots. On its own accord Medicare can cover over 80-85% of the approved costs of services that you will accrue as a senior citizen. If you do not possess a supplemental form of insurance (which is also called Medigap), obviously you must pay for that remaining 15-20% out of your own personal savings.
Supplemental insurance is available through many different places. For example, you can get it from local insurance firms, each of whom will provide a different plan at a different monthly rate. Senior citizens have the ability to choose from as many as 10 supplemental policies, these are labeled plan A all the way through plan N. Since plans are general and standardized, most the time the benefits that each plan carries with it are extremely similar in supplied benefits. So for example, plan one at Company A will offer almost identical benefits to plan one at Company B. With this in hand it does not mean that Medigap Medicare supplemental insurance is charged the same across all companies. But it does mean that if a company is asking a senior citizen to pay a higher rate that does not necessarily mean that they are getting a better package. Premiums are different for a wide array of reasons; this can include the size of the insurance company, the reputation that that particular company holds, as well as the customer service and the pricing that they demand for your age. Some companies raise the prices applicants get depending on their specific situation, while other companies offer a flat rate to senior citizens regardless of their age or economic station.
The best way to choose a supplemental plan
Many factors influence the perfect supplemental insurance package for you. This can include your age the type of lifestyle that you engage in, your specific medical history, as well is your income. The most pragmatic step before choosing the right Medigap Medicare supplemental insurance for you is to speak to a trusted doctor or even a financial consultant that can help you for your particular needs.
For example, if you do not have a lot of money saved, a comprehensive supplemental package is probably the best option even though the monthly charges will be higher. This extra cost per month will allow you fewer financial surprises should you become sick and have to see a doctor. One of the most thorough packages that are offered is call plan F. This also happens to be the most popular plan among senior citizens. Plan F covers your part one and part two coinsurance and deductibles, as well as any superfluous payments from part two, including foreign travel emergency insurance and nursing home care.
For those in optimal health with fantastic financial preparation, a basic policy like plan one can offer enough benefits to do away from expensive coinsurance fees. Of course since the package is less comprehensive than a package such as plan F, one must first carefully consider their specific situation and insurance options.
For senior citizens who enjoy superb health a high deductible package is often the best option. These packages, which also include plan L and plan K, as well as a high deductible variation of plan F, offer full coverage but only after a set annual payment has been met. For example, if we were to look at a high deductible plan F, you would have to pay something like $1000 yourself before you can receive any of the benefits of this plan. After that $1000 deductible has been reached you will then receive all the benefits of the regular plan F.
Carrying on with this mode of thought, plan L and plan K work slightly different from plan F. With these plans Medigap Medicare supplemental insurance allows you to receive partial coverage for certain services if you are paying the annual amount. In the year 2012 that out-of-pocket limit for the K plan is $4600. For the L plan it is $2300. Before a senior citizen reaches their self-paid limit, plan K will kick in and cover their hospital insurance rates as well as 50% of their coinsurance for almost all Medicare covered services. Before that person is able to reach their L plan self-paid limit, their supplemental policy will kick in and cover their hospital coinsurance as well as 75% of other expenses that will inevitably arise.
In the end, it is very important for you to research all your alternatives before choosing the right Medigap Medicare supplemental insurance package. Legally Medigap companies are not obligated to offer their clients all 10 plans so it is best to search around and look at every plan before you settle on the right package for you. The best place to do this, of course, is through a website like this one, where you can compare your options online, take that to your doctor and financial planner, and together choose a plan that fits with your medical needs and specific budget requirements. To start choosing a Medigap Medicare supplemental insurance plan, please just enter your zip code in the box at the top of this page to get started.