Are you presently enrolled in Original Medicare? If yes, one method that can help you shoulder expenses your policy doesn’t cover is to purchase Medicare supplement plans or Medigap policies.
In case you’re not familiar with them, these are policies you can buy from private insurance companies. While private carriers sell these plans, the federal government and the state regulate the policies. Additionally, Medicare supplement plans work with Original Medicare (Parts A and B) and aren’t suitable for people with a Medicare Advantage plan.
Nonetheless, these policies allow people to customize their healthcare plan so it can fit their medical needs. But before you sign any contract, consider comparing supplement plans to find out which policy will suit your health requirements. If everything still sounds confusing, continue reading this article and learn why it’s essential to compare Medicare supplement plans.
Who is Eligible for Medicare Supplement Plans?
Before discussing Medicare supplement plans, it’s essential to know who is eligible to buy Medigap policies. Below you’ll find the criteria one needs to satisfy to be able to purchase the insurance:
- You must have Medicare Parts A and B.
- You don’t have Medicare Advantage.
- You fit your state’s criteria for Medicare supplement coverage.
Also be aware that even if you’re eligible to purchase the policy, it’s best to know first if the plan fits your medical needs. Avail of them if you match the below factors:
- You require assistance paying out-of-pocket expenses.
- You already have insurance covering hearing, vision, and dental care.
- You want to select the cost of out-of-pocket fees you’re availing.
On the other hand, a Medicare supplement plan isn’t for you if you fall under the following categories:
- You’re looking for hospice or long-term care.
- You don’t require many healthcare services.
- You don’t satisfy your annual deductible.
- You own a Medicare Advantage Plan (note that it’s unlawful for insurance carriers to provide Medigap to applicants with Medicare Advantage).
Once you pass the criteria, the next step you want to research is cost. So, how do insurance carriers determine insurance prices? Some of the components that can impact the value of Medicare supplement plans include the following:
- Age: Applying for the policy when you’re older means you need to pay more.
- Discounts: Those who are female, non-smoker, and pay electronically can avail of discounts.
- Selected plan
- Medical underwriting
- The area where you reside
- Deductible: Plans with a steep deductible cost lower.
- Time of Purchase: Older policies may be more affordable as regulations change.
Keep in mind every insurance policy differs in cost based on your credentials and the kind of coverage you prefer. Moreover, with Medigap policies, the more excellent coverage you require, the higher the price.
If you want to see the various supplement plans, you can browse insurance carriers such as United World Life Insurance Company.
Why Compare Medicare Supplement Plans?
Now that you understand Medigap eligibility requirements and prices, why is it essential to compare Medicare supplement plans before buying any policies? The reason is that when you compare plans, you’ll be able to recognize which insurance suits your medical requirements.
When researching Medigap policies, keep in mind to examine similar types of policies, and weigh in the costing used. For instance, assess a Plan G policy offered by two varying insurance companies.
Besides the above comparison, you can likewise evaluate Medigap plans side by side. For example, when comparing Plans G and F, you’ll quickly observe one gap, which is the Part B deductible. If paying Plan G premiums will allow you to save cash than paying the Part B deductible, then opting for Plan G makes more sense.
Keep in mind that Plan G is now more prominent compared to Plan F because the latter is currently unavailable for new Medicare applicants. Many enrollees likewise favor Plan N, which features lower premiums. However, you’ll have to shoulder a little cost-sharing.
In a way, aside from learning which plan fits you, you’ll discover that comparing Medigap policies allows you to save money.
It’s understandable when people get flustered comparing Medicare supplement plans or Medigap. Some get confused with policy names; however, remember that these are all standard plans except for those residing in Minnesota, Wisconsin, and Massachusetts, which have their individual policies.
Premium fees may vary per insurance company, but then again, plan benefits are identical wherever you buy. And because of this policy nature, people can quickly compare and shop for the suitable Medicare supplement plan for them.
If you need more information regarding Medigap policies, consult your insurance provider or your State Insurance Department.