How To Choose Medigap Insurance

People approaching retirement age and many seniors often worry how to pay for health care. This is a necessary step as the key source will often be Medicare. One thing to not about Medicare is it does not cover all costs. There are charges from doctors and hospitals that Medicare does not cover. The people who have traditional Medicare need to pay a 20 percent deductible for the costs of any tests and doctors visits. This is why you should learn how to choose Medigap Insurance properly as you will likely change plans in the future as well.

Out-of-pocket expenses will add up over time. The best way to bridge this gap is to purchase Medicare Supplement Insurance or a Medigap policy. This insurance pays for various health care costs which are not covered by Medicare.

Individuals can choose among 10 different types of Medigap plans available from most health insurance providers. Each Medigap plan has an assigned letter from A to N. Medigap policies are standardized and have basic benefits that are the same. The only difference for each plan is the cost. The benefits for Medigap Insurance will vary based on a specific plan.

Plan A

This plan will pay 100 percent of Medicare Part A Coinsurance and all hospital costs up to 365 days after Medicare benefits are exhausted. Copayments or coinsurance for Medicare Part B are also covered at 100 percent. The first three pints of blood are paid at 100 percent as is the coinsurance or copayment for Part A Hospice Care.

Plan B

This plan includes all of the benefits provided in Plan A. However, Plan B will also pay the deductible for Medicare Part A at 100 percent.

Plan C

This plan is a better value as it includes all the benefits provided in Plan A and Plan B. This plan will also pay the coinsurance for Skilled Nursing Facility Care at 100 percent. The deductible for Medicare Part B is paid at 100 percent and Foreign Travel Emergency is paid at 100 percent up to plan limits.

Plan D

This plan includes all the benefits provided in Plan C minus the Medicare Part D deductible.

Plan F

This is the most popular plan for Medicare eligible individuals. It will include all the benefits in Plan C plus it will pay 100 percent for Medicare Part B Excess Charges.

Plan G

This plan includes all the benefits provided in Plan C minus the Medicare Part B deductible.

Plan K

This plan includes all the benefits provided in Plan B plus Skilled Nursing Care Facility Coinsurance that is covered at 100 percent. However, all the included benefits except Medicare Part A Coinsurance and hospital costs are covered at 50 percent.

Plan L

This plan is the same as Plan K except the benefits are paid at 75 percent.

Plan M

This plan includes all the benefits in Plan L and Plan K. However, the Medicare Part A deductible will be covered at 50 percent.

Plan N

This plan includes the same coverages as Plan C minus the Medicare Part B deductible.

Even though insurance companies must provide the same benefits within a certain plan, there will be a big difference in the premium. Individuals looking for Medigap insurance need to shop around to find a good price. The best place to start is by using our FREE quote engine to get rates from multiple companies. Just enter your zip code below to begin!

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