It is important to have medical coverage to take care of your hospital expenses and medications as you age. Medigap plans for 2014 will not change from the previous years. But you should be aware of your options and may want to consider changing plans to fit your health needs and your budget.
Why You Need Medigap Insurance
Medigap essentially fills in the gaps left by Medicare, paying what it will not cover. This could include extended hospital stays, blood supplies, deductibles, travelling expenses for medical assistance and more.
The unexpected can always happen when it comes to medical emergencies. You want to be able to afford to keep living after a major surgery or an extended hospital stay. That’s why medical insurance is so vital, especially for the elderly and those who suffer from extensive health problems.
Instead of stressing about how you can pay your medical bills, you should be able to be at peace with your financial situation. You want an insurance plan that covers all the necessary bases but doesn’t sap too much of your budget.
Finding the Right Plan
So how do you determine which plan is right for you and whether or not you are on the right plan? You simply need to examine the choices that are available to you. Plan F is one of the most popular plans because it covers absolutely everything you could need medical insurance for.
And while that may give you some peace of mind when it comes to unexpected health issues, it may be draining your budget. Plan F comes with the highest premium of all the plans of supplemental insurance. That is why so many people are advised to switch to a cheaper plan like Plan G.
Consider Plan G to Save Money in 2014
Many people when they first entered Medicare simply signed up for Medigap Plan F. After all who doesn’t want 100 percent coverage right? Well, you’re paying a premium for that coverage, in fact you’re paying more for only one extra benefit, and it’s likely costing you money. The only difference between Plan F and G is who pays the annual Part B deductible. With Plan F the plan pays it for you. Or better stated, you are paying a higher premium for the plan to write a check with your money.
On Plan G, you must pay this deductible out-of-pocket yourself. After this is paid by you, the plan pays 100 percent of the gaps in Medicare. In 2013 this deductible is $147. Therefore if the premiums for Plan F are higher than $147 for the year you would actually be losing money on Plan F. Of course some people just never want to have to pay a deductible. In this case the extra money might not be of concern. However, if they difference is in the hundreds of dollars worth of savings by simply writing a check yourself, is it really worth it? If you are in relatively good health and only have occasional visits and some basic medications to pay for, a plan with a cheaper premium may be a real money-saver.
Plan F is really for people with serious medical conditions that require constant and expensive medical treatment. You don’t always have to pay a lot to get great insurance coverage. So when you are considering Medigap plans for 2014, think about what you really need and what you can afford.