Medicare supplement plan or insurance fills the small hole that is in original Medicare, and private companies sell it. Original Medicare pays you much but not full cost Medicare Supplement Plans covers the costs like co-payments, coinsurance, deductibles, etc. In a more straightforward word, Original Medicare covers all the long-term expenses but not small expenses; supplement plans can cover those small expenses. These supplement plans are called Medigap as well.
Medigap is very important, and it is not available to the person under the age of 65. These plans are necessary because the small expenses can also be costly, and you do not want any financial tension when you are facing any health crisis. So, it is always advisable that you do have a Medigap policy. Private companies issue these Medigap policies.
Now that we know what a Medigap or Medicare Supplement Plans is let’s discuss thing you should consider while buying any Medigap policy: –
- Costs: – The cost varies in Medicare supplement plans, and there are many types of Medigap policies. So, choose how much you want to spend on the supplement policy. In 2018, Plan g cost 150$. To select a Medicare supplement plan, you should be aware of your needs or any type of out-of-pocket costs that come with the plan. Choose a program that would be comfortable for your pocket. Of course, a higher percentage of will cost you higher money.
- Choose the plan suitable to you: – As we discussed that there are several programs provided to you by the company. One thing you should notice that Medigap policy is standardized; you have many types of Medigap policies, so here are some factors to consider while you are choosing a type of Medigap policy.
- Do you travel a lot: – If you travel a lot, you should get a plan which will help you with travel emergency coverage? Programs like D, G, M, and N pays 80% of qualifying emergency care in foreign countries.
- Do you want help with Part B costs? – Another decision you want to make is if you wish to your excess Part B costs be covered. Plan G will help you pay the excess charge that charges are the payment between Medicare approval amount and the maximum a doctor can charge. Plan K covers 50%, and Plan L covers 75%. So, chose if you want your excess Part B cost to be covered.
- Do you want to the maximum coverage: – You have to decide whether you want a 100% coverage or not, there are plans with different coverage percentages. People with Plan G have maximum coverage, and that is 100% except for the foreign emergency. Plan G covers 80% of foreign emergencies.
- Do you want an out-of-pocket limit: – There are plans with out-of-pocket limits; it means that once you pay a certain amount, they cover you 100%. Plans K or L covers you 100% once you spend $5880 or $2940, respectively.
So now that we know what a Medigap is, in few words, it covers those short costs that your Medicare plan does not cover. It is essential to have Medicare Supplement plans, so follow the suggestions mentioned above and have the most suitable plan for you.