Coming to terms with Medicare plan options you may potentially face with healthcare can be confusing at best. Medicare Supplement insurance, also known as Medigap, is an important part of understanding the puzzle for many seniors.
Not to be confused with Medicare Advantage Plans, Medicare Supplement Insurance can be an attractive option for many senior citizens. A Medigap policy is an insurance policy sold by a private company that helps fill in the gaps that original Medicare program do not cover such as co-pays, co-insurance, deductibles, and some other charges.
Generally, Medigap policies are standardized so that plan A through N will offer the same basic benefits no matter which insurance company is selling it. For instance, plan A will always offer the same benefits, though that version is the most basic of all the supplements. Plans B through N will offer increasing levels of coverage to supplement original Medicare. Depending on your medical situation, the most appropriate Medigap supplement plan may be different, presenting the need to weigh differences between each. The main advantage of Medigap is that it stays with you no matter where you live in the U.S. Additionally, the defined premiums are uniform from any company so that you don’t have to pay more for the same coverages provided by the same company.
However, you will need to pay your premiums in addition to the premiums you have to pay for original Medicare, and prices may be very different in order to compare each Medigap policy you're considered. Additionally, Medigap is not designed to cover every health expense possible, so additional out-of-pocket expenses may still be necessary. Medicare Supplements will also not cover non-Medicare approved expenses such as vision, hearing, and dental services not covered under Medicare.
Understanding the differences between Medicare Advantage and Medigap insurance can be challenging but can have huge benefits in the long run. Medical bills can quickly escalate in the event of a health emergency, so understanding your plan(s) beyond the basics is a smart move. It’s also worth stressing that Medigap plans don’t cover expenses for long-term care. Consider researching other long-term care options if you’re worried about long-term care costs.