Having a Medigap plan is a good idea for someone on Medicare Parts A and B. By themselves, Medicare Parts A and B leave several significant gaps in coverage, including relatively large deductibles and an unlimited 20%. If you are faced with a hospital stay or surgical procedure, you can be responsible for that 20%, which is unlimited and can be very large. Some of the many advantages of having a Medigap plan are:
- It puts a “cap” on your out of pocket expenses. If you have only Medicare Parts A and B, you are responsible for an unlimited 20% at the doctor and hospital. Medigap plans “cap” that amount so you are not responsible for the full 20% – in the case of the higher level plans, you can have full coverage of the 20% at the doctor and hospital.
- It gives you a predictable amount of medical expenses for the year. As mentioned above, you can have predictable, known out of pocket expenses with a Medigap plan. In the case of higher-tier plans, such as Plan F and Plan C, you are responsible for the premium and the plan fills in the “gaps” for the year. So you know what your out of pocket costs are for the year without having the variable of your health and unpredictable costs to worry about.
- It is completely portable – can be used anywhere that takes Medicare nationwide. Unlike most other types of plans that have somewhat restrictive networks (i.e. Medicare Advantage), Medigap plans are completely portable. They provide the same coverage regardless of where you are in the U.S., as long as the doctor or hospital takes Medicare. Additionally, if you move, you are not required to change plans – the coverage would be the same.
- It gives you financial stability and security. As mentioned in the advantages above, Medigap plans give you the financial security of known, predictable out of pocket expenses. This prevents the increasingly frequent occurrence of catastrophic medical bills.
- It is guaranteed renewable – it cannot be cancelled unless you do not pay the premium. Medigap plans cannot be cancelled, based on your health or other factors. The only time that a Medigap company can ever “end” your plan is if you do not pay the premium. Otherwise, you get in a plan and are guaranteed that it will carry you through, even if your health changes or becomes poor.
While there are certainly a multitude of options, Medigap plans continue to be the most reliable, long-term stable option among the Medicare insurance options.
If you have questions about this information or want to get quotes for Medigap plans in your area, visit Medicare-Supplement.US or call us at 877.506.3378.