Medigap plans are plans that are sold by private insurance companies and are designed to fill in the “gaps” in Medicare’s Parts A & B. Although these plans are certainly optional – not everyone has one or needs one – they can be a great option to put in place to avoid the potentially high out of pocket costs associated with only Medicare coverage.
Below, we’ve listed a few of the primary advantages to the long-term financial security afforded by Medicare Supplement, or Medigap, plans:
- Medigap plans “cap”, or in some cases (i.e. Plan F) eliminate the out of pocket costs associated with Medicare. Nearly all of the standardized Medigap plans fill in the 20% gap in Medicare Parts A & B. Also, many of the plans also pay the Medicare A & B deductibles that are a part of Medicare. With these top level plans, such as Plan F, your out of pocket exposure for medical costs is non-existent.
- Medigap plans allow for predictable expenses. While there is certainly a premium associated with having a Medigap plan, with most of the plans, there are not additional out of pocket costs. Because of that, you can be certain as to what your annual out of pocket expenditures are by simply multiplying the premium by 12. This is especially useful for people on fixed incomes, which encompasses many of the people who are Medicare age.
- Medical expenses are generally the highest as you age. This is a pretty straight-forward fact. Over time, decreases in your health and increases in the cost of medical care will lead to the costs of medical expenses increasing as you get older. Medigap plans provide some long-term security by eliminating the concern over those escalating costs.
- Lastly, Medigap plans give you the security of knowing that you are covered during a time when it can be difficult to obtain coverage. After you pass your initial open enrollment period of Medigap plans (the first 6 months that you go on Medicare or after you turn 65), it can be difficult to get a plan. You have to be approved for coverage, which can be difficult if you have pre-existing conditions. Getting a Medigap plan when you are first eligible is the surest way to avoid this future uncertainty.
If you have other questions about the advantages of Medigap plans or how they work, please contact us at http://medicare-supplement.us or call us at 877.506.3378.