What is Medigap Insurance?
Medicare is a US federal government health insurance program that covers senior citizens above the age of 65. However, while Medicare provides a whole lot of coverage, it can’t cover all healthcare necessities. Hence a separate policy has to be bought to cover thee uncovered areas. This is known as Medigap insurance that has to be bought from a private insurance company.
What are the Medigap Insurance plan benefits?
All the policies provide basic coverage that comprises the Part A co-insurance for hospitalization, costs towards 365 days of inpatient hospital care. Part B is also co-insurance that includes doctor’s visits and treatment at a skilled nursing facility. At-home recovery, emergency medical foreign travel and preventive care also included in Part B. Many plan components are added and deleted via amendments.
The cost towards a Medigap policy is set by the insurance company that provides the coverage. The coverage is standardized i.e. all policies of all companies in the state would offer identical facilities. They carry a monthly premium and most of them have no additional costs attached. While some policies cost the same for all types of customers, notwithstanding the age, some are based on the age of purchase. Buying a policy at an older age attracts a bigger premium while buying it at a younger age attracts a lesser premium.
If you don’t purchase a Medigap health insurance policy during the open-enrollment period, the company would take into account your present health condition. If there are any ailments, the premium would be higher.
If you have opted for Medicare Advantage plan i.e. Medicare Part C, any Medigap policy won’t serve the purpose. If you decide to upgrade to a Medicare Advantage plan and you have the Medigap policy already, you have to drop the latter.