If you’re approaching retirement age, you probably want to learn as much as possible about Medicare and how it can help you with your health care costs once you reach 65. Health insurance is one of the aspects that will influence the quality of your life after retirement the most, so it makes sense to get educated in this regard.
It’s also true that health insurance in general and Medicare in particular can be pretty hard to decipher for those who are not familiar with insurance products and the way that the insurance system works. In your efforts to shed some light on these matters you might have come across a thing called Medigap, which is a type of insurance that goes hand in hand with your Medicare plan.
So, if you have a pretty good understanding of Medicare, but you still have tons of questions about Medigap, it’s time to figure out what it is and if it might be a good choice for you. Here’s what you should know.
What is Medigap?
First thing first, let’s find out what Medigap is all about. Once you start learning about Medicare and the plans it provides, you’ll soon realize that this health insurance program won’t be able to cover all your health care needs. No matter what type of coverage you choose, there will be some health care areas that will be only partially covered or not covered at all – meaning you’ll have some gaps in your health insurance.
That’s where Medigap comes into play, to fill in these gaps, just as the name implies, and ensure that all your health care needs will be properly addressed. So, in simple terms, Medigap is a specific type of health insurance policy designed to cover the gaps left by Medicare.
Medigap policies are also called Medicare Supplement Insurance, so if you come across this name you should know they are one and the same thing. There are different Medigap policies available, identified by letters A through N. The most popular ones are Plans F, G, and N.
It’s also important to note that Medigap Plans C and F are no longer available to people who became eligible for Medicare after January 1, 2020. If you were eligible before that date, but not yet enrolled, you may still purchase one of these plans.
Speaking of purchasing, you can buy a Medigap policy from private insurance companies, and they can only be purchased individually. Since each plan provides different levels of coverage, it’s important to compare Medigap policies before you decide which one works best for you.
What are the benefits of buying a Medigap policy?
If you were to analyze a hospital bill in detail, you’ll immediately notice there are many services that a basic health insurance policy doesn’t cover. Apart from that, if you suffer a surgical intervention, chances are you’ll receive some additional bills, listing procedures that were not included in your insurance plan.
That’s why so many people turn to Medigap – to make sure they don’t experience unpleasant surprises and deal with astronomical hospital bills if they require medical care. So, if you’re wondering how Medigap can help exactly, here are some of the benefits it provides.
It covers out-of-pocket costs
Because Original Medicare (Part A and Part B) has no limits when it comes to out-of-pocket costs, this might translate into a big financial burden for you if you don’t have a healthy budget. Luckily, Medigap can help in this respect since its purpose is to pay some or all the out-of-pocket expenses that are not covered by traditional Medicare.
Helps with expensive treatments or frequent hospital stays
For those people who require expensive treatments regularly or frequent hospital stays, Medigap can be a better choice than Medicare Advantage, as it can help cut down on healthcare expenses. If you do the math, it can be a lot cheaper to pay monthly premiums for a Medigap plan, than pay for copays, deductibles, and coinsurance with a Medicare Advantage plan.
No need for referrals
Another great thing about Medigap is the fact that it doesn’t require referrals. Medicare Advantage plan requires you to get a referral before you go see a specialist, but if you choose Medigap, you can skip this part, so you can go directly to the specialist. With one less step in your health care journey, you can enjoy greater convenience.
Better choice of health care providers
Medicare Advantage plans limit you quite a lot in terms of doctor choice. That means you won’t be able to see any health care provider you want as you’ll have to stick to a specific network of providers. On the other hand, if you choose a Medigap plan, you can visit any doctor, hospital, or medical provider who accepts Medicare. This ensures a lot more freedom in terms of health care options, which is something a lot of people appreciate.
Ease of use
If you have a Medigap plan, there’s not much you have to do to enjoy the benefits it provides. You don’t have to make phone calls, submit any forms, or do any kind of effort to get your Medigap plan to kick in. The gaps left by your Medicare plan will be filled in by Medigap automatically, relieving you from one extra burden.
Separate drug coverage
Prescriptions are a vital component of healthcare, ensuring access to the medicine you require. It’s therefore extremely important to understand how different insurance plans can help with your prescriptions. When it comes to Medigap, things are very simple: this plan allows you to have a separate policy for your prescriptions. You can change the drug coverage every year, without affecting other parts of your health insurance.
Purchasing the proper health insurance policy can help you live a comfortable and worry-free life after you retire. That’s why it’s important to learn about Medicare, Medigap, and all the ins and outs of the health insurance system before you reach retirement age. Medigap plans can help a lot, but it’s up to you to decide if they’re suitable for you or not.
