Medigap is known as Medicare Supplement plans. Unlike other Medicare plans, Medicare Supplement plans do not cover any health services. Instead, they pay for certain expenses that Medicare Part A and Part B (Original Medicare) don’t cover, such as copayments, deductibles, and coinsurance.
There are ten Medigap plans available in most states and are labeled from Plan A to N. There are specific reasons why enrolling in one of these ten Medigap plans can be a good option. Here are some of those reasons!
Why Medigap May Be A Good Option
While Original Medicare covers services such as preventive screenings, hospice care, durable medical equipment, and other services, it does not cover all your healthcare expenses. Medicare will provide coverage for up to 80% of approved medical costs while you’ll cover the rest. It is also important to note that you will need to cover a certain amount known as the deductible before Medicare pays for approved services.
If you need to visit your primary care provider regularly or you need services frequently, then your out-of-pocket costs can quickly increase. In a case where you are admitted to a hospital for over 60 days, you will pay a certain amount each day as a coinsurance, which can become pretty expensive (up to $778 per day if your stay extends beyond 90 days). Individuals with a low income especially may find it hard to pay their Medicare premiums and other out-of-pocket costs. Medicare Supplement plans, however, help to cover these out-of-pocket costs that Original Medicare does not cover.
First-Dollar Coverage
Original Medicare has deductibles. The deductible refers to the amount in expenses you are to cover before Medicare pays for approved costs. Some Medigap plans provide coverage for the deductibles from Original Medicare. For example, Plans B, C, D, F, G, K, L, M, and N cover Part A’s deductible. However, both Plans C and F provide what is known as first-dollar coverage. This means they cover deductibles for both Part A and Part B. You can enroll in Plan C or Plan F if you were eligible for Medicare before January 1, 2020.
Variation of Coverage
Apart from coverage for deductibles, Medigap plans can also provide great coverage for other out-of-pocket costs. The best part is that each of the ten available plans will provide varying levels of coverage, giving you the option to choose between having basic coverage or comprehensive coverage.
For example, Plan A is the least comprehensive plan available. It only covers:
- Part A coinsurance and hospital costs
- Part B coinsurance or copayment
- First three pints of blood
- Part A hospice care coinsurance or copayment
If you’re looking for more comprehensive coverage, you can opt for Plan F. However, if you’re not eligible for Plan F, the next best option is Plan G which covers everything that Plan F does, except for the Part B deductible:
- Part A coinsurance and hospital costs
- Part B coinsurance or copayment
- First three pints of blood
- Part A hospice care coinsurance or copayment
- Skilled nursing facility coinsurance
- Part A deductible
- Part B excess charges
- Foreign travel emergencies (up to plan limits)
For more information about Medigap coverage, contact us today at 800-805-6834!
