Medigap or Medicare Supplement Insurance policy is basically a private health insurance policy that covers the expenses which are not or are partly covered by Original Medicare. Through this service, one can meet the health care expenses which do not come under the purview of the Original Medicare like deductibles, copayments, and coinsurance. Hence it is termed as Medigap. If an individual has a Medigap policy and Original Medicare, then the Medicare will give its share of Medicare-sanctioned sum of money for the covered health care costs and then the Medigap policy will share out its part.
Features of a Medigap Policy
A Medigap policy is not like the other Medicare Advantage Plan such as PPO or HMO. These plans are related to getting Medicare benefits. However Medigap policy solely works as a supplement for the Original Medicare benefits of an individual. Each of the Medigap policies has to abide by the federal and state laws. In majority of the states, a standardized Medigap policy can be sold by the various Medigap providers. These are identified as alphabets A through N. It is a norm that every standardized Medigap policy sold by the various insurance companies has to provide the same basic offerings. The only thing which may be different is the cost. To know more about Medigap providers services, one can visit www.medigapproviders.com.
The benefits and premiums of each of the supplement plan are different. Some of the supplement plans involve a high degree of monthly premium payment and a modest out-of-pocket expenditure for an individual. While others might involve a cheaper monthly premium payment but the sum of money to be paid out-of-pocket is quite pricey. It is the individual and his/her health condition that determines the fact as to which plan will be suitable. The most basic plan is Plan A. Every additional insurance plan has some additional coverage options. So an individual has the liberty to choose a plan that suits his pocket and situation.
Plans E,H,I and J does not exist anymore after June 1st, 2010. M and N are two new plans which have been introduced along with some modifications in benefits for plans A to G. The benefits that are covered by all the insurance plans are as follows:
• Medicare Part A Coinsurance compensating hospital expenses for up to 365 days over benefits of Medicare.
• Medicare Part B Coinsurance or Copayment excepting preventative services
• Medicare Coinsurance for Part B preventative services
There are variations in some of the insurance plans however, mainly from K to N. Other offerings which are covered by some of the insurance plans are:
• Part A hospice care coverage coinsurance or copayment
• Insurance coverage for first 3 pints of blood
• Deductible for Medicare Part A and B
Presently, plan F and G are the only insurance plans that take care of excess charges, a charge which a medical care provider makes over Medicare covers. The Medigap Plan F covers coinsurance payments that comes under Medicare Part A and also pays Medicare Part B coinsurance together with outpatient hospital services. Plan G is similar to Plan F with the only difference being an individual has to bear the Medicare Part B deductible.