As you approach retirement age and become eligible for Medicare, you may hear the term “Medigap coverage” being used. Medigap, also known as Medicare Supplement Insurance, is a type of insurance policy that is designed to help cover the gaps in Medicare coverage. In this article, we will discuss what Medigap coverage is, how it works, and why it is important.
As individuals reach the age of 65, they become eligible for Medicare, the Federal health insurance program that provides coverage for hospitalization, medical services, and prescription drugs. However, Medicare coverage is not comprehensive, and individuals may face out-of-pocket expenses such as deductibles, copays, and coinsurance. This is where Medigap (Medicare Supplement plan) comes in as a supplemental insurance plan that helps fill the gaps in Medicare coverage.
Medicare Supplement Insurance, also known as Medigap, is a type of health insurance policy that helps cover the out-of-pocket costs that Medicare doesn’t cover. These policies are sold by private insurance companies and are designed to work alongside Original Medicare to help pay for things like copayments, coinsurance, and deductibles.
Medicare is a Federal health insurance program that was established in 1965 to provide affordable health coverage for Americans who are 65 years of age or older, as well as some younger people with certain disabilities and medical conditions. Medicare is funded through payroll taxes, premiums, and government funding, and it covers a wide range of healthcare services, including hospital care, physician services, prescription drugs, and more.
The biggest complaint about Medicare Advantage plans is their high out-of-pocket costs and restrictions.
Two of the most common questions we get are, “Are Medicare Advantage plans bad?”, and “What are the advantages and disadvantages of Medicare Advantage plans?” If you’re trying to figure out if the private health plan option is right for you, read on.
Medicare Supplement Insurance, sold by private insurance companies, helps pay some of the out-of-pocket healthcare costs that Original Medicare (Parts A & B) don’t pay. The plans, categorized by letters A-N, are standardized meaning they include the same basic benefits regardless of where you buy them.
The Annual Enrollment Period is actually an opportunity – not a burden. This is the only time of year, outside of special exceptions, when you’re permitted to switch your Medicare Advantage or Part D drug plan.
Understanding prescription drug coverage can be one of the most challenging parts of Medicare. Each plan offers different levels of coverage and involves varying deductibles, premiums and copayments. Yet, the basic concept behind all Medicare Part D prescription drug plans is the same.
Most people talk about retirement as a shiny, sunny chapter of your life in which you no longer have to clock into work, answer to a boss, or spend 40 hours a week working for The Man. For many retirees, however, retirement turns out to be less pleasant than they expected.
The Part B monthly premium will be $164.90 next year, a decline of $5.20 or about 3%, according to the Federal Centers for Medicare and Medicaid Services. Medicare Part B covers numerous items, including doctor visits and outpatient services like lab tests and diagnostic screening.
