Does A Medicare Supplemental Plan Replace Original Medicare?
How Medicare Works
The medicare plan has four specific parts. These parts are medicare A, B, C and D. Under medicare A, most hospital costs are covered, including critical care needs. Medicare B helps cover doctor visits and outpatient care. With medicare C, the insurance is provided by private insurance companies and the plan falls under the name of medicare advantage plan. Private insurance also takes care of medicare D which provides prescription drugs.
Medicare Supplemental Plan, i.e., Medigap
The medicare plan as it now stands is not sufficient in providing the kind of care that is needed. The cost of doctor and hospital provider care, along with the increased number of patients seeking care, has skyrocketed. Health insurance plans sold by private insurance companies for the purpose of filling the gap in medicare coverage are called medigap policies. Also known as medicare supplemental plans, medigap helps pay for the medical costs that medicare doesn't cover. Together, both plans cover the health care costs being charged to the patient.
Is Medicare Replaced?
If you take out a medicare supplemental plan, you will pay a premium for the insurance coverage. In addition, you must have both medicare part A and part B, before you can enroll in a medigap policy. Therefore, medicare supplemental plans do not replace medicare. Medicare supplemental plans cover the costs that medicare part A and B do not cover.
The amount of supplemental insurance you actually need should be considered, before enrolling. It is good to know that the U.S. government has passed health care reform. By 2014, medical insurance should be more available and more affordable to all Americans.