How Does Medicare Work With Supplemental Insurance?
Medicare supplemental insurance, also known as Medigap, is a system that is closely related to Medicare, but it is not medicare itself. Those who are in one way or another familiar with Medicare realize that it only covers about half of the costs that are associated with health care. The rest of the costs need to be covered by the patient. Supplemental insurance is there to fill in these gaps so that these costs do not need to be covered by the patient.
Is Supplemental Insurance Run by Medicare?
Supplemental insurance is unique in that it consists of a series of plans that are laid down by the government, but the plans themselves are offered by private insurance corporations. There are several different plans available, A through L, but these plans do not vary between the insurance carriers. In other words, the Plan A offered by one company offers the exact same coverage as the Plan A offered by a different company, but a different coverage is offered by Plan B, and so on.
What Does Supplemental Insurance Cost?
The costs of the medigap policies vary depending on the plan that you choose and the carrier that you decide to work with. Remember, the coverage is the same no matter which carrier you go with, so the costs should be your primary concern.
The Three Different Supplemental Insurance Pricing Schemes
Rates vary dramatically between carriers, but the pricing schemes can be divided into three categories. There are those that are priced based on your attained age, meaning that they are low in the beginning and increase and you age. There are those that are priced based on your age when you sign up, meaning that they do not change as you age. They may cost more toward the beginning but less at the end. Finally, there are those priced based on the community. These are not dependent on your age at all.