Is There Difference Between Medicare Supplemental & Wrap Around?
Many seniors benefit from reduced healthcare costs through the government provided insurance plan, Medicare. However, Medicare has many gaps, and it does not cover many of the costs that are associated with regular doctor visits, prescriptions, and long hospital stays. For this reason, many senior citizens frequently turn to Medicare supplemental insurance and wrap around policies.
What is Medicare supplemental insurance?
Medicare supplemental insurance is additional coverage that is provided by private insurance companies, and it is sometimes referred to as Medigap coverage. These policies are meant to fill in the coverage gaps that are left behind by Medicare, such as health costs that may be incurred during trips abroad, stays in nursing homes, and the costs of prescriptions.
Most supplemental insurance plans do not cover deductibles or co-insurance fees. This means that these fees must be paid for out-of-pocket, and for any seniors that frequently visit various doctors or hospitals, those costs can add up quite quickly.
What is wrap around?
Wrap around policies can be used to fill in the gaps that are left behind by both Medicare and supplemental insurance policies. This term can be used to describe any type of policy that is used to extend insurance coverage. Two examples of a wrap around policy include Medicare Advantage and Medicare Prescription Drug.
Most people who purchase wrap around policies choose plans that help cover deductibles and co-insurance fees. They also tend to choose plans that provide more in-home care coverage and coverage for fees that exceed the limits provided by their supplemental insurance.
Who needs Medicare supplemental insurance and wrap around?
All seniors should consider purchasing supplemental insurance, and anyone who is in poor health or is on daily medications should also consider purchasing a wrap around policy. Together, there policies can reduce out-of-pocket costs, making healthcare much more affordable.