Should I Have Medicare Private Fee For Service Plan And Medigap?
Medicare operates on a fee for service basis, as do most Medicare supplement Insurance plans. There are private Medicare providers, but almost none of them operate on a fee for service basis. Medicare Advantage Plans usually operate the same way health maintenance organizations, or HMOS, do.
If a person can get a private fee for service Medicare plan, he probably will still need a Medigap plan. Most HMO-run Medicare plans do not require a person to have supplemental insurance as well.
What Is the Difference Between a Fee For Service Plan and an HMO?
Because the standard Medicare policies operate on a fee for service basis, most Medigap plans operate on a fee for service basis as well. Under this business model, if the term can be stretched loosely, Medicare pays for services after the doctor performs them. HMOs offer a list of services approved and try to have doctors get the least expensive service that will cure a patient’s condition.
Private Medicare fee-for-service health insurance plans usually will cover services that the government-sponsored program does not. The additional coverage will replace the need for Medigap policies. Private companies generally do not offer only the coverage that Medicare does.
Can I Have a Private Fee For Service Plan and Medigap?
Assuming a person can find such an odd combination, there is no reason why a person cannot had Medigap with a private fee for service plan. It is simply not necessary in many circumstances. A person cannot have a Medicare Advantage Plan with one of the standardized Medigap plans.
However, there is no advantage to have a private fee for service Medicare plan over having one of the ones issued by the government. A recipient who has either type of plan can benefit from a Medicare supplement plan to provide additional health insurance coverage.