The traditional Medicare federal insurance system made available to the elderly and disabled citizens only provides 80% coverage of medical and other expenses. Medigap is the supplement insurance that is purchased from insurance providers to fill the gaps in coverage created.
This is a critical question to ask your Medigap plan provider. You should know what you are expected to pay monthly and exactly how that cost is calculated. This calculation is determined differently by different Medigap providers, and in many cases a provider will take into consideration the marriage status of the applicant, the gender, health, whether the applicant smokes and several other` factors.
Once the enrollment is completed, the plan does not necessarily start immediately. The start of the plan should be determined by asking the plan provider so that you can be certain of all your financial medical responsibilities. Another question may be how long you are locked into the plan.
In most cases, if you are within the period of time that guarantees you the right to purchase Medigap insurance, then Medigap will immediately cover your pre-existing conditions. However, if you purchase Medigap insurance and you are not within this period, pre-existing conditions with your Medigap plan may not be covered for the first six months of the new plan.
The cost changes vary with different providers but the changes are usually based on one of three different calculations. These are issue-age-related, location-related and attained-age-related factors. For issue-age-related cost increases, the changes are made with considerations based on the age of the policy holder. Location-related cost increases are made due to inflation in the location of the policy holder. Attained-age-related cost increases occur as the policy holder ages.
With such an agreement, the Medigap plan will provide payment toward Medicare services that are also covered by the plan. You can ask your Medigap provider to advise you how such a crossover agreement can be included if it is not.