A Medigap Insurance policy is a health insurance policy offered by insurance companies as a way for people to cover services that Medicare does not cover. Even though there is a monthly premium with Medigap, a person can save money over time if they use services that are not covered by Medicare. There is no right or wrong answer about whether or not to purchase the additional coverage, rather it is a decision that is left to each person.
Many Medigap insurance plans help defray costs associated with Medicare co-payments, hospital stays, and other services. Less expensive plans often have less benefits, as well as having higher out of pocket costs. A more expensive plan will cover many more services, including routine checkups, Medicare deductibles, at home recovery, and other services. Again it is important for a person to decide what is important to have covered. Often, if a man or woman stops their Medigap coverage they will not be able to get it back.
Under a Medigap plan, a person must pay a monthly premium to their insurance company, as well as paying their Medicare Part B premium. The cost of a Medigap insurance plan depends largely on the type of plan, age of the person covered, the location that they live, and the insurance company that is providing the coverage. Since many companies make their own rules and set their own prices, it is important to compare different insurance companies to get the best deal.
Only people who have Medicare Part A for their hospital services, and Medicare Part B for their doctor services are eligible to apply. There are 12 plans that are offered, labeled “A” through “L”, with each one offering a different level of coverage. Although the plans are sold by different insurance companies, each plan offered is the same. This means that if you plan on purchasing Medigap Plan E, every insurance company will offer the same coverage.