Over 14% of Americans over the age 65 and older have medicare, a government funded health insurance program. As more and more Americans grow older, the percentage can only increase. What do the millions of Americans on medicare do when their medicare benefits do not cover all of their medical expenses? They turn to Medigap.
Medigap insurance policies are supplemental policies from private insurances offered to medicare beneficiaries to cover the gap between what medicare will pay, and the actual cost of treatment. There are ten alphabetically labeled plans that offer varied amounts of health coverage. Medigap insurance cannot, however, be used to cover the cost of prescription drugs.
In order to be eligible for a Medigap plan, users must already be registered in a Medicare part A, or B plan. A person may qualify for guaranteed enrollment in the program if they are over the age of 65. Those without guaranteed enrollment status may be subject to routine medical screenings. Medigap insurance is not intended to be used with any private Medicare plans, like Medicare advantage.
The ten medigap insurance plans as of June 1st, 2010 are: A,B, C,D,F, G,K,L,M, and N. Each plan offers a higher amount of coverage. For example, Medigap plan A covers blood, additional hospital stays, and co-payments, while Medigap plan G covers all of the above, additional deductibles, preventative care and foreign emergency costs. All Medigap insurance plans have specific benefits, regulated by the government, so users can easily choose a plan that fits their budget and health needs.
Medigap insurance plan exist to help prevent people from incurring unnecessary expenses. So, if Medicare benefits do not seem to be enough, invest in a good Medigap plan.