It is very confusing trying to understand all the Medicare plans available. Just about the time you understand Medicare Plans: Part A, Part B, and Part D along comes Medigap or Medicare Supplement Plans. Let’s take a look for just a minute and break this down one piece at a time. By the end of this you’ll be able to have a firm understanding of Medigap or Medicare Supplement Plans
First of all, there is no difference. Medicare pays a portion of the medical bills. The portion or gap Medicare leaves behind is to be paid by the patient in the form of deductibles, coinsurance and copays. Medicare Supplement Plans fill the gap that Medicare leaves the patient. This is why Medicare Supplement Plans are sometimes referred to as “Medigap”.
These types of plans follow Medicare guidelines. Some plans pay more than others, depending on the type of plan you choose based on your needs and budget. For example’s sake, let’s say you have the all inclusive plan. This plan will pay 100% of what Medicare allows and leaves behind. What does that mean, you ask? It means if Medicare leaves a deductible, coinsurance or copay, your supplement plan will cover it.
If Medicare denies an item, the supplement plan has the right to deny that same item. Remember, your supplement plan is paying based on what Medicare allowed but didn’t pay. If you have a lab or procedure that Medicare denies and you have signed an Advanced Beneficiary Notice (ABN), then chance are very high that you will be responsible for the charge.
Medicare Supplement Plans, or “Medigap”, is an excellent insurance to purchase. The coverage leaves virtually nothing, depending on your plan of course, left for you to pay of allowed charges. Check around with providers to find the right supplement plan for you and your budget.