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Medigap Coverage for Medicare Plans
MediGap plans were designed to fill in the gaps of Medicare Part A and Part B. A Medigap policy is offered by a private insurance company, such as, Mutual of Omaha, Humana, HealthNet and many others. The plans are standardized. Thus the coverage is exactly amoung the insurance carriers. You will want to compare the premiums and rating of the company before making a decision. Some insurance companies offer very low rates, but will increase ratesquickly as you age or will drop the plan in the your state if claims become too high. You want to find a financialyl strong company to avoid this mishap and hassle down the road.
There are 12 standardized health plans available. The premium is on top of your Part B premium. Plan F is typically recommended for most people. It will fill in all the gaps of Original Medicare. Therefore, you will not have another medical bill or copay again. Most MediGap plans do not offer prescription (Rx) coverage. You will need to find a Part D plan in addition. There are literally dozens upon dozens of plans available. Plans M and N are effective June 1, 2010. The new Medigap plans are less expensive than Plan F, but do not cover the Original Medicare deductibles and there is a copay for physicians.
What to consider when selecting an Medigap plan
MediGap Pros |
MediGap Cons |
- Covers 100% of medically necessary cost
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- Does not cover some routine or preventative services
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- No network: You may go to any provider that accepts Medicare
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- Premiums vary with gender and health.
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- No referrals required for specialists
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- Premium increase with age
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- All carriers offer standardized benefits, but premiums vary greatly
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- Insurers may deny you based on health if you choose to switch
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- Saves money for people needing high-cost or frequent care
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- You will need to purchase additional Rx coverage
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- Ideal for those that spend time in mulitple locations throughout the year.
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- May be difficult to find providers accepting Original Medicare in some areas
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