Medigap insurance can be an option for certain retirees who rely on Original Medicare, but are unable to qualify for Medicare Advantage Plans. These supplementary insurance plans can assist you with out-of-pocked medical expenses, which include, but are not limited to, hospitalization and prescription costs. Although they’re intended for the senior independent, Medigap plans can also be beneficial for members of a senior society or nursing home who don’t need regular medical care. Medicare is primarily a Medicare Supplement plan. Therefore, Medicare Part D plans 2022 can also be beneficial to members of the military who need coverage for their own medical treatment, as well as senior citizens who receive Medicare on an inpatient basis and rely on it for ongoing medical treatment.
The majority of Medigap plans pay after the Medicare Part B deductible. Most Medigap policies offer an annual primary care coverage that covers the major out of pocket expenses for medical examinations, laboratory tests, durable medical equipment, and inpatient hospital stays. Some Medigap policies also cover the costs of outpatient surgery. There is usually an additional premium added to cover the cost of extended hospital stay. For this additional coverage, the policyholder must call the 800 number on the Medigap policy or go online to enroll in the plan.
Medicare Advantage Plans are standardized by the Medicare Administration and offered through private insurance companies. They’re usually purchased separately from Medicare Parts A and B and cover some of the same services and benefits as Medicare Parts A and B, plus some of the services and benefits listed under “medigap” plans. Some medicare advantage plans also offer additional benefits like extended prescription coverage for seniors with certain chronic conditions or prior medical problems. For example, many offer additional vision coverage and dental coverage.
Another difference between medicare advantage plans and other plans is that the premiums paid for these types of plans are tax-deductible. Premiums are typically higher for seniors who are not receiving Medicare supplemental coverage. Some plans also have special plans for students. Seniors can choose from a variety of plans including Medigap Select, Medicare Advantage, Medicare Part C and Medicare Advantage Plans.
Medigap policies pay the difference between the Medicare Part A deductible and the Part B deductible. For instance, if a policyholder has a $500 premium for each month, but only pays the Medicare Part A deductible, the policy would pay nothing. This is why it’s important to read the terms and conditions of the policy carefully. If a policyholder does not meet the income guidelines for Medicare, he/she may not be eligible for a medigap plan and will have to pay the Medicare Part B deductible. While there are some exceptions, this means that all Medigap policies offer catastrophic or emergency care at a much higher cost than traditional Medicare.
Most people do not realize that there is a difference in the Medicare Supplement Plans and the Medicare Advantage Plans. They both provide health care benefits similar to Medicare, but the ways in which the policies are administered are drastically different. Both plans cover the same Medicare Part A and Medicare Part B, plus some of the popular benefits. The main difference between the two is the additional benefits that come with the Medicare Supplement Plans, such as vision care, prescription drugs, hearing aids, and preventive care services.