Original Medicare covers hospital and doctor services. It is a program run by CMS “The Center for Medicaid and Medicare Services,” (i.e. the Federal Government) and is available to those over 65 or with certain disabilities. While Medicare is a tremendous healthcare program, it does have “gaps” in coverage. These gaps are in the form of additional fees for deductibles, coinsurance, uncovered days, and the 20% patient responsibility.
How to Seal the Medicare Gap
As there is no ceiling or maximum for this patient liability, these fees can lead to medical bankruptcy in the event of a catastrophic illness or injury. This lack of a safety net is where Medicare Supplement or “Medigap” plans fit in. Medigap or Medicare Supplement Plans are sold by private insurance companies. A Medigap plan reduces the exposure to limitless fees. It is best seen as a way to manage expected and unexpected costs of healthcare. That previous lack of a cost ceiling now has a definition. The definition is the price of the premium for the policy.
Types of Medigap Plans
The scope of safety provided by a Medigap plan depends on the type of plan selected. There are a range of plans designated by letters, with some of the more popular plans being A, F, G, N and F High Deductible. These plan types are all different but each type is equal. As in all F plans are the same. Medigap policies are acquired through independent insurance companies. Each company sets the price at which the plan is being sold, and this can differ within the same letter plan. Though the price can vary, the coverage for each letter plan remains the same. Our brokers have access to insurance provided by a variety of these independent companies, allowing us to use the lowest-cost policy.
Selecting the Right Medigap Letter Plan for You
As stated earlier, these plans are named by letters. And as an example Medigap Plan F covers all costs not covered by Part A and Part B 100%, including the deductibles, there are no additional out of pocket expenses for the insured. With Plan F, the subscriber knows the premium is the maximum limit of expenses in a year. Other letter-named plans cover differing percentages of additional costs, so there is some variability in annual costs, but still the safety net is there. Our brokers match the letter plan with your needs to find the best protection for you against planned and unplanned health care costs.
There are portions of healthcare that Medigap plans do not provide coverage for. These generally include long-term care, as in a nursing home, vision, dental care, hearing aids, eyeglasses, or private duty nursing. Medigap runs alongside medicare Part A (hospital services) and Part B (general physician services) to pay out where they fall short. Medigap also does not cover prescription drugs. A separate Part D Prescription Drug Plan (PDP) is needed if the insured wants assistance, or safety net for drug costs.