Most people who take Original Medicare also buy Medigap policy with that. These are supplemental policies which are used with Medicare Part A and Part B. Medigap policies cover the out-of-pocket expenses like deductibles, coinsurance and co-payments that are associated with Original Medicare benefits. They also offer some benefits which are not a part of Medicare Part A and Part B.
Buying a Medigap plan is not as simple as enrolling into Original Medicare. This is so because, there are ten types of Medigap plans sold by many private insurance companies. Each plan offers some specific benefits apart from the usual basic coverage.Since you have to pick one plan it becomes important to choose wisely – a plan that is best suited for you.
Every insurance company can offer a maximum of ten Medigap plans but usually they don’t offer all the plans in every area. The plans are designated by letters of the alphabet – Plan A, B, C, D, F, G, K, L, M and N. Another plan is available as high-deductible version of Plan F. Plan A is the most basic plan and these benefits are included in all the other plans. The best thing about Medigap plans is that, these plans have standardized benefits, which means, a particular plan will offer the exact same benefits whichever company you buy it from. The rates will be different.
Hence the first thing you have to do while shopping for Medigap plans is to decide which plan to buy. Once you decide the most suitable plan for yourself, you can go ahead and compare the rates from different companies and choose the insurance company accordingly. You need to go through the benefits of all the plans and decide which benefits you need and which ones you don’t. The range of the benefits determine the premiums of a particular plan, so you should not take a plan with unnecessary benefits and avoid paying extra.
Some Factors to Help You Choose a Medigap Plan
The deciding factor while choosing a Medigap plan is the most important coverage you want from your supplemental insurance policy.
- If you want just the basic benefits at the lowest cost, it would be Plan A.
- If you want coverage of your Part B deductible and Part B excess charges, you should pick Plan F. Plan C covers only the Part B deductible while all plans cover Part B coinsurance and co-payments.
- If you want coverage for foreign travel emergency, you can choose any of the plans which offer this benefit, like, Plan C, D,F,G, M and N.
- If you want a plan with a fixed out-of-pocket limit, then you have to choose either Plan K or Plan L.
- If you want a plan with the most comprehensive coverage, then Plan F is the one for you.
- If you want a plan with reasonable premiums and good coverage, you can consider Plan G. Except the coverage for Part B deductible, this plan covers everything else.
Apart from the main coverage that you want, also see the other benefits while comparing. The best plan choice will be different for everyone depending on your individual requirements.