The original Medicare plan, which is now usually referred to in government and insurance literature as Medicare Part A and Part B, provides coverage for many of the most basic medical needs of those aged 65 years and older. Medicare Part D also covers the purchase price of subscription drugs, but only up to a certain point. That's where Medigap insurance comes in. A Medigap plan is a private health insurance policy that you can add to these other Medicare parts; as a result, it is often called a supplemental insurance policy. Read on below to discover a few of the reasons why a Medigap insurance plan could be essential for your medical needs.
Lower Costs
Many people may hesitate to more coverage to the Medicare plans they already possess. The main reason for this initial hesitancy is likely to spring from the monthly costs associated with Medigap insurance, but the reality is that it can end up costing you more over time if you choose to go without a Medigap plan. That's because the costs of long-term care can quickly add up, and many specific costs are not likely to be covered by Medicare. Plus, any expenses related to prescription drugs that exceed the Part D limit will not be covered. Medigap can cover these costs, and therefore reduce overall expenditures each year.
Standardized Plans
Another assumption that many people have about Medigap plans is that, because all Medigap plans are sold by private insurance companies, it may be too confusing to compare plans. Thankfully, the government has standardized Medigap plans and refers to them using simple letter designations: G, K, L, and M are just a few popular ones. This means that all Medigap G plans, for example, are the same no matter which company offers them. All you have to do when comparing plans is look at which one fits your needs best and is the most cost-effective.
Easier Financial Planning
A sudden and unexpected medical bill can wreak havoc on your financial life. Unfortunately, this is more likely if you only have basic Medicare coverage. Medigap insurance plans, on the other hand, can make planning for your future financial goals much easier. Medigap eliminates gaps in coverage so that you don't have to deal with major costs suddenly taking a huge chunk out of your savings.
Speak to an agent to learn more about insurance additions.