A Medicare Supplementary Plan or Medigap is a private health insurance purchased by Medicare beneficiaries to pay for additional costs that are not covered by normal Medicare. There are currently ten plans ranging from emergency travel needs to hospice care. From January 2020, however, this will be reduced to eight plans. Your choices will change, but not one thing: the importance of choosing the plan that best suits your financial and health needs. Although you can opt for a change after you sign up for the first time, companies may refuse to issue health-related policies or simply increase their rates. So choose wisely and seek advice from an insurance broker or agent.
How to choose the right supplementary plan for Medicare?
How do you choose the best plan to supplement Medicare? You can ask yourself some important questions first:
- How much can I afford?
- Which plan works best for me?
- Which insurance company do I choose?
The first question that comes to your mind is probably the same question that most people who want to take out insurance ask. How much insurance can I afford? To respond to this question, you need to look at your monthly budget and health expenditures. How and when do you spend this money? Calculate how your medical expenses change with a Medigap plan. Depending on your financial and health situation, you can choose the most appropriate Medigap plan.
Since the plans all have similar benefits and are standardized by law, consider a comparison chart or tool like the one from Medicare.gov. You can compare plans with this type of table side by side. Review all plans carefully and check the deductibles, co payments, and co insurance amounts. Once you have made the comparison and know what you need, return to your budget and consider it. Once you have decided on a plan that works best for you, you should choose a transport company.
There are three ways that companies can set their premiums: Issue Age (rates increase with age), attained age (rates do not increase with age), and the Community-Rated Method (where rates are the same for all members a community).
Find out what kind of pricing the companies you are looking at offer. Of course, as with other insurance products, price increases due to inflation cannot be avoided. So you might want to go for what gives you the best price at the time of sign up.
When seeking for a 2019 Medicare Supplementary Plan, bear in mind that companies cannot refuse to accept you because of a pre-existing condition if you enroll in a Medigap Plan at the age of 65 during Medicare’s open enrollment. And it is correct that you can enroll outside of the open enrollment period or change Medigap plans whenever you want, insurers can review your existing terms and decide not to cover you.
What will change in 2020?
Congress voted to abolish supplementary plans that cover the deductible for Medicare Part B to cut federal spending. The law also provides physicians with a more efficient way to receive compensation for the provision of services to Medicare patients.