The Medicare Supplement Insurance, also known as Medigap helps individuals in paying out-of-the-pocket costs. These are the health care costs that the Original Medicare Part A and Part B do not cover. The Medigap plans are offered via private insurance companies, and it depends on the individual if they wish to purchase it or not.
There are 10 to 12 Medicare supplement insurance plans, depending on the State as some offers only 10 plans. These plans range from Plan A to Plan N. These are not the Medicare Part A, Part B, Part C, or Part D. As they are plans, and help in covering the blanks left behind by the Original Medicare Parts.
What Does It Cover?
The Medicare Supplement Insurance plan is designed to help minimize out-of-pocket costs, that are not covered in Medicare Part A, and Part B. These include deductibles, coinsurance, and copays. Each Medigap plan is different and helps cover a different out-of-the-pocket cost. However, according to law each plan with the same letter has to offer the same basic benefits, no matter which insurance company you use. For instance, if the Plan F covers a certain basic benefits, then every insurance company has to offer the same benefits.
What do the Medigap Insurance Plans Help Cover?
● You will get help with Part A and B deductibles.
● Excess charges and Coinsurance.
● After Part A benefits are used, it will help cover additional hospital days.
● A number of preventive care benefits,
● And 3 pints of blood transfusion.
These benefits will vary according to plan.
How Does Medigap Insurance Work?
As we have mentioned before, that each Medigap insurance plan covers various out-of-pocket costs, which means the services you use will determine your out-of-pocket-cost. For instance, suppose you are covered under the Original Medicare Part A and Part B, and take on the services mentioned below:
● 15 days in the hospital.
● 22 days of skilled nursing.
● 2 visits to any doctor that is not covered under Medicare.
Here is a table to help you understand your costs:
Part A: Deductibles charged during the benefit period
Part A: Coinsurance to cover the skilled nurse for more than 20 days
Part B: coinsurance covered for the doctor visits
Part B: excess charges for the doctor visits
This will help you get an idea of how much it will cost you without proper Medigap coverage, and how much you can save with a Medigap coverage plan.