Medicare is an important part of many Americans’ healthcare plans in retirement. What many people do not know is that Medicare coverage does not include everything. You may still be responsible for copayments, coinsurance, and deductibles – and those costs can add up quickly.
That is where Medigap plans come in. At FFJ Insurance Group, we help seniors understand how Medigap plans work so they can protect their health and finances with peace of mind.
What Is Medigap Insurance?
Medigap (Medicare Supplement Insurance) is a private insurance policy that works alongside your Original Medicare (Part A and Part B) coverage and provides coverage for the “gaps” that Medicare does not pay for, including:
● Coinsurance and additional hospital costs for Part A.
● Coinsurance or copayments for Part B.
● The first three pints of blood for a medical procedure.
● Coinsurance or copayments for hospice care.
Medigap may also cover, depending on the plan, coinsurance for the skilled nursing facility, emergency coverage for foreign travel, and certain out-of-pocket costs that Medicare does not pay.
How Medigap Works
If you have Original Medicare with a Medigap plan, Medicare pays its share of the covered healthcare costs first and your Medigap plan pays its share second which will reduce or eliminate your out-of-pocket costs.
This is valuable for unanticipated health events or long hospital stays where expenses can be staggering.
The Different Medigap Plans
Medigap policies are standardized in most states, and you’ll see them identified by letters, e.g., Plan A, Plan G, or Plan N. Each lettered plan has the same coverage regardless of which insurance company sells it, but because premiums are set by the insurer, they can differ.
Some of the most common options are:
● Plan G – Offers complete coverage, paying all remaining costs under Medicare, except for the Part B deductible.
● Plan N – Covers most gaps under Medicare and has small copays for selected services.
● Plan A – Provides basic benefits, covering the basic Medicare gaps but offers limited additional benefits.
Choosing the plan that is best for you will depend on your budget, health needs, and out-of-pocket risk tolerance.
What Medigap Doesn’t Cover
It’s essential to realize that the Medigap plans will not cover everything. They do not cover:
● Prescription drugs (those are covered with Part D).
● Dental, vision, or hearing care.
● Long-term care or private-duty nursing.
If you want prescription drug coverage, you will have to buy a separate Medicare Part D plan to go with your Medigap policy.
When to Enrol in Medigap
Your Medigap Open Enrollment Period, which begins the month you turn 65 and are enrolled in Part B, is the ideal time to enroll. Regardless of your medical history, you are guaranteed the right to purchase any Medigap plan that is offered in your state during this six-month period.
You might be subject to medical underwriting after this time, which could result in your coverage being denied or your premiums going up depending on your health.
Why Choose FFJ Insurance Group for Your Medigap Plan
With so many options and different premiums, selecting a Medigap plan can be difficult. In order to compare plans and identify the one that best suits your budget and medical requirements, FFJ Insurance Group, an independent agency, collaborates with a number of highly regarded insurance providers.
We’ll explain your possible out-of-pocket expenses, go over the benefits, and help you steer clear of expensive blunders like missing your enrollment window or overpaying for unnecessary coverage.
Take Control of Your Healthcare Costs
One of the most significant financial obstacles in retirement may be healthcare costs. A carefully considered Medigap policy can shield you from unforeseen medical expenses, providing you with comfort and allowing you to concentrate on living life to the fullest.
To arrange a consultation and find the Medigap plan that best fits your Medicare coverage, get in touch with FFJ Insurance Group right now.
