| The Right Questions To Ask Before Buying A Supplemental Insurance For Medicare Plan |
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| Written by Richard Cantu |
| Thursday, 28 October 2010 22:01 |
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Medicare is a federal program that offers medical and health insurance to citizens age 65 or older. Medicare does not cover all medical and health care related costs. Supplemental Insurance For Medicare, also known as Medigap insurance, can help pay for some of the expenses that Medicare does not cover.
Medicare is a federal program that offers medical and health insurance to citizens age 65 or older. Medicare does not cover all medical and health care related costs. Supplemental Insurance For Medicare, also known as Medigap insurance, can help pay for some of the expenses that Medicare does not cover. Federal law strictly regulates medigap policies. There are standard medigap plans A through L. Plan A has the smallest level of benefits and Plan L has the most comprehensive level of benefits. All medigap policies must conform to one of the standard plans. However, the premiums charged for a standard medigap policy are not set by federal law. The issuing insurance company can set their own premiums for a standard plan. You should purchase a supplemental policy within six months of enrolling in Medicare part B. If you enroll within this time frame the insurance company must accept you even if you have a previously existing medical condition. Sometimes an insurance agent will try to get you to buy a standard supplemental policy by stating that it has a superior benefits schedule. Do not fall for this trick. Federal law requires that the benefits of the standard supplemental plans be identical and consistent with the law. But since premiums can vary, it is worthwhile to do some comparison shopping before deciding on what policy to purchase. It is important to be aware of deductibles, co-pays and co-insurance. A deductible is an amount that you are responsible for paying when you have a medical expense. For example, with a twenty percent deductible and an one hundred dollar medical bill, you will pay twenty dollars and the insurance company will pay eighty dollars. A co-pay is a per treatment fixed charge that you must pay. For example, you may have to pay ten dollars for each doctor visit or five dollars for every prescription. Co-insurance is the same as a co-pay but it is based on a percentage instead of a fixed amount. Deductibles, co-insurance and co-pays further complicate the buying decision. Deductible and co-pays that are beyond your budget renders a medigap policy useless. It is critical to read and completely understand the terms of a policy before you buy it. Do more than simply listen to a sales agent pitch. Make sure you understand what you will have to pay in deductibles and co-pays before you sign on the dotted line. The health care reform legislation that was recently enacted by congress and the Obama administration has modified most of the standard Medigap insurance plans beginning June 1, 2010. It is important to learn about these changes or to meet with a professional Medicare consultant who can help you. The official Medicare web site offers a lot of useful information to educate yourself regarding Medicare and supplemental insurance plans. Supplemental insurance for Medicare is not an easy subject for most people to understand. It is complex. There is confusing legal and insurance technical language that is difficult to comprehend. Some sales agent are less than completely honest in their sales presentation. However, having good health insurance coverage in your later years is very important. Take the time to do your homework, shop for your insurance plans carefully, and understand completely any product that you purchase. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Finding the concept of Supplemental insurance to Medicare difficult to understand ? Get the ultimate inside skinny now in our top Medicare supplemental insurance plans review. |