If you are older than 65 and have Medicare then you may be interested in comparing the differences between Medicare Supplement Plans 2022 and Medigap Insurance Plans. These two kinds of insurance are often confused with each other, but there are significant differences between the two plans. Medigap is actually an extension of Medicare. Both plans provide a variety of benefits to Medicare beneficiaries in different amounts.
Both types of insurance plans cover out-of Pocket costs not covered by original Medicare, including coinsurance, copays, and deductibles. Some plans will also assist with prescription coverage, including emergency health care outside of the United States or the first three months of prescription drugs, coverage for foreign travel, and coverage for extended time period of prescription drugs.
For each month that you maintain the coverage, you will pay a premium which is applied directly to your Medicare benefits. If you choose to stop receiving Medicare benefits, you can pay the remaining balance of your premium to the insurance company and will regain all benefits at the time of renewal.
Medigap Insurance Plans covers out of Pocket expenses not currently covered by Original Medicare. They are usually purchased by people who are 65 and older and are not in need of nursing home care, disability or Medicare Advantage Plans. Many people purchase these supplemental plans to extend their coverage if they are between Medicare eligibility ages but are not yet eligible for Social Security or Medicare. Some of these plans also cover individuals who have been disabled and are not considered a qualified patient for Medicare benefits. The policyholder is responsible for the entire monthly premium.
Senior Citizens and their family members are encouraged to consider these policies if they do not qualify for Medicare. Most senior citizen insurance companies offer these plans along with Medicare. Seniors can find a variety of companies that offer coverage for their specific needs. Choosing a plan can be a little challenging due to the large number of plans available and varying premiums, so it is advised to do your homework and talk with several different agents before making any firm decisions.
Some of the main differences in these plans include the choice of Medigap policy features, premium and deductible amounts, coverage of in home assisted living, non-medical reimbursement of chiropractic office visits, spousal and family medical coverage, and the choice of different policy options including flexible spending accounts, customized pay out options and annual account adjustments.
Senior Citizens can also receive coverage for vision care, specialized durable medical equipment, in home supportive therapies, home health care services and hospice care. These private companies offer policies for just about every type of situation a senior may face.
The main difference between the Medicare and Medigap Insurance Plans is that seniors are not required to pay deductibles, but Medicare does require the individual to pay a monthly premium that is used to pay the cost of hospitalization and related services when Medicare is not paid. The Medicare supplement policy will cover all of the costs of a person’s medical care up to the highest Medicare Parts A and B.
There are several different things that can affect a Medicare beneficiary’s Medicare coverage such as their income, their claim history, their age and type of coverage. The benefits for Medigap policy holders may not be as extensive as those for Medicare. For instance, most Medigap policies do not cover hearing aids, vision care or certain therapeutic devices such as wheelchairs or artificial limbs.