Wealth ... Medicaid / Medicare
Medicare Supplement Insurance, Medigap Insurance
by Puritan Life
Goal: The goal of the article is to educate the audience about the Medigap open enrollment period and why that’s important to them and to establish the importance of having Medigap Insurance.
Medigap Insurance (or Medicare Supplement Insurance) is a private insurance plan that supplements Medicare's benefits. Regulated by state and federal laws, it offers a more complete and comprehensive coverage that allows holders to reduce their out-of-pocket costs, choose their own hospitals, doctors, and health care providers, and cover Medicare's co-payments and deductibles.
It is important to remember that anyone with a Medicare Part B Plan who has reached the age of 65 years (or older) can get a Medigap policy. It cannot be revoked, and it covers only one person for every plan. More importantly, though, these plans have a six-month open enrollment period.
This period begins on the later of your 65th birthday or when you sign up for Medicare Part B and ends six months later. During this six-month period you are guaranteed Medigap coverage at a preset rate without medical screening. However, there are some exceptions to the rule, such as pre-existing conditions that require some people to wait for six months. These pre-existing conditions are, in effect, health problems that require a person to see a doctor within six months before the date the policy goes into effect. You should keep this in mind before purchasing a Medigap Insurance.
How do you know if you are eligible for open enrollment? Simply add six months to the effective date of your Part B coverage. If that date hasn’t already passed (and you’re at least 65 years old), then you’re eligible for a plan. It is highly advisable to purchase a policy during this period, as those who miss it will have to settle for companies who now have the option to refuse coverage or charge higher premiums.
There are twelve standard Medigap policies - A through L, and two new policies - M and N. However, recent changes were made in these plans, and after June 1, 2010, policies E, H, I, and J will not be sold after May 31, 2010. Those who have Plans E, H, and I prior to June 1, 2010 will be able to keep the policy, however.
Hospice benefits are added to all the remaining policies, and some plans are gaining more favorable feedback from the policy holders. One of the most popular right now is Plan N. Not only does it reduce monthly premium costs through cost-sharing (which accounts for its high affordability), it is often recommended as a cost effective alternative to Medicare Advantage Plans due to its lesser network restrictions and smaller liabilities to its holders.
Although Medigap policies are comprehensive, they are not complete. They don't cover dental care, vision care, prescription drugs, eyeglasses, hearing aids, private-duty nursing, and long-term care. More information about the different Medigap policies is available at the Health Insurance Counselling and Advocacy Program, and it is best to learn more about them before making a decision. If you are thinking of buying a plan, you should first think about the benefits you want and what Medigap Insurance Plan meets those needs. You should also consider your future health care needs, in case you decide to switch to another Medigap policy later on.
For more information on Medicare Supplement Insurance, please visit Puritan Life!