Monday, September 17, 2012
A Look Into Medigap Supplemental Plans
Supplemental Medicare Insurance plans are available for seniors to purchase when they are eligible for Medicare. Everyone knows insurance is needed on top of Medicare to ensure that you’re covered beyond the basics. The incidentals that are not covered by Medicare Plan A or Plan B are the items that can end up wreaking havoc on a senior’s limited budget. It is important to understand what options are available and what plans are best set up to meet your exact need.
Let’s begin our research by exploring Plan F Supplemental Medicare Insurance. Plan F is the most widely purchased supplemental plan by far. This plan pays expenses occurring with Medicare Part A and Part B such as deductibles, the twenty percent co-insurance cost associated with Medicare Part B and covers excess charges occurred when using a non-participating doctor. The nice part about Plan F is you basically pay the premium and never see another bill. Sounds like a good plan right?
Medicare Supplement Insurance Plan F offers a few drawbacks as well. It comes down to math and the cost of insurance verse the costs that arise with plan increases and actual deductible paid. Other plans cost much less when paying the monthly premium. Consider if you are paying $45 more a month for Plan F than another supplemental plan that does not cover the deductible of Plan B which is about $170 bucks. You are paying upwards of $500 so that you don’t have bills coming in for you to pay for the deductible.
Since Plan F is the most widely written plan it also inevitably has the most claims each year. Generally people whom are the sickest choose Plan F for their Medicare coverage. This means that participants of Plan F often are subjected to increase premiums more often that other plans.
Plan G and Plan F within the Medicare Supplemental Plans are virtually alike with the difference being in the premium paid monthly and that Plan G requires participants pay out of pocket for the Plan B deductible. One thing to consider when choosing Plan G over Plan F is that your health might dictate moving between supplemental plans so it might end up that later you are not able to qualify for Plan F so choose wisely when first applying for a Medicare Supplemental plan.
Another option in supplemental insurance that is rather new is Plan N. Plan N is along the same route as many insurance carriers of our modern era which requires office co-payments for each visit to the doctor. You are also required to pay out of pocket for the Medicare Part B annual deductible. The advantage is that the monthly premiums are much less that they are with Medicare Supplemental Plan F.
When choosing a Medicare Supplemental Insurance Plan the best option is to use the numbers to help you figure out the best option for you. Consider how many trips to the doctor you usually take to the doctor time the co-pay for Part B and subtract the difference in monthly premiums and see where you come out on top.