Medigap plans – what are they? If you have been already enrolled in the traditional Medicare plan which includes Part A and Part B then you can choose to enroll yourself in the Medigap plan. This plan offers coverage that the traditional Medicare plan does not offer. Medigap pays for the Part A deductible and some or all of the Part B copayments or the coinsurance and other expenses too. The Medicare supplement plans are beneficial if you wish to minimize the amount of the out of pocket expense that you would have to bear towards healthcare.
The Disadvantages of the Medicare Supplement Plans
However, there are some disadvantages of buying the Medigap plan that you should be aware of.
- These Medicare supplement plans are more expensive than the traditional Medicare plan. The premium towards the Medigap that you pay is over and above what you pay for the Part B and Part D plan. This could be a monetary pressure on many who live on a fixed income.
- The premium of the Medigap insurance plan also varies from one company to another so you need to do thorough research before choosing one.
- The premium amount increases by a few points each year and thus as you grow older you will be paying more amount for the same coverage.
- You will have to qualify to buy the Medigap policy if you are 6 months past your 65th birthday and do not have any coverage currently. If you are older and do not enjoy medical coverage from your employer then you will have to answer some questions related to your medical history to qualify.
- The Medigap plan does not offer prescription drug coverage. The coverage for drugs is eliminated from the Medigap plan and this means that the policyholder will have to pay additional premium for prescription drugs under Part D.
- Acceptance is not guaranteed. During the initial period that you become eligible for Medicare you get accepted in to the Medigap policy and that is guaranteed. This does not depend on any health condition that is preexisting. If you however decide to change the Medicare plan after that period then the acceptance is dependent on your heath situation and you could be denied.
The truth is that when you go to choose the best health insurance plan there is no one plan that will fit all. So take time and look at the options available and then decide on a Medicare plan based on what you think suits your requirements.