The new option for retirees: Medigap Policies or Medicare Advantage Policies

The new option for retirees: Medigap Policies or Medicare Advantage Policies

On June 1, 2010, Medigap Insurance, also known as Medicare care policies, underwent noticeable changes. Medigap, which offers health insurance coverage for deductibles and co-insurances which Medicare beneficiaries are required to pay for access to health services has just undergone a profound transformation. Several policies have been canceled and new ones added.

Medigap policies E, H, I and J have been eliminated. These have been called “benefits for preventive care” and “benefits for home recovery”. Inclusions are supplements M and N, but it is not sure that all companies are proposing new ones. However, all new Medigap policies have added palliative care.

The new Policy N offers similar benefits to Policy D, with the difference that medical expenses of $ 20 and additional emergency visits of $ 50 are charged. These co-payers are valid after payment of the deductible of $ 155. The new Policy M also provides similar benefits to Policy D, but only insures 50% of the surplus part and none B. The cost of Policy N is about 70% of the cost of Policy F. The cost of Policy M corresponds to about 85% of F. In total, the number of Medigap policies has been reduced from 12 to 10 policies.

Although Medigap is a supplement offered by private insurance companies to fill the gaps in the Medicare A and B parts, Medicare Advantage is offered by a privately owned government company to implement Medicare benefits. You must continue to keep parts A and B and continue to pay the part B bonus if you choose to sign up for a Medicare Advantage policy

Changes to Medicare Advantage policies, including reduced fees and mandatory application reports, will provide fewer amounts of benefits to Medicare Advantage members. For example, you can pay less for a Medigap policy than for a Medicare Advantage policy if you choose the Medigap N policy. Also, for Medigap Policy N, among other features, there are no restrictive registration deadlines, network restrictions, and costs of hospitalization.

Note that Medigap has no prescription protection, while some Medicare Advantage policies do. With a Medigap policy, you need to purchase separate prescription insurance from Part D. Before making a decision, you need to fully explore the options with an agent who can help you solve this complex puzzle.

The freedom to choose your doctor and hospital is the main reason why a supplement policy is used instead of a benefit policy. Many integration policies will insure all costs not insured by Medicare. If you choose a supplement policy, check which deductibles pay for your health insurance and which pay for visits to the doctor. Remember that you must also register separately for a prescription policy. If you do not take many medications now, you can now establish a basic policy. Every year, you can change your prescription policy. Medigap is not only a policy which covers the remaining 20%, it also helps whenever specialists make request over and above what was pre-approved as Medicare payments.