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Essential factors to know about Medicare supplemental insurance

People with Medicare are aware of some costs that the Medicare doesn’t cover. Costs like copayments, coinsurance, and deductibles are not covered by Medicare. To cover these costs, there is another policy known as the Medicare Supplement Insurance policy which is also known as Medigap. Medicare supplement policies are sold by private companies. Some Medicare supplement policies cover services that the original Medicare does not cover. One such service includes medical care during international travel.

What is Medicare Insurance?
Medicare is a health insurance that caters to people above the age of 65. Medicare also provides insurance for people under 65 with certain disabilities, including end-stage renal disease. There are two Medicare insurances that you can choose from- Original Medicare and Medicare Advantage.

Original Medicare supplemental insurance
This is the fee-for-service coverage for which the government directly pays your providers the claim for Medicare. This is further divided into Part A and Part B. Part A covers in-patient care in hospitals, in-patient care in skilled nursing facilities, hospital care services and home health care services. If you paid Medicare while working, then you don’t have to pay a monthly fee for the Part A coverage of Medicare. Part B helps cover some necessary medical services like Doctors’ service, out-patient care, home health care services and medical services. You need to pay a monthly premium in order to get the Part B coverage.

Medicare Advantage
Also referred to as Medicare Part C or MA Plans are offered by private companies those have been approved by Medicare. Medicare Advantage takes care of your entire Part A and Part B original supplement insurance. All Medicare Advantage plans do not work in the same way, some plans require referrals to consult a specialist and out-of-pockets may also vary. The various Medicare Advantage plans include the following.

  • Health maintenance organization (HMO)
  • Preferred Provider Organization plans (PPO)
  • Private fee-for-service plans (PFFS)
  • Medical savings accounts plans (MSA)
  • Special needs plans (SNP)

Optional Prescription Drug Coverage
This is also known as Medicare Part D, it is a prescription drug option run by private companies approved by and under contract with Medicare in order to help cover the cost of the prescription drug. This is also done to help protect against higher costs in the future. Hereby Medicare supplement insurance works out for the best and keeps you in safe hands.

The cost of Medicare supplemental insurance plans for senior citizens depends on what each individual is looking for; supplemental health insurance plans for seniors or Medicare supplement insurance plans. Although they are very similar in terminology, they are both very different.

Supplemental health plans designed specifically for the needs of seniors are known as senior supplements. Dental, vision and life insurance are some of the services included in the supplementary health insurance. These plans are not at all related to Medicare and are sold by other private health insurance companies. They can be purchased by an individual at any time.

Medicare supplemental insurance plans are related to Medicare with each plan offering a different benefit that comes along with a different premium amount. Expenses left out by original Medicare coverage is covered by Medicare supplemental plans. However, Medicare supplemental insurance plans do not include dental, vision or any other supplemental health insurance benefits.

Getting to the cost of supplemental health insurance for seniors depends on the health insurance company, the type of plan and benefit level that each individual opts for. These amounts vary with every individual and seniors can purchase the following plans as per their need.

  • Dental – $21 to $43
  • Vision – $10 to $18
  • Fixed Indemnity – $27 to $ 427

The cost of Medigap or Medicare supplement insurance is generally more complicated to find as health insurance companies price Medigap based on three ways that are, community-rated where premiums aren’t rated based on age; issue-age- the age of the insuree will dictate the monthly premium that you pay; attained-age rated where premiums simply increase with your age. Each Medigap plan’s cost varies with each health insurance company. The cost of these plans can range anywhere between $75 and $425. But, before you jump to any conclusions and settle down with a Medicare plan, make sure that you compare benefits offered by other plans as well, as you can get a better deal elsewhere.

Dropping the Medicare supplemental insurance policy
If you want a policy entirely different from the Medicare supplemental insurance policy or switch to a Medicare Advantage Plan, or drop the entire Medicare Supplemental Insurance policy, make sure to choose the right time to drop or change your policy. You may be charged with a late enrollment penalty when you join a new Medicare drug plan.

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