The health insurance which is taken in addition to the Medicare insurance is Medicare supplemental health insurance. This basically is the add-on nature of the insurance that supports the Medicare insurance by paying for costs that are not covered by Medicare. These include charges such as co-payments, coinsurance, and deductibles. For the reason that it assists pay for gaps in the cost and compensations of the Medicare insurance, it is also known as Medigap insurance. Private health insurers offer the supplemental insurance plans; the prices for the plans differ from one insurer to another although the facilities offered by each plan remain same. The price of the Medigap policy depends on the type of plan one buys, the insurance company, the location, and the age of the policyholder.
Delos H Yancey , the president, chairman, and CEO of State Mutual Insurance states that common people has certain confusions regarding Medigap insurance which needs to be cleared before buying the policy. It is essential to remember that long-term care, hearing aids, vision or dental care, eyeglasses, or private-duty nursing are not covered under Medigap insurance. Also one must keep in mind that Medigap policies that used to be sold in the past cover prescription drugs, but Medigap policies sold post January 1, 2006 are not permitted to comprise prescription drug coverage. If you want prescription drug coverage plan, then there are other policies that you can look for.
State Mutual Insurance has successfully assisted many policyholders for more than seventy five years by offering them various benefits and advantages. In order to avail the benefits, the policyholders need to pay the private insurance company a monthly premium for the Medigap policy as well as the monthly Part B premium that is paid to Medicare. Moreover, any standardized Medigap policy offers the facility of renewable even if the policyholder has health problems. This means the insurance company cannot cancel the Medigap policy as long as the premium is paid.
Medigap policy usually works in the following way:
The policyholder pays a premium on a monthly basis for the Medicare supplement plan. In response, the plan pays maximum of the out of pocket expenditures. Thus, when the individual visits the physician, for instance, one does not have to pay the coinsurance required by Medicare. In fact the Medigap plan pays it for the policyholder. With certain Medigap plans, one may have copay in place of the coinsurance. A Medicare supplement plan is considered as an excellent choice for those who through a military benefits or an employer already have prescription coverage.
Individuals who are interested in buying Medigap plan; the open enrollment period is six months from the first day of the month of the person’s 65th birthday.
Delos H Yancey is a Certified Insurance Examiner, a Certified Financial Examiner, and a fellow of the LIMRA Leadership Institute. Apart from serving as the CEO of State Mutual Insurance, he is a supporter of Habitat for Humanity which is a non-governmental, international, and nonprofit organization in the United States.