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Medicare Supplemental Insurance
There are now a total of twelve standardized Medicare supplemental insurance policies. They are labelled A through L and are more popularly known as Medigap plans. Each of these twelve plans has a different set of benefits, with A serving as the core policy and B through L containing the core benefits and a combination of other benefits. So, how do you choose the best among these twelve plans?
Firstly, if you are eligible for Medicaid then you do not need Medicare supplemental insurance or Medigap because Medicaid will cover your healthcare expenses. Secondly, if you are not eligible for Medicaid but you are within the federal poverty level then you still do not need Medigap. Instead, you can take advantage of a government program called Qualified Medicare Beneficiary Program or QMB. Under this program, your Medicare premiums, annual deductibles and co-insurance amounts will be taken care of.
The first thing you need to take note of is that federal law allows any individual aged 65 and above to enrol in any of the twelve supplemental policies within six months after being covered by Medicare Part B. Connecticut residents are even allowed to enrol in Medigap beyond the six-month period. You also need to remember that if you have prior coverage in a Medigap policy, this also counts in the six-month waiting period for coverage of any pre-existing medical condition.
To complement the core policy, and to address the specific needs of each member, policies B through L includes any combination of additional benefits such as Part A skilled nursing facility co-insurance for days 21-100 and Parts A and B deductibles. Part B charges beyond the amount approved by Medicare are also covered. Moreover, there are supplement policies that cover foreign travel emergency, home recovery and preventive medical care.
If you believe that the above-mentioned “gaps” are, or may be, an integral part of your healthcare needs, then it is most advisable for you to purchase Medicare supplemental insurance. If, however, you feel that the amount that you will shell out for these components will be considerably less than the premiums of a supplemental coverage, then it may be best for you to stick with the traditional plan.
