Insurance for Retirees: Medicare Advantage or Medigap Plans

Insurance for Retirees: Medicare Advantage or Medigap Plans

Medigap Insurance, commonly known as the Medicare Supplemental Insurance Plans, have gone through significant changes on June 1, 2010. Significant changes have been made to Medicare supplement plans. They offer Medicare insurance to cover co-insurance and deductibles, and beneficiaries of Medicare are obligated to pay for access to health care. Many plans have been canceled and new ones have been included. Medigap policies E, H, I and J have been deprecated. These have been defined as “Benefits for Home Recovery” and “Benefits for Preventive Care”. The new additions are the M and N plans, although it isn’t clear whether or not all agencies are presenting new ones. Meanwhile, all the new Medigap plans have added palliative care.

The new N plan offers similar benefits to Plan D, with a $ 20 medical commission and an extra $ 50 emergency call. The co-payments are valid after the payment of the 155 USD deductible. The M plan also offers similar benefits to the D plan, but it only provides half of the deductible part and plan B. Hence, the cost of the N plan is approximately 70% of the cost of the F plan and the premium of the plan M is around 85% of plan F. In summation, the total number of Medigap policies has been reduced to 10.

Although Medigap is a plan proposed by private insurance companies to quickly fill gaps in Medicare Parts A and B, a government approved private provider is offering Medicare Advantage the opportunity to realize Medicare profits. You must continue to keep Parts A and B and continue to pay the Part B premium if you choose a Medicare Advantage plan.

Modifications to Medicare Advantage plans, including compulsory reduced rates and loss rates, will offer lesser benefits to beneficiaries of Medicare Advantage. For instance, you may pay a less amount for a Medigap plan than for a Medicare Advantage plan if you choose the Medigap N plan. In addition, the Medigap N plan has no network restrictions, restrictive enrollment conditions, or hospitalization fees. among other features. . However, kindly note that there is no prescribing obligation for Medigap while Medicare Advantage plans remain. With a Medigap plan, you must purchase separate prescription drug insurance.

Before making a decision, you must carefully explore the options with an agent who can help you navigate through this complex insurance plans.

More importantly, 2 new plans, Medigap Plan N and Medigap Plan M have been added. The plans have included some features for cost-sharing to help reduce the premium plan. The M plan will only cover half of the deductible portion A ($ 1,100 per year for 2010). This will not insure the surplus of Part B (this is $ 155 per year for 2010). Finally, the M plan has no advantage for the “excess of Part B”.

Plan N, like plan M, will not insure deductible part B; However, it fully secures the deductible part A. Now, Plan N makes use of cost-sharing (for example, co-payment) to limit premium costs. N plan payments are $20 in the doctor’s office and $50 in the emergency room.