Monday, October 17, 2016

Understanding What Medigap Insurance Covers

By Larry Price


If you are reaching the age of retirement, it is a good idea to start looking in to how you apply for Medicare and gap policies. First, it is important to understand what gap plans do. These plans are in addition to your government coverage that is purchased from private companies. The Medigap insurance pays for costs that your Medicare does not such as deductibles, co pays, and care you received outside of the country.

The gap plans do not cover hearing aids, glasses, vision care, or dental work. Additionally, private duty nursing and long term care is not covered by gap plans. Prescription medications are covered by choosing a separate policy under Part D. Gap coverage has its own monthly premium which is separate from Part D, prescription coverage, and Medicare B which covers doctor charges.

You are only eligible for this type of coverage if you already have Medicare part A and part B. Part A coverage pays for hospital expenses and as mentioned earlier, B covers doctor charges. If you have an Advantage plan you cannot buy gap plans. Learn which gap plans are available in your area. You can find all the information you need through the department of insurance can be found online.

Standard gap plans are labeled A through N, and provide various coverage levels. Side by side comparisons of these plans is always a good idea. Comparison helps folks choose the coverage that will best meet their needs. Keep in mind that if you are a new subscriber, you can not get E, H, I, and J plans.

The monthly cost for the gap coverage varies across the companies that offer the plans. However, benefits of the standard plans are the same. For example, gap plan C offers the same group of benefits no matter which company offers it. There are some states that have different standard gap policies.

The time to buy gap policies is during the period of open enrollment. Enrollment time is 6 months before the first day of the month you turn sixty five. In order to qualify for gap coverage need to have Medicare part B or be within six months of the date of enrolled. People can buy coverage during this time for the same cost a person with no health issues.

Attempting to purchase a gap policy after this window of opportunity has closed, does not guarantee you will be able to get the coverage. In the event that you do obtain coverage, you run the risk that your premiums will be higher. It is important to know that in addition to the premium you pay for Medicare B, you will be paying a premium to an insurance company for the gap plan.

The amount of the premium will be determined by your age, where you live, the company you purchase from, and the plan that you select. Once you have purchased your standardized plan, it is guaranteed renewable provided you pay your premiums on time. This guarantee extends even to those with pre existing health conditions.




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