While Medicare does save beneficiaries money on medical costs, there are certain costs that they’re expected to pay out-of-pocket. While these costs can add up, Medicare is intended to save beneficiaries money and it’s important to have health insurance in case of a medical situation in the future.
If you’re doing research about Medicare and wondering if there are ways to reduce the costs, know that there are options available. Medigap is one of the best ways to make sure that you’re keeping your Medicare costs as low as possible, while still having access to the healthcare providers that you need.
Medigap
Medigap is supplemental insurance that’s only available for those enrolled in Original Medicare. The standardization of benefits makes Original Medicare an exceptional option for supplemental insurance. Medigap is one of the best ways to lower your Medicare payments and make sure that you’re paying as little as possible, while still receiving all of the same great care.
It’s important to note that Medigap does not provide beneficiaries any additional benefits within their policy. Instead, it reduces the amount they have to pay for some of the out-of-pocket costs that can come with Original Medicare coverage. If you’re currently enrolled in Medicare Advantage and wanting to enroll in Medigap, then you’ll need to switch your policy in order to do so.
The different Medigap policies
There are ten different Medigap policies, which include Plans A, B, C, D, F, G, K, L, M, and N. While they may look very similar on paper, it’s important to be able to differentiate between them so that you can make a policy choice that will work best for you.
One of the biggest differences between the Medigap policies is whether they offer total coverage or a percentage of coverage. While the difference between 50% and 75% may not seem significant to some, it can amount to a large amount of money in the future. Plans K and L are two of these plans that offer this cost-sharing benefit. Plan K covers most costs at 50%, while Plan L covers 75%.
If you’re looking for more comprehensive coverage, then Plans C, F, G, or N may be right up your alley. However, Plans C and F are only available to people who were eligible for Medicare before January 1, 2020. If this does not apply to you, then Plans G or N are good alternatives.
When looking through all of the different Medigap policies, pay attention to the details and take note of all the small differences between the ten different options.
Some policies have a high deductible option. While this may seem like an overwhelming choice to some, it can actually end up saving money in the long run. Choosing a high deductible plan can mean that you’ll save in other areas, so take everything into account when you’re comparing Medigap policies and deciding which one is the best choice for you.
Enrolling in Medigap
Medigap policies are sold through private insurance companies. You can enroll in Medigap during your Medigap Open Enrollment Period, which starts as soon as your Medicare Part B coverage becomes effective and you’ve turned 65.
At KBI Solutions, we believe in the importance of working with each of our clients to make sure that they have the information they need to make informed decisions. If this sounds like the right situation for you, give us a call today and we’ll set up a time to discuss your Medigap possibilities.
