Original Medicare provides a wide coverage of hospital and the medical expenses, but not all the costs of services and medical supplies that one may need. Medigap sets in to fill some gaps left by the original Medicare.
Standardized Medigap plans
The Medicare Parts A and B include some out of pocket expenses such as coinsurance, copayments and deductibles. That is where Medigap insurance sets in. There are different Medigap plans that cover various parts of Original Medicare costs. The plans are offered by private health insurance Florida companies.
There are basically 10 standardized plans available in all the states, excluding Wisconsin, Massachusetts and Minnesota. The plans are designated with letters, starting from A to N. any single Medigap plan has the same benefits, irrespective of where you purchase it from. For instance, Medigap Plan M purchased in Boston has similar coverage as that bought in Laredo.
Medigap insurance require payment of premiums per month. But since the plans are offered by private insurance providers, the costs of each plan might differ significantly. a Plan M bought in Boston may not cost the same price with that purchased in Laredo, though coverage is similar.
Each of the companies that provide Medigap plans use any of the following rating systems:
Community rated: under this system, every beneficiary is charged same amount of premium, irrespective of their age. The premium does not increase as one gets older but may do so due to inflation.
Issuing age rated: the premium is based on the beneficiary’s age when they first buy a Medigap policy. Premiums are generally lower for those that are younger. It also doesn’t increase with age, but may be affected by inflation.
Attained age rating system: in this system, premiums are determined by your current age and will increase as you age. Premiums are generally higher for older buyers.
You should note that apart from the Medigap premiums, you are required to continue paying your Original Medicare premiums as well. Some of the providers in Florida include Blue Shield and Blue Cross Florida.
Are you thinking about enrolling for a Medigap Plan? Explore your options with Medicare Medics for the most comprehensive and affordable rates.