The Medicare Supplement plans are a type of supplementary insurance which helps in supplementation of the Original Medicare plan. There are certain coinsurances and copayments which the original plan does not cover. There are many of us who do not know that if a person spends more than 45 days in a year in the hospital, the patients need to bear some of the hospital bills. The original plan does not provide coverage after that period.
A senior citizen who is suffering from any kind of terminal illness, the copayments can become a serious burden on them. The Original Medicare plans are generally sold by government bodies but the Medicare Supplement plans Medicare are sold by privately owned agencies. These plans are exclusively designed for senior citizens. Yet it was reported that only 30% person of the total senior citizens residing in the US come under the Medicare Supplement plans.
Benefits of the Medicare Supplement plans:
The benefits of owning a Medigap plan outnumbers the monthly burden of premium. If a person is insured under this plan, he gets supplementation when it comes to hospital and medicine bills. If the person wishes to receive treatment in a foreign land, the plan covers as much as 80% of the total expense. It also provides expense for hiring skilled nursing facility.
Since Medicare Supplement plans were designed exclusively for senior citizens, a person must attend the age of 65 to become eligible for this plan. There is a period called Medicare Supplement Enrollment Period which lasts for about 6 months and starts from the month the person turns 65 or more. There may be disqualification criteria for people who have pre-existing medical conditions. Either the company disqualifies the person or charges a higher premium amount from the person. It is very often found that a person pays more premium amount in spite of receiving basic benefits. The location of the insurer often comes into play while calculating the premium.
Apart from the location, there are several other factors that are taken into consideration. There are some companies who do not consider the age of the insurer but some agencies take the age of the insurer into consideration. There are certain limitations of a Medigap. It does not cover the expenses of Type D prescribed drugs. The Medicare Advantage plan may come in handy in such cases. If a person wishes to cover his entire family with Medigap, he has to buy separate plans for each of the family member. These plans are individualistic in nature.