The 3 Things You Should Know About Medigap Plans
You’ve already heard that your Medicare Plan is headed
for a few major changes, and that Medigap Insurance will
be affected by them.
Starting on January 1, 2006, insurance providers will no
longer be able to sell Medigap H, I, and J plans that include
coverage for prescription drugs. That’s because Medicare
will begin offering prescription drug coverage through its
new Part D prescription medications program.
You’ll still be able to purchase H, I, and J plans – just
without their prescription drug coverage component.
But in case you’re a Medicare beginner, here’s
3 things you need to know about Medigap:
- If you don’t buy your Medigap policy during Medicare’s “open
enrollment” period, you may have problems when it’s
time to buy the Medigap policy you’re interested
in later.
- There are only 10 standardized health plans
that can be offered as Medigap policies. Each has to cover
certain
healthcare
services, regardless of which state you’re in. A
Medigap policy pays for most, if not all, of your Medicare
coinsurance
fees. Others provide coverage for services and deductibles
that aren’t covered by Medicare such as preventive
care and prescription drugs.
- Each Medigap Plan comes
labeled with a letter from "A" through "J".
That means you’ll be able to identify and buy the
Medigap plan that best suits you. Generally speaking, as
the plan
letters progress, so does the available coverage . . .
i.e. Medigap Plan "A" provides basic benefits,
while Plan "J" will provide you with the highest
level of coverage. It’s also important to remember
that all 10 letter plans aren’t available in every
state.
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