The Benefits of Medicare Supplement Plans

After celebrating your 65^th birthday, you’ll soon have to start learning about Medicare and what plan works best for you. Although it won’t be as exciting as your birthday party likely was, it is still essential that you understand the basics of what Medicare is, and how it relates to you.

Medicare is government health insurance for those ages 65 and older (or with a disability and under 65). There are four basic parts to it. Medicare Part A is your hospital insurance, while Part B is any medical expenses you incur. Part C is through private health insurance companies and is a combination of Part A and Part B. Lastly, Part D is coverage of your prescription drug costs and are also offered through private health insurance companies.

The downfall to Medicare, however, is that there can be gaps between the four standalone coverages. You could end up with unexpected expenses in which you have no coverage for. That is where Medigap plans come in to play.

As the name would suggest, a Medigap plan fill the “gaps” between the original four Medicare plans. You would go through a private health insurance company to purchase addition Medigap coverage onto of your Medicare government insurance.

Is it worth getting a Medigap plan? Consider some of the following benefits to help you decide.

Coverage Outside the United States

One benefit that is appealing to retirees is the additional coverage they receive from Medigap plans when traveling outside of the United States. Since you are in your retirement years and many use those moments to travel and explore the world, you may spend much time outside of the country. Having the extra coverage will ensure you are not faced with additional expenses that could put you over budget.

Cover Remaining Medical Bills

Even if you have Part B of the original Medicare plans, there may still be some costs of your prescriptions left to you. Roughly 20 percent of the cost could still be your responsibility to pay. For expensive medical supplies, that 20 percent could quickly add up over time. But with a Medigap plan though, it could cover some of, if not the remaining 20 percent, so you are left with little to no expenses.

Variety of Options

With the additional Medigap plans, you have a wide range of coverage to choose from. Having options when it comes to your insurance is ideal. It allows you to pick what best suits your life. If you are someone who has expensive monthly prescriptions, you could have a Medigap plan to help with that. If you rarely spend money on drugs though, you could go for a different plan that is more suitable for you.

“Trial” Period

With Medigap plans, you have a 30 day trial period. This means that if you want to try out a different plan, you have 30 days to decide if you’re going to keep that specific additional insurance or convert back to your original plan. The trial period allows you to see what best suits your needs, and to test out different options before committing.