Should You Buy A Medigap Policy
Retirement should be a time in a person’s life where they are carefree and can just enjoy life without work and worry. Of course, that’s not always the case. Many retirees have scrimped and saved throughout their entire career and don’t want to risk losing everything because of insurance benefits that are not covered in their Medicare plan. That’s where the Medigap plans come in. A Medigap policy is Medicare supplement insurance policy that can fill in the gaps where your Medicare plan leaves off.
There are twelve Medigap policies to choose from. They are provided by private insurance companies and you must participate in Medicare part a and part b. Medigap only will work with the original Medicare plan. This is important because if you have the original Medicare plan and a Medigap policy and are thinking of changing to a Medicare Advantage plan you will probably want to drop the Medigap policy. Check with your State Health Insurance Assistance Program and the insurance company that provides the Medigap plan before you do though, because once you drop it you may not be able to re enroll. No one should try to sell you a Medigap policy if you are in the Medicare Advantage plan unless you are enrolling in the original Medicare plan.
It is important that you go through each of the twelve Medigap plans to decide if one is right for you. They are not Medicare plans and only serve to fill in gaps in coverage that the original plan does not cover. The best time to purchase a Medigap plan is during the open enrollment period. This period lasts for six months from the month you both turn 65 and become enrolled in a Medicare part b plan.
The way insurance companies set the prices for their Medigap policies can be confusing. There are three ways the prices are set. The first is Community rated. This pricing has no difference in price based on the age of the insured. The price is the same for everyone regardless of age. Next is issue age rated policies. This means that your age will determine the price at the time you purchase the plan but will not change because of your age as you get older. The plan may increase for other reasons such as inflation, but not your age. The third type is attained age rated plans. These plans will be the lowest cost for younger buyers but will continue to rise as you age.
There are many rules and restrictions to buying a Medigap plan. The best information you can find is from the government publications on Medigap plans. With all the different costs and situations that could change your eligibility you should check with your state insurance department to help you work your way through the maze. Retirement is a time of life that you should enjoy. You will be able to enjoy your retirement without the weight of insurance costs on your mind if you take the time in the beginning to learn your rights.
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