Medicare supplement plans, also called Medigap policies, help pay some of the out-of-pocket costs that Original Medicare doesn’t cover. They are sold by private companies and can be an important way to reduce your out-of-pocket medical expenses.
The best Medicare supplement plan is one that offers a balance of coverage and costs to meet your needs. This can depend on your budget, health care preferences and medical See More Information history, so it’s important to evaluate your situation and make an informed decision before buying a policy.
Choosing the right plan is complicated and requires a comprehensive understanding of Medicare and how it works with Supplemental insurance. Your best bet is to work with committed, licensed agents who understand your needs and find you a Medicare Supplement plan that suits you.
Your eligibility for a Medicare supplement plan depends on your age and the type of Supplemental coverage you buy. For example, if you’re younger than 65, you can enroll in a Medigap policy without having to go through underwriting, which involves a medical review and testing. However, if you’re older than 65, you must undergo underwriting.
Premiums for Medicare supplement policies are regulated by the Indiana Department of Insurance. They are calculated in one of three ways: Issue Age, Attained Age or No Age Rating.
Attained-age rated rates are the least expensive as a person first buys the policy, but they can increase over time. This is because the premiums are based on the average age of people who are purchasing policies, so they can become more expensive as you get older.
For example, if you purchase a Medigap policy with an attained-age rating, you could have to pay a higher premium as you age because your risk profile increases.
If you’re unsure about which Medicare supplement plan is right for you, talk to a trusted financial adviser who can provide an in-depth analysis and recommend the best option for your budget. They will be able to identify if you have any health conditions that might affect your premiums, and will help you find a plan that fits your needs without breaking the bank.
A Medicare supplement plan can also help you save on copayments and deductibles that Original Medicare doesn’t cover. A high-deductible policy can lower your out-of-pocket costs for things like doctor visits and eye exams.
Preventive health services such as blood screenings and shots are not covered by traditional Medicare, so many beneficiaries end up spending more than they need on these preventive visits and tests. A Medigap policy can make it easier for more beneficiaries to access these essential services, which could result in less spending overall on health care.
For more information on Medicare Supplement plans, visit the Medicare website. There you can find policy descriptions and a list of insurance companies that sell Medicare Supplement policies in your area. You can also search for Medigap plans by using a search tool on the website.