About Medicare

What is a Medicare Supplement Insurance?

The world of Medicare can be a bit confusing, but a few basics can help you make wise decisions for your medical expense needs. Medicare Supplement, also known as Medigap, is a health insurance plan that is sold by private insurance companies to help cover expenses or “gaps” left by Original Medicare coverage. These plans are designed to pay your personal share of the medical expenses not paid by Medicare, including coinsurance, copay, and deductibles. When medical bills mount up, the copay portion can become a burden for many Medicare patients.

How Medicare Supplement Works

If you are enrolled in the government’s Original Medicare program, the basics of your doctor and hospital bills are covered and paid for by Medicare. However, you are required to share in the costs, as the government does not completely subsidize your medical expenses. Each Medicare recipient has a certain amount of allowable expenses based on his or her income. When larger expenses are incurred, the recipient is required to cover the remainder. When a major surgical procedure brings in bills over $100,000, for example, the patient could still be left with over $15,000 to pay himself. A Medicare Supplement plan is designed to cover those costs.

Medicare Supplement That Works for You

With the cost of medical care today the burden left to Original Medicare recipients can be staggering. The right Medicare Supplement can relieve the financial risk of unexpected medical expense. We offer excellent Medicare Supplement choices to protect your finances. And while your medical insurance is ultimately your choice, we are ready to provide complete consulting services to help you determine the best course for your personal insurance needs.
Many employers and unions offer Medigap coverage for their employees and retirees. It’s vitally important that you purchase a Medigap policy during your open enrollment period, because if you wait you may not be able to select the Medigap policy of your choice.

Medicare Coverage

You’re likely now wondering what types of supplemental coverage are available through Medigap plans. The coverage offered depends upon the plan, but Medigap insurance generally provides additional coverage for medical expenses that would otherwise come out-of-pocket, such as:
  • Co-payments
  • Co-insurance
  • Deductibles
  • Medical services outside the United States
  • Additional preventive services not covered by Medicare Parts A and B
For instance, assume you purchase a Medigap policy that provides coverage for Plan B co-insurance but not the Plan B deductible. Then, you must pay the first $155 for doctor visits in a year to fulfill your deductible, but the Medigap insurance covers the remaining 20 percent co-insurance for the remainder of the year that you would normally have to pay under Part B coverage.

All Medigap insurance coverage provides the following basic coverage:

  • Part A co-insurance/co-payment (not the deductible) and the cost of one year of    extra hospital care after the end of Medicare coverage
  • Part B co-insurance (usually 20 percent of the amount owed after the deductible)
  • The first three pints of blood
  • Part A co-insurance for hospice care

Types of Medicare Plans

No matter from what insurance company you are purchasing Medigap coverage or how much you are paying, the types of Medigap plans are standard, labeled A through N; although, policies E, H, I, and J are no longer sold to new enrollees after June 1, 2010 (But, they are still continued for those who bought them prior to that date). Plan A is the most basic, with services fluctuating with other policies. Plan coverage includes:
  • Policy A – Basic benefits
  • Policy B – Basic benefits, Part A deductible
  • Policy C – Basic benefits, Part A deductible, skilled nursing facilities, Part B deductible
  • Policy D – Basic benefits, Part A deductible, skilled nursing facilities, foreign travel emergency
  • Policy F — Basic benefits, Part A deductible, skilled nursing facilities, Part B deductible, foreign travel emergency, Part B excess charges
  • Policy G — Basic benefits, Part A deductible, skilled nursing facilities, foreign travel emergency, Part B excess charges
  • Policy K — Basic benefits, 50 percent of Part A deductible, 50 percent of skilled nursing facilities, Part B deductible, foreign travel emergency, Part B excess charges
  • Policy L – Basic benefits, 75 percent of Part A deductible, 75 percent of skilled  nursing facilities
  • Policy M — Basic benefits, Part A deductible, skilled nursing facilities, foreign travel emergency
  • Policy N — Basic benefits, Part A deductible, skilled nursing facilities, foreign travel emergency

Medigap Premiums

Purchasing Medigap Insurance is voluntary, and the beneficiary is responsible for paying monthly or quarterly premiums to the Medigap insurance provider, with the payment  ranging widely depending upon the depth of the coverage provided and the company that is providing it.
Contact us for more information: charles@azreins.com
Medicare Supplement Application 2013