After retirement, the older adult is faced with numerous decisions about their health care plans. Of course, one of the decisions that they will face is selecting the best Medicare supplement plans for their retirement years. Certainly, there is a certain amount of confusion over the selection process. These supplement plans are actually extra insurance plans that provide coverage for the health care costs that the original Medicare does not cover. For example, many of the health care cost that original Medicare does not cover could end up costing the retired individual more than they imagined.
What Medicare Does Not Cover
First, it is important to understand that original Medicare Part A & Part B does not cover all health care cost. Original Medicare Part A & B does not cover such health care cost as co-payments, deductibles, and co-insurance. However, the supplemental plans fill in the gaps that are not covered by Medicare. Those are Medigap policies. Medicare is provided by the federal government. However, the Medigap policies are provided by private or independent insurance agencies. The Medigap policy will help to ease the financial burden of the extra health care cost that is faced by many retired people.
Who is Eligible for Supplement Plans
Those that are eligible for Medicare Part A & Part B are also eligible for Medicare supplement plans. The Medicare Supplement plan works together with the Original Medicare, providing coverage for the health care cost that is not covered by original Medicare. Still, much depends on the state that you reside. For example, some states allow a person under 65 and disabled to apply for supplemental insurance, while others do not. Still, it is advisable to talk this over with a Medicare adviser or specialist to determine your own options.
How the Insurance Plan Works
Let’s take a closer look at the way that the supplemental plan works with Original Medicare. Perhaps, you have a medical bill that is $1,000 dollars. Medicare will pay their share, which is 80 percent of the bill. The Medicare Supplemental Plan will pay the other 20 percent, if you have a Medicare Supplement Plan that provides coverage for Part B or co-payments and co-insurance. Of course, there are plenty of options for other coverage in the supplemental plans that are worth your close attention too. The plans will save you money on health care cost in the long run. However, it is also a good idea to research around for the lowest supplemental insurance rates because they vary widely.
Medicare Supplemental Plans Available
The good news is that there are several Medicare supplemental plans that are available for your consideration. There are about 10 Medigap plans available. Discuss those options with an adviser for more information.
Of course, it is important for the retired individual to research all the plans that are available. Next, compare the rates that are charged by various private agencies for the supplemental plans. Then make your selection.