Medigap is often a very misunderstood policy. People fail to recognize the fact that Medigap is a great way to reduce their hospital bills it would not cover every single expense that you make. In such a case, it becomes very important to for you to throw the myths away and believe solely in the facts of Medigap. Today, we would be discussing about a few myths that have been surrounding the Medigap policies so that you can get a clear idea of what exactly you are buying.
Myth #1- Medigap can replace Medicare
This is the biggest myth that has been passed over to thousands of people. The fact is that Medigap is a Medicare Supplement policy. It is not an alternative or a replacement to the Medicare policy. The name ‘Medigap’ suggests the purpose of these policies. They would be filling in the gaps or the voids between your hospital bills and your Medicare coverage. They had been designed to ensure that at times of critical medical emergencies or any other frequent medical needs, the seniors are not left unprotected and they have a safety net to fall back on, once their Medicare benefits are over.
It is very important to be enrolled in the Medicare policy if you wish to use the Medigap plans. You have to be a subscriber of Medicare Part A and Part B and at least 65 years of age in order to qualify for Medigap. The Medigap plan benefits would apply as soon as your Medicare benefits run out. It cannot be used any sooner than that. Therefore, you must not take it as a replacement, but an additional layer of protection.
Myth #2- Medigap is a federal benefit
This is also a very wrong notion. Medigap is not a federal benefit. The government only provides you with the Medicare policies and nothing else in senior health insurance. Medigap on the other hand, is provided by the private insurance companies. You have to pay a monthly premium for getting the Medigap benefits and these premiums would be different for every company.
Myth #3- Medigap is a good option for high income people
Again, Medigap is not designed to help the high income group. It has been designed for anyone who wishes to get additional benefits over his Medicare policy. They are not very expenses policies. In fact, there is such a huge variety of quotes that you can get in Medigap that you would not get anywhere else. If one company is charging $200 as a premium for one policy, the second could be charging $190 for the same policy. There may also be companies that are charging a price of $230 as well. Therefore, there is a lot of variety in the price that you could be paying for your preferred Medigap policy. No matter which income group you belong, you can always be getting a Medigap policy for yourself. Remember, you have to focus on getting the right policy more than the price. The price variations from company to company are so significant that no one can really tell you an exact average. The best thing to do would be comparison shopping at MedicareSupplementalInsuranceQuotes.com. Start looking around for the options that you have and you would definitely get something good to hold onto.
Myth #4- Medigap policy premiums would remain the same all the time
This is also untrue. You must never take the Medigap policy premiums at their face value. The premium on day one would never be equal to the premium on day 300 and so on. The policies generally adjust according to the inflation rates. Therefore, the premium rates are also bound to increase. There are some policies like Plan G, Plan M and Plan N that offer a good coverage with smaller premiums in general. Plus, their premiums also progress at a very slow pace. Therefore, they are better policies in this case. You must make sure that you have not bought an attained-age plan if you comparatively younger. In these policies, the premium rates would keep on jumping high. You would be paying according to your growing age and thus, the premiums would start out very low but would be snatching a huge chunk of your finances in a year or so. You must opt for community-age or no-age plans or the issue-age plans. Their premiums might appear to be a little higher in the beginning, but they remain fairly constant and do not pace as highly as the attained-age plans.
Myth #5- Out-of-pocket expenses do not exist in Medigap
No matter what kind of an insurance you buy, a few out of expenses are mandatory. Co-payments and deductibles need to be paid with Medigap as well. For example, the deductible amount of Plan F, the most popular plan in Medigap, can easily cross a thousand dollars.