What’s The Advantage To Medigap And Medicare Part B Coverage?
April 3rd, 2010 | Published in Medicare Information
If you are nearing retirement age, you may know that you will already have Medicare Part A when you retire, but you might be confused about why you would need Medicare Part B coverage because of the premiums and you might have heard of Medigap insurance and are contemplating that policy instead. There are several differences between the two and you might be required to have Medicare Part A and Medicare Part B to be eligible for Medigap. The Medigap policy is meant to cover costs incurred when you get health care that isn’t covered by Medicare Part A and Medicare Part B.
Most people that take Medicare Part B coverage understand that Medicare Part A is a hospital policy, while Medicare Part B covers the services, treatments and fees that Medicare Part A doesn’t cover. While Medicare Part B will cover many of the things that will be part of your health care, in the event of a hospital stay or outpatient surgery, it is not 100% insurance coverage. This is where Medigap can help take on the liability for the remaining costs, although Medigap no longer covers prescription drugs. Otherwise, this is why it is considered a “gap” type of insurance or a Medicare supplement insurance policy.
Some people will consider Medicare Part C, which is a combination of Part A and Part B coverage and sometimes, it eliminates the need for Part D, which is the prescription portion of Medicare. The thing to consider in this situation is that your Medigap policy won’t apply to this coverage, so there is no need for it. Many people will consider the Medicare Part C plan or the Medicare Advantage Plan, which is offered through private insurance companies as a PPO or HMO plan.
When you are considering whether you need Medicare Part B and Medigap, you need to make sure you understand what coverage you get with each insurance plan. Many don’t understand Medicare and often, they don’t figure out what coverage they need until they have experienced a major medical problem and have a stack of unpaid and uncovered medical expenses. Medicare Part B will handle a portion of the bills that Medicare Part A doesn’t cover, but some people consider the Medicare Part C a better alternative, even though it is through private insurance companies and involves a premium, as well.
When it comes to medical supplemental policies, there are a number of them to consider that are better than the Medicare alternatives. For example, the AARP RX drug coverage is more attractive than the Medicare Part D coverage and many people think that the Medigap insurance policy from private insurers is a helpful way to cover the gaps in coverage that can be created during health care. Medicare Part A will cover your hospital stay, but Medicare Part B is a comprehensive policy to supplement it. When you are confused about whether you should consider Medicare Part B or Medigap, you might want to talk with a Medicare representative that can offer suggestions or make it easier to understand.