Mastering Medicare, part 4: Protect your health and your wallet with Medigap plans
During retirement, you want to be sure all your health care expenses will be covered — but Medicare alone might not be enough. That’s where Medigap, also known as Medicare Supplement Insurance, comes into play. These plans are designed to fill the gaps left by original Medicare, helping you to reduce out-of-pocket costs.
Alex Uhm, VP and General Manager of Medicare at Blue Shield of California said “for Medicare beneficiaries who enroll in original Medicare, it is advisable to consider purchasing a Medigap plan.”
Medigap plans significantly benefit older adults by allowing them to choose any doctor or hospital that accepts Medicare, offering more flexibility in their health care choices. Plus, Medigap policies often cover emergency medical care outside the United States and other supplemental advantages, providing added value for the premium.
How to pinpoint the right Medigap plan for you
When selecting a Medigap plan, you should compare your options carefully.
“A good source for comparing Medigap plans is www.Medicare.gov,” Uhm said. This resource allows seniors to explore the various plans, review the benefits and find health insurance companies that sell Medigap policies in their area.
Uhm advises that “beneficiaries should choose a plan that fits their budget, as Medigap plans are premium policies with potential underwriting requirements.” He also said it’s important to start the comparison process early, ideally at age 64, to allow yourself enough time to find the best fit.
One important factor to remember is that Medigap policies only cover one person, meaning each individual will need their own policy. Uhm emphasizes the need for older adults to carefully assess their budget and health care needs when choosing a plan.
How Medigap plans work with Medicare
Medigap is designed to help older adults reduce the financial burden of health care.
“Seniors who have Medigap can see any doctor who accepts Medicare,” Uhm said. “A Medigap policy works with original Medicare to get the medical claim information, after which it pays the doctor whatever amount is owed based on the policy. Seniors may have to pay any remaining costs.”
By understanding the nuances of Medigap plans, you can be certain you will have the full protection, care and peace of mind you need as you enjoy your retirement years. Thank you again to Alex Uhm for providing his Medicare insights and expertise with us for this series.
*This article contains general health information and is intended for educational purposes only. It is not a substitute for professional medical advice, diagnosis, or treatment. Always consult a qualified healthcare provider if you have medical questions and before making any decisions or changes related to your health.
This story was originally published August 19, 2024 at 1:43 PM.
