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Medicare Supplement Plans also known, as Medigap is a private health insurance that is supplementary to the original Medicare policy. Which means that the Medicare Supplement Plans helps to pay some of the health care costs that the original Medicare does not cover. In other words it bridges the gap between the policy coverage of the original Medicare and the total amount payable. It is somewhat like copayments, coinsurance, and deductibles. The Medicare supplement policies sometimes may also cover certain things that the original Medicare does not cover. The point is that if you are having a Medicare policy it would pay for its coverage but along with that if you are also having a Medicare supplement plan it would help you pay the remaining amount of the medical cost that is left aside by your original Medicare policy. But it should be remembered that Medigap is somewhat different to the original Medicare policy.
Though Medicare Supplement Plans are not directly under government supervision or administration but still every Medigap policy must follow certain state laws and must be clearly identified as Medicare Supplement Insurance”. According to the rules the Medigap insurance companies can sell only 12 standardized Medigap policies. These policies are identified under the letter cover from A through L. And it is also to be noted that each Medigap policies must offer the same basic benefits, irrespective of whatever company may be selling them. The only thing that can differ from company to company is the amount of premium payable by the beneficiary. The point is that if you purchase a Medigap policy from any company under any letter cover the benefits must be same as provided by other companies under the same letter cover, for example, if you want to purchase a policy under the letter cover C or D the policy coverage and the benefits would be the same irrespective of whatever company you may choose.
In most of the cases the Medicare Supplement Insurance companies can only sell standardized Medigap policies. It is also that the companies must mention the specific benefits that they offer so that you can easily compare them. It may be that each and every company may not offer every Medigap plans A through L, but they are bound to provide clear information about the policies they are dealing with. But the fact is that each company must provide Medigap plan A if they wish to offer any other Medicare Supplement Plans. However to sell the rest of the policies should be decided by the company themselves, although law might affect which ones they offer. But also with that as the Medigap plans are mostly administered by the private companies therefore the amount of the premium payable is totally under their consideration.
Another thing to be mentioned is that once you purchase a Medigap Insurance plan the insurance company must keep renewing it. And they also cannot change the policy coverage or the benefits that they promised to provide while purchasing the plan unless there is any failure on your part in paying the premium. However, the company can increase the rate of premium but that too with prior notice.
By: William Richards
Though Medicare Supplement Plans are not directly under government supervision or administration but still every Medigap policy must follow certain state laws and must be clearly identified as Medicare Supplement Insurance”. According to the rules the Medigap insurance companies can sell only 12 standardized Medigap policies. These policies are identified under the letter cover from A through L. And it is also to be noted that each Medigap policies must offer the same basic benefits, irrespective of whatever company may be selling them. The only thing that can differ from company to company is the amount of premium payable by the beneficiary. The point is that if you purchase a Medigap policy from any company under any letter cover the benefits must be same as provided by other companies under the same letter cover, for example, if you want to purchase a policy under the letter cover C or D the policy coverage and the benefits would be the same irrespective of whatever company you may choose.
In most of the cases the Medicare Supplement Insurance companies can only sell standardized Medigap policies. It is also that the companies must mention the specific benefits that they offer so that you can easily compare them. It may be that each and every company may not offer every Medigap plans A through L, but they are bound to provide clear information about the policies they are dealing with. But the fact is that each company must provide Medigap plan A if they wish to offer any other Medicare Supplement Plans. However to sell the rest of the policies should be decided by the company themselves, although law might affect which ones they offer. But also with that as the Medigap plans are mostly administered by the private companies therefore the amount of the premium payable is totally under their consideration.
Another thing to be mentioned is that once you purchase a Medigap Insurance plan the insurance company must keep renewing it. And they also cannot change the policy coverage or the benefits that they promised to provide while purchasing the plan unless there is any failure on your part in paying the premium. However, the company can increase the rate of premium but that too with prior notice.
By: William Richards