Medigap health plans are nothing but archiving operations. Unlike Medicare Advantage plans, Medigap plans don’t make decisions on what to cover. Medigap doesn’t have a chain of doctors and hospitals. What they do is pick up a specific portion of your medical bills that are not covered by your Medicare. For example, Part A or Part B deductibles or copays. If your Medicare paid the bill and somehow you still owe a part of the bill, then Medigap will pay it without any questions asked.
Medigap Plans Are Available in Standardized Varieties
In all the states (excluding Massachusetts, Minnesota, and Wisconsin), the Medigap plan comes in 10 standardized benefits packages. They vary based on the amount of expenses they will pick up. The more expense the plan picks up, the higher is the premium for it. One of the most popular plans is Plan F. It pays for almost everything that Medicare won’t pay. It even includes the 15 percent extra charges that you might be billed by certain doctors who do not accept Medicare as payment in full.
There Is No Rating for Medigap Plans
Many consumers are surprised to find out that Medigap plans don’t have ratings as opposed to Medicare Advantage plans that display rating information. So, there is very little to base the Medigap plan ratings on. But the benefits of Plan F remain the same regardless from which company you buy it. In nearly all the cases, companies get information on your Medicare bills directly from Medicare and pay their percentage accordingly. They don’t usually have a chain of doctors or hospitals. Also, the rules for Medigap differ from place to place, just the way it does for the Medicare Advantage. The federal government sets minimum rules to protect consumers but many of the states have added additional consumer protections over these.
Types of Premium Pricing Methods for You to Choose
An inexpensive looking policy which you buy at the age of 65 can turn out to be the most expensive by the time you reach 80. Insurance companies have three different ways of setting premium prices (Note – Some states you may have only one or two choices):
Community (or no-age): Regardless of age, the same premium is charged to everyone.
Issue-age: The premium depends on the age at which you first purchased the policy. It doesn’t increase with age, but it increases due to cost inflation.
Attained-age: The premium starts low and increases as you get older. Over time, this policy is the most expensive one.