Medicare Advantage Polices or Medigap: The New Option for Retired People
Medigap insurance, often known as Medicare supplement polices, went through significant changes on June 1st, 2010. Important transformations have been done on Medigap. It provides health insurance to insure co insurance and deductibles, & Medicare beneficiaries must pay for access to health care. Several polices have been canceled and new ones have been added. Medigap polices E, H, I and J have been eliminated. These were called “Home Recovery Benefit” and “Preventive Care Benefits” polices. The new additions are the M and N polices, although it is not certain that all companies offer new ones. However, all new Medigap polices have added hospice care.
The new Policy N has similar benefits to Policy D, unless there is a $ 20 medical fee and an additional $ 50 emergency call. These co payments are valid after they have paid the $155 deductible. The new policy M also offers similar benefits to policy D, but only insures half of the overcoming of any deductible part and part B. the cost of the N policy is about 70% of the cost of the F policy and the cost of the M policy is about 85% of F. In total, the number of Medigap polices has been reduced to 10 plans. Although Medigap is a policy offered by private insurance firms to fill the gaps in Part A and B Medicare soon, a private company with government contracts offers Medicare Advantage to realize their Medicare profits. You must continue to maintain Part A and B and continue to pay the Part B premium if you choose a Medicare Advantage policy.
Changes affecting Medicare Advantage polices, including mandatory loss rates and reduced fees, will provide fewer profits to Medicare Advantage members. For instance, you can pay less for a Medigap policy than for a Medicare Advantage policy if you choose Medigap Policy N. In addition, the Medigap N Policy has no network restrictions, restrictive enrollment terms or hospital charges, among other features. However, keep in mind that Medigap has no prescription requirements while there are Medicare Advantage polices. With a Medigap policy, you need to purchase separate prescription drug insurance.
Before making a decision, you should explore options thoroughly with an agent who can help you navigate this complicated insurance maze. Perhaps more importantly, they have added two new polices, Medigap Policy M and Medigap Policy N. These polices added a few cost sharing features to help reduce the rewards policy. Policy M will only insure half of the deductible part A (i.e. $ 1,100 per year for 2010). This will not insure the excess of Part B (which is $ 155 a year for 2010). Policy M finally has no benefits for the “excess of Part B”. Policy N, just like Policy M, will not insure the Deducible Part B; however, it completely insures the deductible part A. Policy N uses cost sharing (e.g. co payment) to keep premium costs low. N policy payments are $50 in the emergency room and $ 20 in the doctor’s office.