In this article “2020 Medigap Plan G” you will learn why you should consider Plan G as an option to supplement your Original Medicare.
Medicare is a great program that everyone wants, but what most people don’t know is that Medicare does not cover everything and it has Deductibles and Co-payments.
- $1408 Hospital Deductible for Part A which you can pay up to six times per year
- $197 Part B Deductible
- 20% Part B Coinsurance.
These numbers might not look that big but they bankrupt people every year. Medicare does NOT have a maximum-out-of-pocket so that 20% Part B Coinsurance can add up quickly. If you get sick, the bills just keep on coming and no matter how much they are you have to pay 20% of that amount. Medicare is great but almost nobody just uses Part A & B alone.
60% of people keep Original Medicare, and they supplement the gaps with a Medicare Supplement Plan (also know as a Medigap Policy).
Benefits of keeping Original Medicare
The people that complain the least about anything relating to Medicare are people who have Original Medicare.
- If you have Original Medicare, you can go to any Doctor or Hospital anywhere in the United States as long as they accept Medicare (which 98% do).
- You DO NOT need to ask for referrals if you want to go to a specialist. You can just go!
- Ask your Doctor – They love Original Medicare
What is a Medigap Policy?
A Medigap policy is an insurance plan that you can buy from an private insurance company. Based on the plan you choose, it will cover some or all gaps inside of Medicare so that you don’t have to pay out of pocket. This is the easiest way to keep the freedoms offered by Original Medicare and the best way to budget your money.
This way you will know exactly how much you will spend on your Medical Insurance. Your monthly output will look like this.
- Part A = $0
- Part B = $144.60
- Medigap = $150 – $250
- Part D = $13 – $60 + copay’s & deductibles
Medigap Plan G?
Plan G will cover any gaps that you might have with Medicare. The only cost it does not cover is the $197 Part B Deductible
If you buy a Plan G, you no longer have to worry about the Part A deductible or the 20% Part B Coinsurance. This is the best way to be free from networks and referrals. You are free to do as you please wherever you are.
When Can You Buy Medigap Plan G?
The best time to enroll in a Medigap plan is your Medicare Supplement Open Enrollment Period. This period lasts six months and begins the first day of the month in which you are both 65 or older and enrolled in Medicare Part B.
For example, your birthday is May 31, 1955, so you turn 65 in 2020. You can enroll in Medicare Part B three months before your birthday, so you have Medicare Part B in Feb 2020. However in Feb 2020, you’re not 65 yet, so you’re not in the Medicare Supplement Open Enrollment Period.
The first day of the month that you’re both 65 and enrolled in Medicare Part B will be June 1, 2020. That’s when your Medicare Supplement Open Enrollment starts and it will last for six month’s until Dec 1, 2020.
The reason the Medicare Supplement Open Enrollment Period is important is that insurance companies that offer Medicare Supplement plans can’t use medical underwriting during this time.
Medical underwriting considers your health conditions and may reject you based on a health problem. During you Medicare Supplement open enrollment period, you can have any health problem and still be accepted into a Medicare Supplement plan.
If you apply for Medicare Supplement after your Medicare Supplement Open Enrollment Period is over, the plan may reject your or charge you more based on your health history.
If you’re outside your Medicare Supplement Open Enrollment Period, you may be able to enroll in a Medicare Supplement plan if you have “guaranteed issue” rights.
If you have guaranteed issue rights, a plan can’t deny you coverage, refuse to cover your pre-existing conditions, or make you wait for coverage. Some situations that could qualify you for guaranteed issue rights are:
- You had employer coverage and your going to lose it
- Your Medicare Supplement plan committed fraud or mislead you
- Your Medicare Supplement plan went bankrupt
- You dropped your Medicare Supplement plan to use your trial right to try a Medicare Advantage plan. Less than a year has passed and you want to switch back.
- Your Medicare Advantage plan stops providing care in your area
- You move out of your Medicare Advantage plan’s service area
Questions to ask when choosing a Medigap
When you are speaking to insurance representatives about Medigap policies, here are some questions to keep in mind:
- Am I enrolling while I am in my open enrollment period? If not, do I have a guaranteed issue right?
- What is the Medigap policy’s monthly premium?
- Is this premium based on my:
- Health status
- Marital status
- Or anything else?
- Are the premiums:
- No-age-rated (community-rated), meaning everyone in my area pays the same premium regardless of their age?
- Issue-age-rated, meaning the premium is based on how old I was when I bought the policy?
- Attained-age-rated, meaning the premium increases based on my age?
- Will the company refuse to sell me a Medigap based on my health status?
- Does the policy impose a pre-existing condition waiting period?
- How long is the waiting period before my coverage begins?
- Do I have prior to reduce my waiting period?
- If you do not have the right to buy a Medigap, ask the insurance representative how much extra you will be charged for purchasing one.
- If you are under 65, make sure the company you are considering sells to individuals under 65.
- Remember to keep track of who you spoke with, when you spoke with them, and the outcome of the call.
If you want a Free Quote for any Medigap Policy for your Medicare coverage or if you just have general questions, click the link below and schedule a time that works for you.