Medicare Supplemental Insurance
All insurance companies that offer Medicare supplement insurance (often
referred to as Medigap, for short) are required to offer identical policies. Most states limit
the number of different policies that can be sold, usually to no more than a dozen. These
plans are indicated by letters of the alphabets, starting at A for the most basic. Do not
confuse these letters with Medicare Part A (hospital coverage), Part B (medical coverage),
Part D (pharmacy coverage), and so on; they are not related to the plans used for
Medicare
billing. When shopping for Medicare supplemental health insurance, you should be able to easily
compare plans across the different insurance companies according to their letter coding. That
is, Medigap Plan E will have identical components and coverage regardless of what insurance
company you deal with. However, you want to comparison shop, because the prices will vary. You
should also compare the reputation of the different insurance companies for claims payment and
for overall service. State insurance departments, and/or state councils on aging, may offer
charted comparisons of the policies and rates offered within your state. The Federal
government also funds programs inside each state to answer your questions about Medicare
eligibility and coverage options. When you first qualify for Medicare, you have a six-month
period in which insurance companies cannot reject you based on your age or the state of your
health and cannot impose a waiting period for paying claims related to pre-existing
conditions. Similarly, once you have held a Medicare supplemental insurance policy for at least
six months, if you switch plans without any lapse in coverage the new plan generally cannot
say there is a waiting period for coverage related to pre-existing conditions. If when you
change to another Medicare supplement plan you not only change companies but also
plan levels, however, it is possible that pre-existing condition exclusions may apply to the
new benefits you have added. By law, you must be given 30 days to review
any new Medicare supplement insurance policy. This gives you time to read and understand the benefits,
exclusions and requirements. If you change your mind and decide not to take the policy, the
company is required by law to return any premiums you paid in advance. You need to check with
your insurance company to see if you are covered during this waiting period, or if covered, if
any use of the policy affects your ability to change your mind during the waiting period.
You may also wish to compare Medicare supplement plans with other insurance
policies available to you. If you have private health insurance through a pension plan or a former
employer, that might serve the same purpose as any Medigap coverage could provide, and may
cost you less.
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