Learning About Medicare Plans and Medigap Options
By the time people reach the age of eligibility for Medicare, they have already made decisions about when to start accepting their Social Security retirement benefits. If considering all the pertinent points in that decision seemed like a conundrum, Medicare may appear even more complicated. Reading over this site will help senior citizens learn more about Medicare and one particular plan: Medicare Supplement Plan G.
Medicare Parts A and B
A myriad of options is available from different insurance companies aside from the standard Medicare Part A, which is free for most individuals. Part A covers expenses for hospitalization and a certain amount of skilled nursing care in a facility or at home. Part B is more like a standard health insurance policy and requires a premium to be paid. In addition to the many other options, plans known as Medigap can be purchased to cover coinsurance, deductibles and certain expenses that are not paid by Parts A and B.
Seniors must decide which of the many optional plans they want. In an ideal world, they’d choose plans to cover every possible circumstance, but all the plans cost money. Medigap Plan F is the most comprehensive, but it costs more than Medigap Plan G. Medigap Plan F covers the health insurance Plan B deductible but Medigap Plan G does not. If someone can afford to pay that deductible, then Plan G may be the best choice.
To complicate things further, another Medigap option is offered: Plan N. This plan does not cover the excess charges that are not paid by Plan B. That is the only difference between Plans G and N. This option costs less than Plan G because of the somewhat reduced benefits package.
The reason so many seniors choose one of these plans instead of Plan F is because of affordability. The deductible for Part B is low, affordable for most senior citizens. The higher premium for Plan F compared with plans G or N can actually be larger over a year than simply paying the deductible. In addition, it is rare for any medical expenses not to be paid by Plan B.