When it comes to health insurance, deciding how much is enough is not easy. Your Original Medicare insurance could suffice if you are young, and don’t have many ailments. As you get older the chances of needing hospitalization increase and so do your medical bills. Medigap insurance may be just what you need, post-retirement, to ensure that your dues don’t soar into tens of thousands of dollars. Let’s take a closer look at Medigap insurance and how we can benefit from it.

What is Medigap insurance?

Medical insurance is divided into four parts. The most essential elements A and B, included in Original Medicare, cover your hospitalization costs and bills for tests and procedures while requiring you to pay a deductible. For more extended hospitalization and if multiple tests are needed, up to 20% of the costs have to be borne by the insured person. Retirees on a limited income tend to find these high costs a financial burden and here’s how they can benefit from Medigap insurance. These plans cover healthcare costs like copayments and deductibles that are not covered by Original Medicare. Still, an additional premium has to be paid for this service.

The freedom of choice

Medigap plans vary in the cost of monthly premiums and coverage types. While Medigap insurance is denoted by letters from A through N, all these plans are standardized. Regardless of the provider, each plan has the same benefits. When choosing a Medigap plan, you only have to compare the quality of the company selling you the plan and the costs. Keep in mind that the benefits could differ slightly in Massachusetts, Minnesota, and Wisconsin.

It’s not a standalone policy

Medigap insurance plans still require you to have an Original Medicare plan in force. A separate premium has to be paid to a private insurance company in addition to paying monthly premiums for parts A and B. 

Renewal guarantee

A benefit of Medigap policies is that even if you get sick, they are guaranteed to be renewed. That means that the insurance company won’t cancel your existing system if you have frequent failing health.

They are single-user plans

It is essential to know that Medigap plans don’t cover families. If you want to apply for a Medigap policy for your family, each person has to be enrolled separately (with additional premiums too).

What’s out of coverage? 

Keep in mind that these policies do not cover prescription drugs and long term care like glasses to correct vision, hearing aids and dental procedures. For comprehensive medical coverage, you should consider paying separate premiums for parts A and B, Medigap insurance as well as part D that covers the cost of prescription drugs.

How to apply

Online insurance comparison websites offer a wide range of private insurance companies that offer Medigap insurance. Signing up is easy, and depending on your budget, your plan could completely cover you ensuring that you don’t have to pay any medical bills at all.

Before signing up, seek the advice of an insurance agent who specializes in Medicare to get the plan that suits your needs best. When it comes to healthcare, the right decisions you make could keep you happy through your retirement.