Why is it Important for Seniors to Have a Medicare Supplement?
Medigap policies or Medicare Supplements are considered the “Gold Standard” of coverage by most doctors, hospitals, and Medicare recipients. The following are only three of the reasons for the popularity of this type of plan.
First, once Original Medicare pays, the Medicare Supplements pay most or even all of the remaining Medicare-approved charges. For example, a Plan F (the most popular plan by far) will pay the Part A and Part B deductible as well as the doctor and hospital coinsurance amounts. Typically the insured has no check to write for covered medical expenses once Medicare and the Plan F Medicare Supplements have paid.
Second, Medicare Supplements are renewable for life as long as the premiums are paid. There are no lifetime maximums, and no policyholder can be cancelled due to high-dollar or frequent claims.
Third, the benefits of Medicare Supplements are “locked in” and will not change for the life of the policy. This differs drastically from Medicare Advantage plans which can and often do rewrite their benefits and increase their premiums every January 1.
For the first time since 1990, the Medicare Supplements to be offered for new sales on or after June 1, 2010 were adjusted by the Centers for Medicare & Medicaid Services (CMS) with plans E, H, I, and J eliminated and plans M and N added.