Why Pay For A Medigap Plan?

If you are in the market for Medicare or Medigap plans, you may wonder why someone would need the latter. At first glance, you may think that Medigap is just an expensive cherry that goes on top of original Medicare, and that you can save money without it. However, this is not the case. Here are a few reasons you may want to spend a bit extra each month to invest in a Medigap plan.

Expensive Copayments

A copayment here and there will most likely not break the bank. However, if you are visiting multiple doctors a month, filling prescriptions, getting therapy on the side, and needing an operation, your copayments could quickly exceed any money you have set aside for them. Original Medicare covers 80% of the cost of your medical needs. While this may sound like enough, expensive operations could make the remaining 20% heavy to carry. The purpose of a Medigap plan is to make sure that the remaining 20% is also covered. 

Frequent Hospital Stays

With Medicare Part A, hospital stays are covered. That is, all but the Part A deductible. In the year 2020 the Part A hospital deductible is $1,408. That is not an astronomical amount. However, if you go into the hospital, are discharged, return home for 60 days, and then must be readmitted, you will need to repay the deductible again, because it is not a once a year kind of deductible. You must pay for each benefit period. Fortunately, many Medigap plans will cover this cost. 

Foreign Travel

If you are someone who enjoys traveling internationally, you may wonder how much Medicare would cover if you had a health emergency abroad. The answer is zero. However, if you have a Medigap plan that covers foreign travel, you could have any emergencies covered at about 80%. 

In conclusion, choosing to purchase a Medigap policy could save you a lot of money in the long wrong, but it really depends on how frequently you use medical services. These plans work to fill the gap of coverage that original Medicare can leave. Think about what your current and future needs might be, and then make your decision. Also, keep in mind that it can sometimes be difficult to get onto a Medigap plan once you have chosen to go a different route. Since Medigap plans are offered by individual insurance companies they are within their rights to give you waiting periods or penalties.

For more information about what Medigap plans can do for you, talk to medical insurance companies in your area.