Medigap policies (Medicare Supplements) are basically insurance plans that will help an individual pay for the out-of-pocket health care costs that aren’t covered by Original Medicare Plans. These expenses, otherwise known as gaps, are coinsurance charges, copayments, and deductibles that can quickly drain one’s nest egg.

As such, learning more about these supplements (and eventually purchasing a policy) is a surefire way to prepare for the twilight years. Here are a few factors on how these policies are beneficial (and some steps on how to secure a plan).

Addressing the Gaps

The latest FreeMedSuppQuotes post, The Best Medicare Supplement Plans: Where are They?, highlighted several points on how one can secure a Medicare Supplement safety net. As a snapshot of what was featured, we’d like to further illustrating how expensive the gaps can help create the drive for you to purchase coverage. Basing this thought from results revealed by a recent Commonwealth Fund report, approximately 15 million Medicare beneficiaries faced of being in the troublesome financial pit of having spent more than 20% of their household income on insurance premiums and out-of-pocket health care costs. Considering as well that these gaps, at an average, may cost up to $3,024 per year, is an expensive amount that can definitely add more weight to the already heavy burden of managing finances during the twilight years.

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Additionally, the rising costs of health care in the country further serves as a factor that one should consider coverage. The Centers for Medicare and Medicaid Services’ National Health Expenditure Data report projected that health care costs in the country would grow at 5.6% per year (2016 to 2025). Considering as well that most boomers are already having a hard time both earning and saving money, the future may indeed seem bleak for some.

Offering a Myriad of Solutions

Knowing that there is an urgent need to address retirement financial costs, especially for necessary and expected health care expenses, should not deter one from seeking out solutions. Instead, look at the glass half full and realize that there is hope (there always is!).

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And Medicare Supplements can not only cover the financial gaps mentioned above – these plans can also fill in the hole of having a pessimistic view of the future. Which is why, with ten standardized plans to select from, applicants are assured that there is a policy available to fit their budget and address their needs for retirement.

Granted that every plan offers these basic benefits…

· Coverage for Medicare Part A (coinsurance charges)

· Coverage for Medicare Part A (copayments, mainly for hospice care costs)

· Coverage for Medicare Part B (coinsurance charges or copayments)

· Coverage for the first three pints of blood in a calendar year

…an applicant is still strongly advised to take the time to learn how each plan can help make the burden of retirement costs lighter. As such, consulting with insurance agents will help applicants learn more of the various options available to them (and meeting with several agents will also allow one to compare Medicare Supplement costs to determine the best way to make use of their savings for their future!).

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Medigap Shopping Hacks You Need to Know

Knowledge will always be the key in choosing a Medicare Supplemental Insurance Plan (which is what we pointed out in the two points above). Now, we’d like to share two major shopping hacks when purchasing a Medigap plan:

Request for a Medigap Quote

Searching for Medicare Supplement Quotes will give you a good idea of how much you’d need to set aside for the premiums and on how to plan for your retirement in general. Additionally, requesting for one will also help you connect to an agent who may potentially help you out with your retirement financial problems. Don’t worry when searching for quotes – a free Medigap quote is common online, and as such, can help you compare Medigap costs and prices among different insurance companies.

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Enroll During the Open Enrollment Period

Do you know about the Medicare Supplement Open Enrollment Period (OEP)? This period, which begins the month you turn 65 and lasts for six months, allows you these benefits:

· No medical underwriting procedure will be done. This means that applicants with health problems cannot be denied a Medicare Supplement Plan

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· Private insurance companies cannot refuse to sell any of the Medigap policies it offers to an applicant during this period

· Applicants cannot be charged higher premiums during the OEP

· The start date of a Medicare Supplement coverage cannot be delayed

As such, enrolling during the OEP is a great way to secure yourself Medigap coverage.

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Do you have any questions regarding Medigap policies? Let us know below!