In a recent survey, it was found that only 30% of a total citizen of the United States is insured under Medicare Supplement plans. The number is very much alarming as it clearly displays a picture of the financial crisis among old people. The Original Medicare plan fails to provide complete coverage to all the expenses from hospital bills to medical bills.
As a result, a retired person needs to shell that extra amount from the personal savings. If a person spends more than 140 days in a hospital bed, his existing Medicare plan gets completely exhausted. This is very common among senior citizens who suffer from terminal illness. The work of Medicare Supplement plans is to supplement the Original Medicare plan. The Medigap is quite different from the Medicare Advantage plan. The Advantage plan helps in improving the Original Medicare plan.
How does the plan work?
The work of Medicare Supplement plans is to supplement the original plan. The Medigap are generally sold by private owned insurance companies. There are certain eligibility criteria a person must meet before purchasing the plan. The person who wishes to purchase must be of 65 or more years of age. In some states of US, people less than 65 can also purchase the plan. Second most important criteria are the person must have a valid original Medicare plan in place. He must not have a pre-existing advantage plan as it may make him ineligible for supplement plan.
The privately owned insurance companies have different policies when it comes to calculating the cost or premium amount for the policy. There are many companies who calculate the premium irrespective of age or gender. There is another policy where the company takes into consideration the age of the insurer when he is buying it. There is another policy followed bt few companies where the premium amount is evaluated every year as the insurer ages. The premium amount for Medicare Supplement plans may become high if the person has some pre-existing medical conditions.
A person who is insured under Medigap get several financial benefits. There are few plans which pay almost 80% of the total cost incurred if the insurer is treated in foreign soil. The plan covers both the hospital and medical bills. It does not cover the expense of purchasing Type D prescribed drugs. It may seem to be a financial burden initially but benefits from Medigap outnumbers the monetary factor.