You might have heard the term “Medigap” and wondered. The short answer is that it’s a type of health plan you can purchase with your Medicare benefits. The longer answer explains that private insurance companies sell Medigap policies, and they will help cover your health care costs if you’re enrolled in Medicare Part A & Part B.
It is also called Medicare Supplement Insurance. These policies are designed to fill in the gaps you might have under Medicare. Medigap plans vary depending on your health plan and where you live, so choose one with the right coverage.
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Medigap Basic Plan Premiums in 2022
Your body changes as you age, and it becomes more likely that you will develop a chronic illness. With this increase in chronic illness comes additional costs for in-home care, medical devices, and medications. However, if you have Medicare coverage, you can get some assistance with these expenses. Medigap is a supplemental insurance product that helps pay for out-of-pocket expenses associated with hospitalization, emergency care, and prescription drugs not covered by Original Medicare (Medicare Part A and Medicare Part B).
Medigap plans typically require a monthly premium payment in addition to the premium payments you make for your Medicare coverage. The cost of Medigap policies varies by company, but all Medigap plans are standardized. This means that each plan has the same benefits regardless of where you buy it. Because of this standardization, the only difference between Medigap plans is price.
What Are the Changes to Medigap Costs for 2022?
Medigap (Medicare Supplement Plans) Basic Plan Premiums in 2022
In 2022, the basic plan premiums will go up slightly. This is an excellent option for those seniors who are on a fixed income and are looking for the most affordable Medigap plan. There’s no network to deal with, and you can use any doctor that accepts Medicare. You can find up to date Medicare plans best for you at MedicareConsumer.com.
How Can You Save Money on Your Medigap Plan?
Most people are looking for ways to save money on their Medigap plan. However, the best way to minimize your costs is simple: shop around. Even though the benefits of each Medigap plan are standardized, the rates you’ll pay will vary by the insurance provider. That’s because providers can set their own prices and offer different ways to pay them.
There’s no question that medical care costs can be expensive, and Medicare supplemental insurance plans are no exception. But in many cases, enrolling in a Medigap plan will keep you from paying for more out-of-pocket expenses than you need to, saving you money in the long run.
The most common types of Medicare rate structures include:
- Annual renewable term.
- Community-rated (no age-based premium increases).
- Issue-age (your premium is based on how old you were when you enrolled).
Some providers also offer household discounts for couples who enroll in the same plan. There may also be other discounts that can help you keep your premiums low, so it’s always worth asking!
