For example, Medicare Part A covers up to 60 days of hospitalization after you pay your deductible. What if you need more than 60 days?
Or take Medicare Part B, which covers 80% of approved services after you pay your deductible. What if you have $250,000 in Medicare Part B-approved expenses after your deductible? Can you handle a bill in the amount of $50,000 – or more, if less than 80% ends up being covered?
Medigap policies can chip away at those expenses Medicare doesn’t cover. How much they will reduce them depends on which Medigap plan you choose.
There are 10 different types of Medigap plans available across most of the country, and they offer a variety of different benefits. As with most types of health insurance, you can opt for plans with larger premiums if you want more coverage, or you can economize on premiums for less comprehensive coverage.
Returning to the example above, Medigap Plan K would pay 50% of the $50,000 remaining after Medicare. On the other hand, Medigap Plan F would cover the entire $50,000.
Medigap policies generally offer more flexibility than Medicare Advantage, which is designed to incorporate Medicare benefits with additional coverage. If you are leaving Medicare Advantage, an insurer can sell you a policy with coverage starting the day after your Advantage policy ends.
One final benefit of Medigap plans is that insurers cannot cancel them if you get sick. Continue to pay your premiums, and you can renew your policy for life.