Many people who are reaching the age of retirement are starting to worry about whether to sign up for a Medigap policy or not, to help them AARP supplement Medicare insurance. The answer is a categorical yes, of course, you should subscribe as soon as possible. Signing up for Medigap is important in many ways, but the main benefit is that you can protect yourself from a financial disaster in the event of a long illness or serious accident. For those who do not know the Medigap policy, I would like to explain in a concise manner what it is and what it does for the beneficiary.
A Medigap Registration Policy is a health insurance policy sold by private companies to supplement Medicare benefits and services. Although sold by private companies, it is strictly regulated by state and local governments to ensure that Medicare participants can be insured if they wish. It’s called Medigap because it’s tasked with detecting the “hole” between the cost of medical bills and the actual cost paid by Medicare. There are a number of Medicare policies that you can undertake, but whatever your choice, it does not insure all hospital, pharmaceutical, and medical expenses in the event of a medical emergency. If you have not participated in Medigap registration, you may be exposing yourself to financial upheaval.
As is common knowledge, medical expenses have been increasing for several years and will continue to do so. A serious medical problem related to a long stay in the hospital costs around $ 100,000 or more. Even if your health insurance plan insures 80% of these costs, you will still be personally liable for $ 20,000 or more in medical expenses. If you’re not a rich person, some of these episodes could completely wipe out your savings when you need them the most. One of the benefits of Medigap policies is that you can sign up for any policy of your choice at age 65 without any request for medical information. This option only lasts three months before your 65th birthday, three months after your 65th birthday. This means that you must participate in a Medigap registration program during this period. If you wait until this window of opportunity is closed, you could end up paying more for the same policy.
One thing to watch for is that a Medigap policy insures only one individual; your spouse is not included and he/she should have his own individual policy. After making sure your provider works with Medicare, your next question should be whether they will agree to the Medicare assignment. This is a term that describes the price per service which Medicare is willing to pay. For instance, if Medicare pays $ 1,200 for a specific operation, if the doctor agrees to the Medicare assignment, he will accept that amount as a payment for the transaction. Doctors who work with Medicare can claim 15% more than the approved amount (i.e. $ 1,200), which implies they will not accept the Medicare assignment, even if they work with Medicare.