Different Types of Medigap Plans
There are 12 distinct plans under the standardized Medigap Plans initially labeled A through L. The government does not provide Medigap Plans but you can buy them from privately owned companies. Private businesses usually offer Medigap Plans and the buyer will be able to enjoy different combinations of benefits from them.
Two new plans have been introduced, namely , Plans M and N. Insurers no longer offer Plans E, H and J, thus replaced by Plans M and N. If you currently have these policies, then it will be renewed automatically without any changes in your coverage.
There is reduced premiums in the new Plans M and N but it requires extra cost-sharing. So. You might want to consider these new plans.
There are similarities between Plans M and N and the popular Medigap Plan F. The deductible require for Medicare Plan A will only be half-covered by plan M. The Part B deductibles not covered by either M and N plans.
Also, the new Plan M does not cover any of Part B’s excessive charges. The excessive charges help cover extra costs that your physician charges over what Medicare will accept.
Part A deductible is completely covered by Plan N. There is a co-payment for appointments at the doctor’s office. You also have co-payment for a hospital emergency room visit. In this case, private insurers sell Plan N over Plan M. Plan N typically costs less than plan F.
If is possible to change plans but just make sure to compare the premium savings to the possible out-of-pocket co-payments and deductibles of each plan. In Plan N, you are required to pay Part B’s co-payment, even if It costs less than plan F.
IT is important to know the total amount for all your co-payments and to calculate the maximum number of times you may visit the emergency room and your physician’s office. Determine if you will be spending less with plan N. Plan M and N do not cover Part B’s excessive charges which only Plan F covers. This is important if your physicians tend to charge more than what Medicare will pay for.
You can qualify for any of the plans if this is the first time you will be signing up for Part B, whatever the state of your health is. However, if you don’t sign up with the open-enrollment period, your health condition can be a factor for your rejection to any plan. For those who previously had Medigap plans E, H, I and J, you can still buy plans M and N from some insurers whatever your health condition is.
Ultimately, the choice of a Medigap plan solely belongs to you.