Medigap Insurance Bridges The Gap Between Medicare And Medical Care

According to the Harris Poll, 34 percent of people in the U.S. have not saved enough to maintain their standard of living when they retire. This poll found fewer people had retirement savings than a similar survey from 18 months earlier.

A year and a half ago, 30 percent reported having nothing saved for their retirement years. Among those ages 46 through 64, popularly known as the Baby Boomers, fully one-fourth lacked retirement savings. People surveyed who were over 64, fared slightly better off with only 22 percent reporting they lacked savings for their retirement years.

Medicare Supplemental Insurance Can Extend Dwindling Retirement Savings

According to the AARP, nine out of ten seniors hope they will be able to remain in their home for a long time to come, but maintaining their independence will largely depend on maintaining their health. That may require more doctor services, coverage for hospitalization, the possibility of more prescriptions and possibly temporary care in a skilled nursing facility to bridge the gap between hospital care and resuming normal activities when back at home.

Most people, not just seniors, underestimate how much health care in the U.S. now costs. Medical debt that forces seniors to sell their home is common these days and the escalating price tag of our health care system has been forcing more seniors into bankruptcy in recent years. Medicare Advantage Plans And Medigap Insurance Extend Medicare

When Medicare became law in 1965, it was never intended to cover all health care costs. It was supposed to protect seniors against catastrophic or major expenditures to stop bankruptcies. Covering all doctor and hospital bills requires a way to supplement Medicare coverage.

Basically, three forms of insurance are now available to expand Medicare coverage. Seniors can choose a Medicare Advantage plan as an alternative to Original Medicare Part A and B, if one is available where they live. Medicare Advantage plans have really low premiums and offer all of Medicare's Part A and B benefits, but Advantage plans are not universally available.

Medicare Advantage plans also typically restrict health care coverage to a specific network of doctors and hospitals. If a specialist whose services are not covered is required, that could hinder treatment. Most Advantage plans also require a referral to see a specialist, which could delay access to a specialist.

The second way to expand Medicare coverage is with Medicare Supplemental insurance. Commonly known as Medigap insurance, Medigap plans offer ten different combinations of benefits that pick up where Medicare stops.

For example, Medicare pays for 80 percent of a pre-determined amount for doctor care. Either the patient or her Medigap plan pay the remaining 20 percent every time a doctor's care is needed. If a doctor doesn't accept that amount of payment, either the patient or his Medicare Supplement insurance pays the excess above Medicare's payment.

The third way to extend Medicare is with a Part D Prescription Drug plan, but Medicare Advantage plans also typically include coverage for most, but not all, medicines. Since every Advantage plan sets independent policies, they do not all cover the same list of medications.

Medigap Insurance Is An Investment In A Happy Retirement

While prudent seniors might think is makes sense to wait and see how much health care they'll need, that could turn out to be a very costly decision. That's because the time to get the cheapest rates on Medigap Insurance is often during the first six months after you turn 65. During what's known as "open enrollment," seniors are guaranteed the lowest rates that are available to everyone no matter what health problems they may have.

Senior can apply for a Medigap Plan anytime, but insurance companies are free to decline to provide coverage outside of open enrollment if underwriting determines their health care costs will be high. Waiting too late to apply could result in seniors having to pay for everything not covered by Medicare, which could be hundreds or thousands of dollars per year.


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By Wiley Long - President, MedigapAdvisors.com - The nation's leading independent agency specializing in Medicare Supplemental Insurance. Our professional MediGap advisors look forward to the opportunity to help you get the best insurance for your Medicare needs.