Medigap and Secondary Health Insurance Policies

Part 3, Chapter 10: Medicare and Medicare Related Programs: Medigap and Secondary Health Insurance Policies Page 1

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Medigap and Secondary Health Insurance Policies

Medigap policies help Medicare beneficiaries pay for the Medicare deductible and co-insurance amounts and for certain other medical costs that are not covered by the traditional Medicare program. Given the limits of that traditional program, many people consider a Medigap policy to be essential.

Years ago, there was an enormous variety of Medicare-supplementary policies available, and confusion and possible duplication of coverage represented serious problems. Although some older Medicare-supplementary policies may still exist, federal regulations now provide for only ten standardized Medigap plans to be offered to Medicare beneficiaries. Each plan is labeled by a letter, A through J.

The process of standardizing Medigap plans has had a number of positive results. First, each type of Medigap plan is now identical, regardless of the company through which it is offered. Thus, although Plan A may be offered by four or five different insurers in a particular area, the plan provides the same benefits in each case. That makes it easier for Medicare beneficiaries to focus on such issues as coverage, premiums, and service when deciding which Medigap plan to purchase. Second, standardization makes it easier to avoid duplicate coverage, since the benefits offered by each Medigap plan are clearly outlined.

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