Everyone needs to pay something for their health insurance, but the amount is different depending on the type of plan that a person has.  Once a person reaches retirement age, they are eligible for Medicare, which may or may not have a charge for premiums but does require everyone to pay a deductible and coinsurance each year.  Medigap supplement insurance plans are a great way to save on the deductible and coinsurance of Medicare, but there is often a premium for them.

If you are unsure of the difference between premiums, deductibles, and coinsurance when it comes to Medicare and Medigap plans, it is fairly easy to figure out.  A premium is the money that you pay for your medical policy.  You may not have to pay a monthly premium for your Medicare insurance, but every Medigap supplement insurance plan has a premium.  The amount of that premium is determined by the plan that you choose.

A deductible is the amount of money that you will need to pay before your insurance will pay out anything.  Your deductible can be quite high with Medicare, but your Medigap plan will allow you to pay less money, as that plan normally covers most of the amount that you would owe.

Once you have fulfilled your deductible, you are almost always required to pay a coinsurance for any other services that you receive.  The coinsurance is normally a percentage of what Medicare or Medigap pays, but it could also be a specified dollar amount.  While a coinsurance is guaranteed with a Medicare plan, you may not need to pay the coinsurance in full if you have a Medigap supplement insurance plan that will cover some of it.

You may not think that it is worthwhile to purchase a Medigap supplement insurance plan when you become eligible for Medicare, because it would be one more premium that you would need to pay every month.  However, you may find that the amount of the premium is negligible compared to the amount of money that you are saving in deductible and coinsurance payments.

The savings might not be significant in the beginning when you are healthy, but one long-term illness or multiple short-term illnesses will allow you to see the savings more clearly.  Don’t lose out on saving money in the future from not understanding the importance of Medigap insurance, because your health could depend on it.

Learn more about Medigap plans and rates at http://emedigap-plans.com.  Medigap Insurance brokers will help you compare Medigap Insurance rates and plans.  To talk to an expert in Medigap coverage call toll free 888-452-7949!

Leave a Reply