Medigap Plan and Part D Drug Policies, Part 1

Medigap Plan and Part D Drug Policies, Part 1

If you are about to turn 65, you have no doubt already enrolled in Medicare, or at least read the information on the application. The first question you should ask yourself is if you have prescription drug insurance and a Medicare Part D supplement policy or if you must enroll in a Medicare Advantage policy.

Let us assume that you have already signed up for Medicare. So the next question would be, what next? Medicare has been easy, especially because there is only one place to get it, i.e. the federal government. However, after treatment with Medicare, you have only completed one third of the journey. Medicare insures 80 percent of your medical and hospital expenses, but there are 2 other health insurance policies that you need.

Insurance policies for the Medicare supplement:

The first here is Medicare’s supplemental insurance, and it does according to what its name stipulates. It completes your Medicare policy. This means, in a nutshell, that your Medicare supplement insurance pays the difference of what Medicare pays, which in most cases is 80% and pays the full amount of hospital and doctoral expenses.

So far, everything is quite easy to understand, isn’t it? Medicare pays 80 percent and supplemental insurance pays the remaining 20 percent, as long as you choose the right policy. This is where the large private insurance firms are needed and they make it difficult for the average person to understand. Each year, they have several 2019 Medicare supplement plans to choose from, each of which assigns them a letter of the alphabet so they can be differentiated. , In 2010 for example, Medicare integration policies were made available, from A to N, with the exception of plans E, H, I and J that are no longer available.

Medicare Part D drug policies:

Large private insurance companies provide several Part D policies to choose from. The difference here from policy to policy is the deductible amount, which can vary from zero deduction to $300. The deductible, of course, is the total amount you need to spend with prescription drugs before you begin your insurance. When your deductible decreases, your monthly premium will increase. This implies that with zero deductible, you will be paying the greatest monthly premium.

There is also something called gap insurance that you should understand, because after insurance begins, from zero or $ 310, when the total costs of prescription drugs reach $ 2,700 per calendar year, large insurance companies will stop pay The total cost of medicines reaches $ 4350. In addition, these figures are based on the 2010 policies and, therefore, can be modified. My insurance agent pointed out that this will be very clear when considering the gap that a period without insurance should insure, as it is sometimes called.

What the large private insurance firms don’t want you to know.

It is unlikely that large private insurance firms will inform you that the government expects each insurance firm to provide exactly the same Medicare supplement and Part D policies in each specific state.  This means, in a nutshell, that Medicare supplemental policies from A to N, for example in Texas, must have exactly the same characteristics as any insurance company.