Compare and Be Prepared
Many of the Medigap policies will offer basic benefits, while some also offer additional coverage. Overall, there are many factors to consider when comparing in order to be prepared and have the best coverage at the best price.
There are key coverage factors to consider when comparing Medigap policies and what they cover that falls within coverage gaps. Many companies are required to offer basic benefits for each plan, but some may offer additional benefits. Services that are generally covered may include additional hospital costs, coinsurance or copayments, first 3 pints of blood, hospice care, skilled nursing facilities, Part A and/or B deductible, excess Part B charges, foreign travel health care, and out of pocket costs. Some policies assist in covering some or all of the costs related to these services, while others don’t cover them at all.
Costs, like premiums, can vary from plan to plan, but different insurers may have different prices for the same plan. Three types of pricing include community-rated, issue age-related, or attained age-related. Community, or no age rated, means that the same premium is charged regardless of the participant’s age—so prices shouldn’t increase just because of age but other factors (like inflation) could cause an increase.
Issue age-rated, or entry age-rated, offers lower fixed costs depending on your age, and the younger you are the lower the cost for the life of the policy. Attained age rated is a type of pricing that is based on the age of the participant each year. In other words, it is lower when you start, but it will go up as you age.