Millions of seniors in the United States rely on Medicare for their health insurance needs. However, Medicare by itself only pays 80% of any medical bills. To have total coverage, people need what is called a Medigap policy. This policy pays for whatever Medicare Parts A and B do not, letting people have peace of mind by knowing their medical bills will be covered.
There are eleven different Medigap plans offered to consumers, but by far the most popular choice amongst people is Medicare supplement Plan F. Why Plan F? In addition to covering what Medicare doesn’t such as copayments, deductibles and coinsurance, Plan F also offers basic Medigap coverage like Part A coinsurance and paying all hospital costs after Medicare hospital coverage is exhausted. Also covered is Part A hospice care and coinsurance or copayments and Part B coinsurance or copayments. Preventative Care Part B coinsurance is also covered.
The main items Medigap policies don’t cover are vision or dental care, long-term nursing home care, private-duty nursing, hearing aids and eyeglasses. These would have to be paid for privately or have other insurance plans pay for them. However, Plan F does cover skilled nursing coinsurance payments and health emergencies that arise if traveling in a foreign country. For retirees who love traveling, this is a great feature.
Plan F also covers any excess charges not covered under Medicare Part B. An excess charge is when a doctor doesn’t accept assignment and charges more than Medicare will pay for the service. As entitlement programs such as Medicare become hot political issues regarding their funding, more doctors are taking a second look at accepting Medicare patients or how much they can charge for their services. Medigap policies such as Plan F can help guard seniors against higher health care costs and the risk of not being able to find affordable care. For those seeking high-deductible options, Plan F does offer this. The drawback is the patient must pay the first $2,070 of Medicare-covered costs before the Medigap policy kicks in. When in need of Medigap coverage, Plan F is the best option.