Why do I need Medigap Insurance?
Medigap Insurance is a policy that is taken in conjunction with your Medicare. It covers all of the shortfalls that are not covered by your Medicare. Once you turn 65 you will automatically become eligible for Medicare. Within the first six months, after you turn 65, you will be able to procure Medigap Insurance at a lower rate. This is known as an open enrollment period. It is advisable to procure this as soon as you can as the price will increase after six months.
There are ten different Medigap options available in California. They are available from private insurance companies, and the premiums can vary. However, the policies will cover the same as the letter Medigap from a different company. You can choose between A, B, C, D, F, G, K, L, M and N. Plan F is the most popular policy as it provides the best value for money. It is closely followed by Plan N.
How to choose
Picking a Medigap will entail doing some research. Each letter policy has different benefits. As the premium increases so do the benefits. Depending on your need, there will be a policy that suits you better than the rest.
Types of plans
There are three types of plans available to you.
- Attainted-Age Rated Plans means that your premiums will increase as you age. It means that while you are relatively healthy you will pay less than you do when you will be more reliant on it.
- Issue-Age Rated means that your premiums do not increase with age. They will increase with inflation, but the basic premium will not be inflated.
- Community Rated Plans means that your age does not affect your premium. Other factors are taken into consideration when determining your premium.