MEDICARE SUPPLEMENT ("MEDIGAP") INSURANCE
Medicare has two parts: Part A (Hospital Insurance)
and Part B (Medical Insurance). However, Medicare does
not pay for all hospital and medical bills you incur. There
are strict limits regarding what is and isn't covered.
Medicare Part A covers some costs related to hospital
stays and is available for people who are 65 years old and
over. Medicare Part B covers some costs related to
doctor visits, tests, supplies, and outpatient services. Both
Medicare Parts A and B cover only those services that are
considered "medically necessary" and only those charges that
are considered "reasonable."
Given this information, it should come as no surprise that
there are often major gaps between
the hospital and medical bills you incur and what Medicare
actually pays for.
To cover these gaps, you can purchase Medicare supplement
insurance -- also known as "Medigap" insurance. However, Medicare
supplement insurance plans vary tremendously. Some may be
benefit-rich, while others may provide only very basic benefits.
Ultimately only you can decide if a plan fits your lifestyle
and budget, but we strongly recommend that you consult a professional
before making any decision.
In addition, you should be aware of these pitfalls:
Medicare supplement insurance does not fill all gaps, so
still be prepared for some out-of-pocket expenses.
You must be enrolled in Medicare Parts A and B to be eligible
for Medicare supplement insurance.
It is illegal for someone to sell you a duplicate policy
-- do not purchase a duplicate!
If you will be replacing an existing policy, be very careful
and do so only with full awareness and complete understanding.
Do not purchase Medicare supplement insurance if you are
eligible for Medicaid. Contact your state welfare department
instead.
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