Medigap is a popular supplemental insurance among Medicare beneficiaries that allows them to plan their health care costs. Recently, there has been a heated debate in the congress about implementing some changes to Medicare and Medicare Supplement Plans. If approved, Medicare beneficiaries might have to pay more out-of-pocket for health care.

Medicare is the government health insurance program for those 65 or older as well as younger disabled people. Medicare has never covered all of their health care needs, though. Medicare beneficiaries have out-of-pocket costs for both doctor and hospital treatments. To reduce these out-of-pocket costs, many Medicare beneficiaries add a Medigap Plan. Medigap or Medicare Supplement Insurance doesn’t replace Medicare. It picks up some of the medical bills that Medicare doesn’t cover.

Some experts on health care policy say that such coverage generates an increased demand for health care by reducing the amount Medicare beneficiaries have to cover for treatment. That increase in the demand for Medicare services can also be abused when providers bill for additional and unnecessary medical care. It’s normal for beneficiaries to want as much health care as they can afford with the expanded coverage of Medigap Plans, but the government hasn’t funded Medicare to keep up with the demand.

One response has been to propose that Medicare Supplement Insurance plans be blocked from filling all of the gaps in Medicare. To drive up out-of-pocket costs for beneficiaries, adding $530 per year to existing out-of-pocket costs is also under consideration. But, are beneficiaries the only ones on a spending spree?

Hospitals have been known to bill for services after a Medicare beneficiary’s death. Fraudulent billing for services can also take a high toll on government coffers. Is it reasonable to expect Medicare beneficiaries to blow the whistle when doctors recommend tests that increase the burden of governmental funding?

A recent study by the Kaiser Family Foundation showed that increasing out-of-pocket expenses for Medicare Supplement Insurance could save Medicare $1.5 billion to $4.6 billion per year. It has also been suggested that higher out-of-pocket costs would reduce the demand for health care and in turn, lower Medigap premiums because of reduced expenses for insurance companies. Is it really necessary to take health care away from seniors and people with disabilities?

There is extensive debate over what the government can’t afford, but some of the reasons for the shortfall may be surprising. According to David Cay Johnston who reported on the tax system for the New York Times, the trend for U.S. companies to drastically reduce their tax bills by incorporating in Bermuda has been growing. Johnston, who won a Pulitzer Prize for his coverage of our tax system, points out that our laws don’t prevent this. He reported on a New Jersey industrial manufacturer that incorporated in Bermuda for $27,000 and could avoid at least $40 million in U.S. corporate income taxes. The company didn’t even need to maintain a Bermuda office. A mail drop there was sufficient to save them $40 million or more.

How Can Medicare Beneficiaries Protect Their Health If Access To Medical Care Becomes More Expensive?

While our policymakers are still debating over what to do with Medigap Plans, you can take measures to reduce your out-of-pocket costs for health care.

The more you work to improve your health, the less you’ll have to spend on medical intervention regardless of Medicare politics. Exercise plays a major role in keeping the body fit and improving a lot of health problems. It also helps to keep your brain functioning at peak levels.

How you fuel your body is even more important than staying active. For starters, fruits and vegetables fight cancer, high blood pressure, and help you to maintain a healthy weight. Avoiding preventable disease does more than cut your cost for health care. It also makes it easier to navigate between Medicare Supplement Insurance Plans. Outside of open enrollment, it’s difficult or impossible to clear medical underwriting standards to buy a supplement if your medical history is problematic.

No matter how you look at it, investing in ways to protect your health is a money saver. Perhaps that’s why some Medicare Supplement Plans offer discounts on health club memberships and online access to tips to stay healthy.

By Wiley Long – President, MedigapAdvisors.com – The nation’s leading independent agency specializing in Medigap Insurance. Contact our experienced MediGap advisors for help choosing the best Medigap plan for your needs.

Many people who are turning 65 have limited experience searching for health care coverage. Most have simply accepted a group plan at work, but that does little to prepare them for the onslaught of options that come with Medicare eligibility. Studies have found that when faced with too many options, seniors have failed to find the plan that can save them the most on health care expenses. To avoid that, here are a few tips to help keep from being ensnared in a maze of Medicare options.

Medicare Supplement Insurance Adds To Medicare Benefits

Medigap plans were created to fill in the gaps of the Original Medicare. Ten different Medigap policies let you pick and choose which Medicare out-of-pocket costs you want help with, such as co-payments, co-insurance and the Part A and Part B deductibles. When you have Medicare Part B, it pays 80 percent of a pre-approved amount for doctor services, supplies and procedures. Certain of the Medicare Supplement Insurance plans take care of the 20 percent that you’re responsible for and some Medigap options can do even more.

You’re probably aware that not all doctors accept Medicare’s payment rates. You can use Medicare Supplement Plans to take care of what’s known in the industry as excess charges. That’s when a doctor charges you $1,000 for something and Medicare will only pay for 80 percent of $800 on that particular bill. The most comprehensive Medigap policies, like Medigap Plan F, can cover both the 20 percent and the excess so you have no out-of-pocket costs.

Regardless of which Medigap plan you prefer, they are all standardized to ensure the same benefits are available through every plan with the same letter designation. That key because it allows you to buy a Medigap Plan G, for example, from which ever insurer offers it at the lowest rate. In addition to insurance companies charging different rates for the same plan, the plans themselves are divided into more and less comprehensive (expensive) options.

There are 10 options (Plans A-N) and, as you’d expect, Medigap Plan A is just the beginning. It offers limited basic benefits, and Plans F and G provide the most comprehensive coverage. With any of these Medicare Supplemental Insurance plans, you can seek health care from any physician that accepts Medicare.

Medicare Advantage Plans Replace Medicare With Coverage From Private Insurers

Medicare Advantage Plans are sometimes called MA Plans or even Medicare Part C. Unlike Medigap Insurance, MA Plans replace all of your Original Medicare coverage with similar benefits through private insurance companies. Certain Medicare Advantage Plans augment Original Medicare with additional coverage to get glasses or hearing aids. These plans also provide coverage for prescription drugs, but in a limited form. You can’t assume that your specific medicine is covered because each plan has different rules about drug coverage.

A downside to Medicare Advantage Plans is that they have limited provider networks. If you need a specialist that your plan doesn’t cover, you won’t have Original Medicare to fall back on for even partial benefits. However, there’s also an upside. In some parts of the country, Medicare Advantage Plans are surprisingly inexpensive.

The “best” Medicare Supplement plan is the one that has coverage for the health care you’re likely to need while still charging a low rate. Before you try to compare your options, take a look at what kinds of medical care you’ve needed the past couple of years. Has your health changed recently or can you expect to require about the same level of care? Once you are clear on what you need, it’s time to start investigating your choices.

One thing to keep in mind is that your best chance to get the lowest rates on Medigap Plans is during the first six months after you turn 65, as long as you’re enrolled in Medicare Part B. At that time, insurance companies won’t question your medical records so they can’t up your rate in response to any prior health problems.

By Wiley Long – President, MedigapAdvisors.com - The nation’s leading independent agency specializing in Medicare Supplemental Insurance plans.  Run an instant Medicare Supplement Quote to compare plans and save money.