Introduction

Medicare Supplement plans have been becoming increasingly popular in the United States. The sales for these plans have steadily increased over the years. The current article provides some of the major pros and cons of purchasing a Medigap plans. Some of the major pros of Medicare Supplement plans are as follows:

 

Standardized Plans

The Medicare Supplement plans are standardized which means it provide the same benefits to the customers irrespective of the carrier it has been purchased from. The customers get the same benefits in any location-nationwide coverage.

 

Guaranteed Issue Rights

The applicants get guaranteed-issue rights when they apply for the Medigap plans during the Open Enrollment Period (OEP). The OEP lasts for 6-months, starting from the first day of the month in which the applicant becomes 65 years of age or older and are enrolled in Medicare Part B. The insurance company cannot reject to sell the Medigap plan to applicant as long as they are paying the premium, even if they have pre-existing health conditions, provided the application has been made in the OEP.

 

Covers Out-of-Pocket Expenses

The Medicare Supplement plans cover the unmet expenses of the Original Medicare. They meet the expenses towards copayments, coinsurance, and deductible. This means the customers do not have to pay out-of-pocket.

 

No Restriction on Choosing Healthcare Service Providers

The Medigap plans do not put any restrictions on network healthcare service providers. This means that the customers can choose the doctor and the hospital they want to avail the healthcare services from.

 

Guaranteed Renewal

Once a customer purchases the Medigap plan, then he/she is guaranteed the renewal as long as they continue to pay their premiums.

 

Cons of Medicare Supplement Plans

Some of the major cons of a Medicare Supplement plan are as follows:


Not Guaranteed Policies

The Medicare Supplement plans are not guaranteed issue policies. If the applicant applies after the OEP or does not meet the guaranteed-issue rights, then they may not be sold the policy. The insurance companies can refuse to sell the policy to them on grounds of medical underwriting and pre-existing health conditions.

 

No Coverage for Prescription Drugs

The Medicare Supplement plans do not provide any coverage for prescription drugs. To avail the benefits of prescription drug coverage, the customers may have to look for other alternative privately sold Medicare health plans.

 

Costly

The Medigap plans are costly than the other privately sold Medicare health plans. The average monthly premium ranges from $150-$200, depending on the plan purchased.

 

Increase in Premium

The monthly premiums of the Medigap plans are likely to increase each year, which can cause difficulties to the customers.