A few things to know about Medigap plans
Medigap plans can be called a form of supplementary plan of Medicare. They were standardized back in 1992 and ever since they have remained more or less the same. A couple of new plans – M and N – were introduced back on June 1, 2010. These plans are offered by private insurers all around the United States of America (USA). The beauty of these two plans is that the premium rates here are lower than what is the standard in these cases. It is expected that in the days ahead these policies will become really popular especially in the market for Medicare supplement plans.
This is especially true after all the changes that were made to Medicare Advantage. In Plan M you get cost sharing facilities with the aim of making sure that you pay a lesser premium amount each month. This means that in lieu of these monthly premiums, which are a bit lower, beneficiaries of these plans would be able to split the deductible that is part of Medicare Part A. They would be able to do this on a 50-50 basis with their insurers. You need to however check if Plan M would cover the deductible that is part of Medicare Part B.
In these cases, after you have paid the Part B deductible there are no co-pays facilities that are applicable with respect to the doctor’s office. It is expected that this plan would help you save around 15 per cent on the money that you paid as part of the earlier plans. Cost sharing facilities are available in Plan N as well. However, this plan would not use the method of sharing deductibles. Instead it would use co-pays in order to bring down the premium expenses. In these cases the savings could amount to as much as 30 per cent of what you paid on the earlier plans.