1. 981 POINTS
    Jeffrey VanCleve
    Marketing Director, JLS Marketing Concepts LTD, Canton, OH
    The purpose is to provide financial coverage for the "gaps" in original Medicare Parts A and B. Original Medicare is very good health insurance, however does not pay for all beneficiary health care costs. For example, Medicare Part A (Hospitalization) requires beneficiary payment of a $1,260 deductible in 2015. The Part B (Doctors costs) has a $147 annual deductible, plus requires the beneficiary to pay 20% coinsurance of the Medicare approved amount for the bills. There are other exposure items as well, but it is easy to see that a given health situation could potentially lead to some significant bills for the beneficiary even though they have insurance. Medigap Insurance is designed to pay these bills in exchange for the payment of a monthly premium, thus trading an uncertain potential financial exposure for a certain monthly payment. It's a good idea to find a licensed insurance agent who is experienced in Medicare plans to assess your needs and objectives and offer optimal solutions to limit your financial exposure.
    Answered on November 26, 2014
  2. 1866 POINTS
    Paul RothPRO
    Senior Commercial and Annuity Specialist, Freedom Brokers, Marion, Carbondale, Harrisburg IL
    If you are eligible, and have enrolled in Medicare part B, the good news is that Medicare covers 80 percent of the cost of Medicare approved procedures. (Cosmetic surgery and elective surgery are not covered) The bad news is that there is still 20 percent of the cost that may be borne by the Medicare client. If you have a medical "blowout", chances are that the costs will run into the tens or even hundreds of thousands of dollars. With a $100,00.00 medical claim, the client would be responsible for $20,000.00 of that claim. In cash. Ouch! One of the leading causes of bankruptcy in America is medical bankruptcy.
    So, like any problem, business looks for a solution. One of those solutions is to close the "gap" in medicare with Medigap insurance coverage, sometimes called a Medicare supplement. There are several alphabet letters of coverage, A, G,N, F and others.
    How to shop. First, get an independent agent that specializes in senior health insurance. Here's a secret to find one way to find out if the insurance agent knows his or her stuff: Medicap coverage does not cover perscription drugs. if the agent is not certified to sell prescription coverage, leave the office. Go and find one who can fully cover you properly. Only the agents who can cover you for both medical and prescription drugs has been certified and trained to fully cover your Senior healthcare needs.
    Answered on May 14, 2016
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