Things to Compare in Medigap Plans 2012

People who are satisfied with their current policy may still wish to check what other companies are offering, in case of a better deal. As per federal law, insurance companies provide Medigap coverage which assist in paying out of pocket expenditure for Medicare parts A and B. these policies are standardized by the law and are identified by the letter A to N in the majority of states.

Each policy identified by a letter must provide the same features regardless of the company offering it. Usually, the only way to differentiate one policy from another is through cost – and there is a huge difference in prices from one company to another.

Compare Medigap Plans 2012 and Purchase when you are First Eligible

One needs to understand the importance of open enrollment period. As per law, insurance companies are at the liberty to use underwriting process to decide whether to accept a particular applicant or not and how much premium must be charged if the person is insured. Compare Medigap plans 2012 and apply for coverage during OEP, during this period one can purchase any policy from any company. And he or she cannot be denied due to health reasons.

Moreover, the person will be charged the same price as charged from a person in good health. Outside the OEP window, there is no guarantee that your application will be accepted by the insurance company in case you are not able to clear the medical examination. You should also remember when you compare Medigap plans 2012 that your rights in the plan will vary with the time you choose to enroll in the plan.

As a person turns 65, the open enrollment period starts when he or she enroll in Part B which cannot be repeated or changed. In the majority of cases, it makes sense purchase Part B when a person becomes eligible for the first time, or else one has to pay late enrollment penalty. However, people who are already enrolled in a plan through their employer or union, in case they or their spouse is still working, they may wait for sometime before they can wait before they can enroll in Part B.

The reason behind this is that, employer plans are almost similar to Medigap, so there is no use having a double coverage. As the employer coverage ends, one can enroll in Part B without having to pay for late penalty, which means the OEP in such cases will start when one can benefit from it. People who are already enrolled in part B along with the employer coverage, the open enrollment period will begin immediately, people who are unable to purchase the policy during this period will miss out this opportunity forever.