Medicare does not pay for your entire health care expenditure. Beneficiaries are required to pay a portion of medical expenses, such as copayments, deductibles and exceptional charges for assignments not accepted by doctors. Medigap or Medicare supplemental insurance Indiana, covers the lapses in coverage.
These policies are sold and marketed by private insurance players, but they still have to adhere to rules and regulations framed by the federal and state government. Only this plan can fill the gaps on Medicare coverage, other kinds of insurance do pay for similar expenses but they are not true supplement plans.
For instance, a retirement health plan from your employer may pay for vision, dental and prescription, but it does not reimburse for copayments and deductibles. Therefore, it cannot be termed as a genuine Medicare supplemental insurance Indiana, as it does not coordinate Medicare benefits.
Who needs Medicare Supplemental Insurance Indiana?
To answer this question, one needs to answer another question. Do you have enough assets and income to support the cost not covered by Medicare. If the answer to the above question is ‘no’, then it is better for you to purchase supplemental plan.
There are twelve options available in Medicare supplemental insurance Indiana to choose from. The plans are identified by letters from A through J. The plan A consist of the most basic features and plan J is the most comprehensive.
All the plans are standardized, which means a customer will find the same features regardless of the company with which he or she applies. Plan D from any company will be similar to each other; the only difference is with the price. The price variation is only due to the service provided by the company and operating expenses. There one needs to go through the price plan of each company while searching for supplement plan.
Generally, all the Medicare expenditure is covered by these ten standard plans, so before you finalize a plan one should know how a company calculates its premiums. An insurance company one of the three ways to calculate the premium:
- Age Issue: people who purchase the policy at the age of 65 will pay the same premium charged from a person of any other age.
- Attained Age: the premium is based on the current age of the person and increases along with the age of the person.
- No Age Rating: every person pays the same premium whatever their age may be.
Medicare supplemental insurance Indiana Department must approve the rates of premium for all Medigap policies. Very few private insurance companies sell Medicare SELECT policies, which is one of the supplement plans. The differentiating point of this plan is that the insured person is required to seek service from network of hospitals associated with the company, which makes this policy to cost lower than other plans in the group.
What does Medicare Supplemental Insurance Indiana Cover?
Of the twelve standard plans in Medicare supplement, every company is required to sell Plan A, the basic plan. The benefits provided by all the plans are almost similar. Here is a summary of what each plan has to offer:
The insured person has to pay a portion of the covered services from his or her pocket till the annual out-of-pocket limit is reached. This limit is $4,660 for Plan K and $2,330 for Plan L. As this limit is reached the plan pays the entire cost of Medicare coinsurance, copayments, and deductibles for the calendar year. This limit varies every year.
Part A Deductible
The initial amount which is not paid by Medicare for inpatient hospital stay in a benefit period, it is $1,156 for the year 2012.
Skilled Nursing Copayment
The expenditure incurred for skilled nursing facility for days 21 to 100; it is $144.50 per day for the year 2012.
Part B Deductible
The initial amount of $140 (for 2012) not paid by Medicare for physical and outpatient services for every calendar year.
Foreign Emergency Travel
Medicare does not cover for medical expenditure incurred outside the country. After a deductible of $250 per year, these benefits cover for 80% of emergency health care expenses received for the first sixty days of a foreign trip, up to a maximum of $50,000 for lifetime.
At Home Recovery
Medicare does not pay for skilled nursing care received at home. Medicare supplemental insurance Indiana provides coverage for assistance with daily activities, when home health coverage from Medicare is being received presently, or within 8 weeks from last home health visit, up to $1,600 in a given year.
Preventive services are covered by Part B at $0 deductibles and $0 co-pays. This includes abdominal aortic aneurysm, Medicare physical exam, measurement of bone mass, annual wellness exam, colorectal cancer screening, and others. Deductibles and co-pays apply to HIV screening, glaucoma tests, screening for prostate cancer, and counseling for smoking cessation.
Part B Excess
Medicare do not reimburse for charges more than the amount approved by it. With Medicare supplemental insurance Indiana one can cover up for this difference between the limiting charges and approved amount. This benefit either pays for the entire cost or 80% of the excess charges of Part B.
Medicare Supplemental Insurance Indiana: Conclusion
Medicare was designed by government to provide financial backup to people who needs health care service. But for unknown reason they left out certain loopholes in the plans, which needs to be covered up, or else Medicare will not be of much benefit to the insured person. Medicare supplemental insurance Indiana is a way out for people living in this state.