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For many, age 65 means taking advantage of Medicare open enrollment. Medicare offers people 65 or older who are U.S. citizens low cost health coverage. In many cases those under 65 who are disabled or have renal failure may also qualify. In addition to Medicare, many people consider additional coverage called Medigap.
Designed by the government as supplemental health insurance that covers the costs that Medicare does not cover, a Medigap premium is payable for each person that is enrolled in Medicare Part A or part B. This type of policy only covers the primary insured person, so spouses or each person must have their own individual Medigap policy.
Medigap insurance is broken down into several categories and the Medigap premium will differ from policy to policy. All policies offer co-insurance for hospital visits and all plans except Medigap Plans K and L will offer co-insurance for Medicare Part B such as doctor's visits and diagnostics. Plans K and L are designed for a lower monthly Medigap premium and coverage for Medicare Part B, blood products, and hospital deductibles are only covered at 50% for K and 75% for L.
Medigap Plans F and J are also policies that may offer lower premiums, but the deductible for these policies may be as much as $2000. All Medigap policies cover preventive care and some even cover care outside the US or include an at home recovery benefit.
All Medigap Plans have been standardized by the federal government. While many companies offer Medigap insurance, these companies can also choose what Medigap Plan they want to or don't want to sell. The Medigap premium will vary depending on the Plan chosen and the geographic region the policy is purchased in.