Medigap or Medicare gap is classified as a supplemental insurance. You choose from Medicare Supplement or Medicare Advantage depending on your need, priorities, and financial capacity to pay. Medicare Supplement has a higher premium that can run from $100 to $350 a month. Because Medicare only covers 80 percent of health care epenses, having a Medigap will help absorb the remaining 20 percent. A person who needs continuous Medicare care is advised to get this type of Medigap plan to maimize its benefits. This plan comes in Plan A up to Plan L. Others are advised to get a prescription drug plan under Plan D to partner with the other types of supplements plan. These plans may be affordable to some as rates go from only $10 to $90 a month. Medicare Advantage, on the other hand, offers choices of Health Maintenance Organizations (HMOs), Preferred Providers Organizations (PPOs), Private Fee for Service, Medicare Special Needs and Medicare Medical Savings Account Plans. Compared to Medicare Supplement, Medicare Advantage premium is relatively low or $0 because it is funded by the government. In some states, it is only $26 per month. But, you need a co-pay when using the benefits of this Medigap plan. Because Medicare Advantage is a fairly new Medigap plan, the plans offered are different in different companies. There are some plans where Part D is already included in the policy. There are some companies where you have to purchase Part D as a separate plan. There can be savings from the premiums on this type of plan. Medicare has a $1,024 deductible for its Part A and $135 deductible for its Part B which results in your paying 20 percent of the charges with no limit. This is where the benefits of Medigap come in. - June 19, 2009 @ 12:51 pm