According to the survey carried out by the U.S. Government, an average human being spends about 20% of his total earning on medical expenses. There can be several reasons why we invest such a large amount of health-related expenses. Firstly, change in our lifestyle. In the present day, our lifestyle has changed drastically with respect to the lifestyle we led twenty years back. Secondly, the amount of pollution due to industrialization has a severe negative impact on our health.
People who can actually benefit from this:
A person who is still working is mostly medically insured by the company they are working for. But a retired person who is no longer working can face serious financial problem while paying medical bills. Mostly all of us have a basic medical insurance called Original Insurance which covers the hospital and medical bills but there are still certain expenses that are not covered by this insurance. There is a medical insurance which is offered by private insurance companies to fulfill this gap. It is known as Medicare Advantage plans.
Working of the Medigap:
The work of the Medicare Advantage plans is to advantage the Original insurance. The amount that is not covered by the basic insurance plan may sound to be less but in reality, it can become quite a sum and old people may face serious issues dealing with them.
There are some eligibility criteria to buy a Medicare Advantage plans. A person must at least be 65 years old, but in some states of the USA, there are certain companies who sell this plan to people less than 65 years of age. A person must have an Original Insurance before buying this Medigap Plan.
The Medicare Advantage plans are not a stand-alone insurance and it can only assist the Original Insurance. Many people often confuse this plan with Medical Advantage Plan. The work of the Medical Advantage Plan is to enhance the Original Insurance but Medigap only bridges the gap between the hospital bill and Original Insurance.
Since there are many insurance agencies that sell Medicare Advantage plans, the pricing or premium policy is different for each agency. Some price the plan irrespective of the age of the insurer, some calculate the premium based on the edge of the insurer when he bought it and another policy is yearly calculation of premium where the insurer’s present age is taken into consideration. The Advantage Plan is valid outside the boundaries of the United States as well.