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The Different Types Of Medicare Supplement Insurance Plans
When you’re shopping for your own health coverage, you don’t have to settle for just any type of plan. You get the advantage of choosing the right plan for you.
And you have plenty of options.
Types Of Medicare Supplement Insurance Plans
There are several kinds of policies for you to choose from. Here are a few of the most popular.
Medigap / Standardized Medicare Supplement Insurance Plans are private health insurance plans that are designed to supplement Original Medicare. This means Medicare Supplement Insurance helps to pay some of the health care costs (gaps) that Original Medicare doesn't cover. If you have Original Medicare and a Medicare Supplement Insurance (Medigap) policy, Medicare will pay it's share and your Medigap will pay the remainder. Every Medigap plan must follow federal and state laws designed to protect you. Each standardized Medigap policy must offer the same basic benefits no matter which insurance company sells it. Cost is usually the only difference between Medigap policies.
Health Maintenance Organization (HMO) Plans are also a type of managed care, and offer you even greater savings. The tradeoff is your choices are more restricted. To get coverage from your HMO policy, you must choose a “Primary Care Physician,” and you must always get care from approved in-network” providers. For most people, this is a small drawback compared to the affordability of HMOs — which often feature no premium.
Point Of Service (POS) Plans combine managed care with traditional health insurance coverage. Just like an HMO, you select a Primary Care Physician to see for routine care. But when you need to see a specialist — or get a second opinion — you're free to see any doctor you choose.
Fee For Service (FFS) Plans aren’t as popular as they once were. These plans are modeled after traditional “indemnity” insurance. In an FFS plan you pay for your care up front, and are reimbursed by your insurance company after you file a claim.
Preferred Provider Organization (PPO) Plans are a popular choice for people who value flexibility. A form of managed care, PPOs give you the most savings when you get care from a doctor, hospital or other provider within the plan’s “network”. But even if you do choose to receive care from outside the network, your PPO still provides some coverage.