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Show Seniors: beware strategies for 'Medigap' fraud As part of this country's 30 million Medicare recipients, it is estimated that senior citizens purchase up to $3 billion in supplemental insurance to cover the deductibles, co-payments co-payments and other services Medicare does not cover. Known as "Medigap" insurance, many of these supplemental policies offer appropriate and useful coverage. However, "Medigap" fraud is rampant and many seniors are misled into purchasing policies that only duplicate services they are already entitled to. Although Washington is debating strategies for alleviating instances of "Medigap" fraud, consumer education is still the best defense. Senior Citizens should carefully review their supplemental coverage policies by observing the following guidelines suggested by American Fork Hospital. A single, comprehensive policy is better than several policies that provide more coverage than you need. Research and compare policies and choose one policy which supplies maximum coverage. It is illegal for advertising or insurance agents to claim that the government either sponsors or endorses supplemental insurance. The statement "no medical examination required" can be ' misleading. Examine the policy carefully to determine which health conditions might not be covered by the insurance. Be aware of policies that allow the insurance company to renew your policy on an individual basis. Consider your options and don't allow short-term enrollment periods to pressure you into a hasty decision. Avoid paying supplemental insurance premiums in cash. Pay by check or by money order. Document all payments, and keep accurate and up-to-date files of your forms and policies. Medicare coverage comes in two parts. Part A covers in-patient hospital care, minus a $492 deductible per benefit period. Part B can cover 80 percent of most outpatient out-patient services. The policy holder is required to pay the remaining 20 percent, plus a $75 annual deduction and a $15.50 monthly premium. Financial coverage of additional costs for deductibles, co-payments and other services left out by Medicare can add up quickly. While supplemental insurance policies can help fill in the Medicare "gap," seniors should exercise caution when choosing alternate policies. For more information, and for help with concerns, contact the business office at 756-6001 ext. 377. |
