Have you heard that the benefits of Medigap plan from your friends and relatives? This might inspire you to suspend your existing health care insurance and subscribe to this plan. However, if you ask us then we will say that it is a faulty approach. Nevertheless, we do say that Medigap plan does not have any benefit. Rather, we mean to imply that your idea about this plan is incorrect. Therefore, here is the correct way of looking at it.

• What is the Medigap Coverage?

If you thoroughly study your original health care insurance plan then you will find that it does not cover a number of diseases. This makes your condition vulnerable to spending enormous amounts in case you develop any of these diseases. Here, the role of Medigap begins. It extends the coverage of your health insurance so that you remain insured against these diseases too.

• Q. When it becomes effective?

In general situations, when you are within the US boundary you will not get any coverage from Medigap plan if you get affected by any if the diseases that are not covered in your original health insurance or Aarp Medicare Supplement. This plan only becomes active, and gives you coverage against the uncovered diseases when you are outside USA.

• Q. How is the coverage provided?

Usually, the coverage against a medigap plan is paid to the subscriber in the form of deductibles, co-payments or health care reimbursements.

• Q. What are not covered?

It is great to know that this plan will be of immense assistance to you when you are outside USA and fall sick. Nevertheless, we understand an equally practical approach to know about the coverage or medical facilities that will be provided by this policy. Under this non covered facilities come long term medical expenses like stay in nursing homes for prolonged span, cost incurred on dental care, expenditures made on eye treatment, paying the fees of private nursing provider, money spent on the purchase of prescription medicines or purchase of medical equipment like eyeglasses, contact lenses, hearing aids, etc.

The rising medical expenses and massive increment in healthcare cost is taking a toll on the monthly income of the households. While there is no way in which people can avoid expenditures on treatments, and checkups, the exorbitant bills generated by the hospitals and nursing homes are becoming the major reasons behind raised household of the general masses. Such situations make it mandatory that we go for Medical Health Plans that would give us financial assistance during medical emergencies. You can choose any of the plans you like from the ones listed below:

• Health Maintenance organization plan (HMO): This is the most common Individual Health Insurance. Therefore, the service providers of this plan are also easily available. This plan mostly includes all the major type of preventive care an individual requires.

• Preferred Provider Organization plan (PPO) : This plan is mostly suited for people who need to take a specialist medical consultation on a regular basis. However, the best part of this plan is that it can be availed by both husband and wife. Nevertheless, you need to pay a meager copayment for your recurrent medical consultations.

• Exclusive Provider Organization plan (EPO): The benefit of this plan is that you can get yourself checked by all the healthcare providers who are under this network. The downside of this plan is that those who are outside this network will not be covered. Hence, you have to pay regular fees for taking their consultations or availing their services.

• Point Of Service plan (POS): This plan is best for people who do not mind paying more for a flexible healthcare plan. You can consider this as amalgamate of the HMO and EPO. This means that you can go for regular check-ups and referrals simultaneous with spending extra for availing the service of health care providers who are outside the service.

• High Deductable Health plan (HDHP): People who want to economize on their health insurance premiums and do not prefer to exercise the facility of their medical coverage. As the name suggests, this plan features high deductable that should be met by the subscriber before it comes to effect.