Quote:
Originally Posted by Rainger99
Aren’t Medigap companies a for profit business?
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Yes, they are. But, they operate significantly different from advantage plans. Medigap plans are designed by the Government to pay the 20 percent copay that original Medicare doesn't pay. They have very little flexibility when paying claims. Basically, if Medicare covers it, they must pay for it. They cannot deny coverage of a claim approved by Medicare. The only flexibility they have is in how much they charge in premiums. So, they are basically a piggyback plan to Medicare, and they are heavily controlled by the Government.