What You Don't Know About Medigap - Medicare Supplement Plans Can Cost You
As an Independent Broker who specializes in Senior Insurance and Medigap - Medicare Supplement Insurance, I see on a daily basis how important accurate information is. Making a sound decision is wholly dependent on acquiring knowledge about and understanding your options.
Many of my clients have told me that their search for information resulted in an avalanche of calls and emails from dozens of insurance agents leaving them frustrated and even more confused. This can become so overwhelming that they just give up, missing the opportunity to learn about an option that might better their situation and save them money.
Fact 1: There are marketing companies that will sell your information.
When you seek information online or fill in a form to win a prize you may be entering your personal information into a lead service. They will sell your information to numerous agents who contact with them to provide them with the names and contact information of people seeking information about Medigap- Medicare Supplement Plans. This is what starts the avalanche!
You can avoid this by always making sure that you are on a legitimate, licensed broker's website.There should be a toll free number for you to call and an email address for you contact them.
If you are required to give all of your personal information in order to receive a quote you may be in the wrong place.
Fact 2: Although the cost of your Medigap - Medicare Supplement Plan may vary from company to company, the benefits are exactly the same.
There are currently 10 standardized Medicare Supplement Plans. PLAN A, PLAN B, PLAN C, PLAN D, PLAN F, PLAN G, PLAN K, PLAN L, PLAN M and PLAN N. The benefits in each of these plans are approved by the Center for Medicare and Medicaid Services (CMS). All insurance companies who offer Medicare Supplement Insurance Plans must comply with the approved benefits for the supplement plans that they offer.
Even though the benefits in each of the different plans are the same no matter which company is offering the plan, there are big differences in the prices of the plans from company to company.
Knowing this fact and taking the time to compare prices may save you 30% or more on your Medicare Supplement. A few minutes really can save you money.
Fact 3: You are NOT locked into your Medigap - Medicare Supplement Plan until Open Enrollment.
Medicare Supplement Plans are not subject to any annual enrollment periods. You are free to change plans any time of the year.
Knowing this fact frees you to compare your plan options and switch to a different plan or company at any time. If you find that you can get the same plan for a better price from a different company, you can switch and start saving immediately.
Fact 4: You ARE locked into your Part D Prescription Plan until open enrollment.
Part D Medicare Prescription Plans (PDP) are Medicare Approved plans offered by private insurance companies.
They vary in terms of monthly premium, deductible, and co-pays. Each plan has a unique formulary. A formulary is a list of drugs that the plan covers and where the specific drug fall on the plans co-pay tiers.
We did a comparison of 27 different plans available in Florida. We used a sample drug list which contained 5 drugs, 4 generic and 1 named brand. The estimated annual drug cost ranged from $734 for the least out-of-pocket plan, to $2623 for the highest.
Being in the wrong PDP can really impact your bottom line.
Write a reminder on your calendar for October next year and take the time to make sure that you are in the right plan for your specific drugs during the Medicare Annual Enrollment Period. This is the only time of the year that you can change your PDP.
I hope that these 4 important facts about Medigap - Medicare Supplement Plans will help you keep more of your money in your pocket.
Stephanie Coutavas is an Insurance Professional specializing in Senior Insurance Solutions and Medicare Insurance. Co- founder and Senior Broker at MedicareQuote4U.com-Common Sense Insurance Solutions Group. Stephanie decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper,correct information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker."
Whether you are receiving Medicare Benefits before age 65, helping a parent or loved one or just not sure if there might be a better value for your health care $$$, we can help. Call us at 1-888-347-5552 to speak with a licensed Medicare Supplement Specialist or visit us at
http://www.medicarequote4u.com/. We are your Medicare Supplement experts and we are standing by to help.
Medigap - Benefits of Using an Independent Agency
As the Baby-Boomers turn 65 and start utilizing their Medicare benefits, many will have both the desire and the financial means to purchase some sort of additional insurance to fill in the gaps that Medicare leaves for the consumer to pay. This is where an independent agency is an extremely useful resource.
When people think about buying Medicare supplement insurance often the first thing that comes to mind are the big names: Anthem Medicare Preferred, Aetna, Blue Cross, Gerber, Mutual of Omaha, Sterling, etc. Some will spend hours calling or combing the internet trying to ring out the best deal for themselves. While this self-reliance and can-do attitude is noble, what if there is a very simple and easy way to ensure you get the lowest priced Medigap plan? This is where an independent agent comes in!
There are two types of insurance agents that you will meet when you wander through the woods of insurance shopping. The first and most prevalent is the captive agent. A captive agent is an agent that works for a particular insurance company and only sells insurance for that company. The reason they are so prevalent is because when an insurance agent starts off selling insurance they make very little money. Most agents cannot afford the cost of starting a small business, then going without a paycheck for many months. This means they have to sign with a big company that will sponsor them. The other type of insurance agent is an independent agent. This is an agent that is licensed in any particular state to sell insurance and can sell insurance from any company with which they have a contract. Most are contracted with several companies.
The benefit of using an independent agent is that they can compare the costs of all the insurance companies in your area and find you the lowest price. Also, your Medigap policy will not cost you any more if you use an independent agent. Many agents will even pay the mailing costs to process your application. Then in the future when your premiums rise, the independent agent can compare prices again to see if there is a better priced supplement plan for you.
Word of caution! Many seniors will go on the internet and start making quote requests on various web sites. This leads to them being bombarded with agents emailing them and calling them at all times of the day. It doesn't even matter if you are on a do not call list because you are granting permission to be called when you fill out the form. The reason for this happening is many of the internet sites that come up are there simply to collect people's information and then sell it to multiple agents and insurance companies. All Medicare Supplement plans are federally and state regulated, so there is no need to go through this hassle. The ABC plan of one company has the same exact coverage as the ABC plan of another. Also you cannot buy the plan of one company cheaper from one agent than you can another agent. The playing field is level.
So, save yourself a lot of hassle and time and find an independent agent from which to request your insurance quotes. To learn more about more about Medicare and Medicare supplement insurance from a licensed independent agency, visit us today at http://centaurmedicaresolutions.com/
Joel Moyer is an owner and independent agent for Centaur Medicare Solutions. Prior to being licensed as an insurance agent, Joel served in the US Army for over twenty years. His service included many places around the United States and countries including Iraq, Saudi Arabia, Egypt, and South Korea. A more extensive bio is available by clicking his picture on our website.
Medicare, Medigap, Medicare Advantage - Demystified
If you are like many folks, you have struggled to understand your Medicare benefits. Parts, plans, deductibles, co-pays, co-insurance, Medicare supplement, PPO, HMO, POS, MAPD, language that seems to go in circles. You don't have to be a Medicare expert to understand your benefits and choices. The first step is to gain a clear understanding of some Medicare basics.
The Four Parts of Medicare.
Medicare consists of four parts. Each part is designated by a letter. A - D
Medicare Part A covers room and board and some other expenses in an inpatient situation. This can include a hospital, skilled nursing facility and hospice care. Medicare Part A has a deductible and co-insurances that you will be responsible for. Most people do not pay a premium for Part A.
Medicare Part B is the outpatient side of Medicare. This includes doctor visits, surgical services, physical therapy, speech therapy, durable medical equipment, home health care, outpatient testing and some drugs. Part B covers 80% of approved amounts for these expenses after you have met your annual deductible. Part B requires a monthly premium. Enrollment is optional. In most cases there is a late enrollment penalty that will be added to your premium if you delay enrollment in Part B unless you have other creditable coverage. There are limited enrollment periods every year when you are able to enroll in Part B.
Parts A & B are what is known as original Medicare. It was created in the 1965 with the first benefits paid in 1966 to help seniors with medical expenses. It is a government health plan. It covers most of your medical expenses. There are gaps in the coverage and most seniors cover all or some of the gaps with a Medicare Supplement insurance plan. Thus creating a situation where they can control and predict their medical expenses from month to month and year to year.
If you choose to stay with original Medicare you can use any doctor or hospital anywhere in the country as long as they accept Medicare.
Medicare Part C is Medicare Advantage. Since 1997 seniors have had the option to enroll in private Medicare Insurance. The Plan Provider is paid with your Part B premium and an additional amount from Medicare for each enrollee. These plans are required to cover at least what Part A & Part B cover. Some Medicare Advantage Plans, for example Anthem Medicare PPO include benefits not found in original Medicare like dental coverage, eye glasses and gym memberships. Some of the plans include prescription coverage. There are several types of Medicare Advantage Plans; HMO, PPO, PFFS, and POS. It is very important to remember that the coverage in a Medicare Advantage Plan is the same coverage as Medicare Part A and Part B. It is not the same as Part A and Part B with a supplement. All Advantage Plans will have out-of-pocket expenses in the form of co-pays for office visits, daily co-insurance for hospital stays etc. You are not permitted to add a supplement policy to your Advantage Plan to cover these costs. Regardless of the type of Advantage Plan that you choose, be aware that you will have to choose from providers who accept your specific plan or be ready to pay increased out-of-pocket expenses.
Medicare Part D is Medicare's prescription coverage. These plans are made available by private companies like Anthem Medicare plans. Medicare mandates and approves the plans that are offered. You will have a monthly premium for the Part D plan that you choose. You may choose to not enroll in a Part D plan but keep in mind that you will pay a late enrollment penalty when you do enroll. The fine will be based on the number of months from when you were eligible for Part D and the month you enrolled. Enrollment opportunities are limited to Medicare Enrollment Periods each year.
By taking a moment to understand what each Part of Medicare covers and knowing where you are exposed within the coverage of each you have provided yourself a solid position from which to plan a solution that works for your unique situation.
Stephanie Coutavas decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker."
Whether you are receiving Medicare Benefits before age 65, helping a parent or loved one or just not sure if there might be a better value for your health care $$$, we can help. Call us at 1-888-347-5552 to speak with a licensed Medicare Supplement Specialist or visit us at http://www.medicarequote4u.com/. We are your Medicare Supplement Experts.
Medigap Options
Though this segment is dedicated to the appropriate supplement for Medicare it is prudent to explain differences in what Medicare advantage plans would provide as well. As stated above traditional Medicare covers certain medical needs for seniors. The government covers (by paying doctors and hospitals) certain senior medical needs based on a fee for service schedule.
There are options for seniors to be covered by an advantage plan with 0 out of pocket monthly . It goes without saying that where one medical plan may be ideal for an individual; the same medical plan may fall short of covering another individual's needs. Advantage plans are plans in which the government pays insurers a specific amount monthly for every Medicare member that they enroll (the plans cover hospitals and doctors as well).
Individuals covered under advantage plans are able to choose HMO plans which require advantage recipients to choose from a network of health care providers as well as PPO plans which allow for in network providers as well as out of network providers. It should be noted that individuals going outside of the network would likely have to pay additional fees. All advantage plans offer the same benefits (regardless of the insurer). However, the benefit to the Medicare Advantage plans is that they cover things such as hearing, vision and dental care whereas traditional Medicare plans do not. Medicare Advantage has become increasingly popular due to the advantages provided over and above traditional Medicare.
However, that is precisely the issue that critics raise. Advantage plans are said to "pay out" more than traditional Medicare plans. The congressional budget office has estimated that over 150 billion additional dollars has been spent in the last 10 years on advantage plans (that would not have been spent with standard Medicare). Ultimately, the additional expenditures mean more money spent by taxpayers. Which is why Medicare Advantage plans have been targeted by government and health care reform.
With Medicare Advantage plans being heavily scrutinized and funding likely to be cut at least to some extent, supplements are becoming more appealing. Where advantage plans offer 0 out of pocket, a supplement for Medicare would require some payment by the senior. Where advantage plans replace traditional Medicare, a supplement for Medicare is literally that€a supplement that covers certain holes left by traditional Medicare. Therefore, Medicare is considered the primary plan and a supplement for Medicare is considered secondary to the plan.
Medigap plans are also offered through private insurers at specific cost. Medicare supplement plans are also considered Medigap plans as they fill the gaps left by Medicare. Gaps such as Deductibles, Coinsurance and Co-pays can be filled with an appropriate supplement for Medicare. Any doctor that accepts Medicare should accept a supplement for Medicare. Medicare participants must be enrolled in Medicare part b in order to be eligible to buy a Medigap plan. Medicare part b covers things like doctor services, outpatient care, home health services as well as some preventative services.
There are several Medigap plans available and participants typically need not go through underwriting if they will attain the age of 65 within the next 6 months(and two months following their 65th birthday). Open enrollment occurs from November 15th through December 31st and this is the time that changes may be made by existing supplement users. Medigap options vary and are labeled A through L. Each plan offers different options to fill the holes left by traditional Medicare plans.
Core benefits include hospital coverage for specific periods during Medicare benefit period, approved hospital cost for co-payments during specific periods, skilled nursing coinsurance, doctor deductibles, foreign travel emergency coverage, at home recovery, drug benefit as well as preventative care. Benefits vary from plan to plan and may be viewed in the Medicare handbook.
