Medicare supplement insurance
A brief overview
Medicare supplement Insurance does exactly what it's name implies. It is a way to supplement your Medicare benefits to help cover costs that Medicare does not pay. Medicare covers 80% of your health care costs after you pay the deductible. the Part A and the Part B deductibles change from year to year and you guessed it, they go up! It is no wonder that people look to add supplemental coverage not only to cover some of the deductible expense, but also to help cover the 20% that is left over. Medicare does not put a cap on the amount of money that an individual could pay in one calendar year so costs can soar. By enrolling in a Medicare Supplement you can have better control the cost of your health care.
There are several different options to choose from when comparing supplement insurance. The plans have different benefits and varying monthly premiums depending on the amount of coverage that you choose. As you would expect the richer the benefits the higher the premium. The monthly premiums are also based on age, so as you get older you can expect the premiums to go up as well.
Medicare supplement insurance is NOT a Medicare Advantage plan. This is a common misconception, and not understanding the difference can lead to confusion, frustration and often results in enrolling in a plan that does not suit your budget or your needs. Both supplement insurance and Medicare Advantage plans help cover the costs of your health care, they just do it in different ways. Medicare supplement insurance pays after Medicare pays its share. Depending on the plan you choose, the supplement can pay 100% of what Medicare doesn't pay or it can only pay a portion leaving you to pay what is left over, In contrast,, Medicare Advantage is a way to get your Medicare benefits through a private insurance company. The provider (doctor, lab, hospital etc.) sends the claim to the insurance company instead of to Medicare and the insurance company pays the provider. Medicare Advantage monthly premiums tend to be much lower than Medicare Supplement premiums, but they often involve the payment of a co-pay for each service that is provided. Co-payments are the amount that you pay along with the plan, the amount of the co-pay varies from plan to plan and also depends on the type of service that is provided. Most Medicare Advantage plans include prescription drug coverage. Medicare supplements do not include prescription drug coverage, so you would need to enroll in a stand alone drug plan to help cover your prescription costs.
Medicare supplement insurance does not have an enrollment period so you can enroll in or change a plan at any time. Prescription drug plans do have enrollment periods so enrollment in these plans can only be done during an valid enrollment period. There are some important details to know before enrolling in or changing a plan, speaking with a licensed insurance agent can help you find out if enrolling in or changing a plan is right for you. The best decisions are informed decisions, so make sure that you have all of the facts before choosing your health care plan.
This is just a basic overview of how these plans work, if you would like more information, please contact us, we will be happy to answer any questions you have!