Every American over the age of 65 is entitled to enroll in Medicare. The program consists of two parts. Part A provides coverage for hospital stays and the majority of seniors are automatically qualified to receive this coverage. Medicare Part B is an optional service that requires the payment of a minimum monthly premium and covers some of the additional costs associated with regular health care, including lab tests, x-rays, doctor visits, and other outpatient services. Almost all Medicare recipients choose to purchase Medicare Part B.
Even with Medicare Part A and B, you will still have medical expenses that are not covered. Like any other health insurance, Medicare has coinsurance and deductible requirements. An additional policy is required for paying for prescription medications. Many seniors choose to purchase supplemental insurance coverage in order to pay these remaining costs.
Medicare supplement insurance is frequently called Medigap coverage as these plans help cover costs that standard Medicare does not pay. Medicare supplemental coverage plans are standardized by the federal government but provided by private insurance companies.
Many private insurance companies sell Medicare supplement policies in every state in the country. With so many different companies selling policies, it’s easy to get confused but there are truly only 10 Medicare plans available.
Medicare Part A and B have already been discussed. There are ten plans that cover the gaps between what original Medicare pays and what doctors and hospitals actually charge, which are designated by letters A through N. Medicare prescription drug coverage plans are those that are called Part D, which is always in their title. Of the plans available that cover the gaps, Medicare F, G and N are the most frequently selected for coverage. This does not mean that you should not consider choosing other supplemental plans that will provide for your own specific health care needs.
All insurance companies that carry Medicare policies are required to offer the same benefits under federal law. Any private insurance company offering a particular Medicare supplemental policy must provide the same coverage as every other company that offers the same plan in a particular state. This administrative policy makes it easier for you to know that the insurance plan you select from any given company offers comparable coverage to all other plans available.
Once you understand the coverage of each of the 10 standard Medicare plans available, you’ll have a good base knowledge from which to work. Now you just need to determine which of the supplemental plans may be right for you according to your specific health needs. Your state Department of Insurance has information on the different Medicare plans. The Federal Centers for Medicare and Medicaid Services also provides you with a good overview of the Medicare plans available.
Keep in mind that not all insurance companies offer all 10 Medicare plans. Purchasing your coverage from the same insurance company as your spouse can actually result in a discount so it may be advisable to select your plans from the same provider. Sometimes it can be less expensive to obtain coverage from multiple providers though so you will want to compare the costs of enrolling in multiple plans with each insurance company before making your final selections.
Online insurance quotes are an easy way to determine the cost of coverage. Many websites now allow you to select the plans in which you’re interested and then give you a listing of companies in your state that provide those plans. This method works well for giving you pricing on insurance plans and also provides details of the coverage for each of the plans.
You should also take into consideration the reputation of the company and the customer service the company provides. Each company will have its strengths and weaknesses, and you want to ensure that you are not only getting the best price possible but the best overall relationships as well. You will invariably need to communicate with your insurance company on occasion which makes their customer service that much more important. Automatic claims processing is another aspect of customer service that you will want to ensure is offered by any company you may choose.
You will want to compare premium costs for each insurance plan. Any deductibles or coinsurance costs should also be considered. You want to ensure that your budget will allow you to pay the ongoing costs associated with the plan before committing to enroll. Less expensive advantage plans will be those that limit coverage according to a specific network of health care providers. Those plans that cover all health care providers carry higher monthly premiums.
You should also find out what the insurance provider’s billing cycle is. Some companies charge premiums on a quarterly cycle; others require monthly payments. The billing cycle should be something that can be worked into your budget and allow you to easily make payments on time.
Some insurance companies also offer value-added services at no additional charge. These services can vary greatly between companies, but you may want to take into consideration the additional benefits when making your final decision. Some benefits are minor, like providing plan participants with free health or wellness-related information. Other benefits can be significant, including discounts on vision or hearing services and products.
Chris Brines is a representative of medicalsupplementshop.com. Our medicare supplemental insurance experts make the process of selecting a good Medicare supplement very easy by offering free advice about the Medicare Supplement plans offered in your area. We compare all Medicare Supplement Plans and prices to make sure you save as much money as possible while still receiving excellent coverage!