Medicare Supplement Insurance

Medicare and what all the letters mean

The main parts to Medicare:

Medicare Part A – Hospital

Medicare Part B- Doctors and tests

Part D- Prescription drug plan

Medicare Supplement Insurance- A popular insurance plan also known as Medigap to cover the gaps in Medicare Part

A and Medicare Part B.  All Medicare Supplement Plans will have a letter A through N.  For example, Plan F or Plan G.  If it doesn’t have a letter then it’s not a Medicare Supplement Plan.

Medicare Part A costs- Typically if you worked for part of your life then there is no premium for Part A if you are age 65 or over. It helps cover inpatient care in hospitals, skilled nursing facility care, hospice care and home health care. However, it does not cover long term care which is why some acquire Long Term Care Insurance.

Part A deductible- In 2019, the deductible is $1,364 which is not an annual deductible but a per benefit period deductible.

Medicare Part B costsHelps cover services from doctors and other health care providers, outpatient care, home health care, durable medical equipment and many preventative services. It also helps pay for test, x-rays, shots and supplies.

Part D- Prescription drug plan

Medicare Supplement Insurance- A popular insurance plan also known as Medigap to cover the gaps in Medicare Part A and Medicare Part B.  All Medicare Supplement Plans will have a letter A through N.  For example, Plan F or Plan G.  If it doesn’t have a letter then it’s not a Medicare Supplement Plan.

Medicare Part A costs- Typically if you worked for part of your life then there is no premium for Part A if you are age 65 or over. It helps cover inpatient care in hospitals, skilled nursing facility care, hospice care and home health care. However, it does not cover long term care which is why some acquire Long Term Care Insurance.

Part A deductible- In 2019, the deductible is $1,364 which is not an annual deductible but a per benefit period deductible.

Medicare Part B costsHelps cover services from doctors and other health care providers, outpatient care, home health care, durable medical equipment and many preventative services. It also helps pay for test, x-rays, shots and supplies.

Medicare Part B PremiumIn 2019, the monthly premium is typically $135.50 for most people. However, for upper income folks it can cost more.  They take the last 2 year average of tax returns. If you made more than $85,000 on an individual return or above $170,000 on a joint tax return then your Part B premium will be higher.

Medicare Part B deductibleIn 2019, the part b deductible is $185 per year.

Medicare Part B coinsurance20% with no cap or max if you don’t have a Medicare Supplement Plan.

Part D- prescription drug plan

It’s a separate policy and we believe that is a good thing.  We have found people’s medication needs change a lot over the course of time.  Having the Part D separate from their Medicare Supplement allows them the ability to change their Part D when needed without touching the Medicare Supplement.  Part D does have an Annual Enrollment Period each year starting in October through December.  If you want to make a change this is your time for the year to do it.

Part D plans can range between $15 per month to $75 per month depending on which plan you choose.  Medicare charges a penalty for every month you do not have a Part D plan that you are eligible for one.  It is a good idea to get a Part D plan when eligible to avoid the penalty.

Medicare Supplement Insurance Plan- These plans cover the copays, coinsurance, deductibles and Medicare excess charges that Part A and Part B do not.  Some Medicare Supplement Plans will not cover the Part B deductible and some will charge a copay for an office visit.  One of Summit’s licensed Medicare experts can help answer your questions and show you which plans cover what.

Monthly premiums vary and are based on age, smoking status, the state and zip code you live in.

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Benefits of a Medicare Supplement Plan (Medigap)

  1. No network – You can go to any doctor or hospital in any state you want.  If they take “Medicare” then by default they also take the Medicare Supplement Plan regardless of who the insurance carrier is.  It’s the law & they also want to because it’s great coverage.
  2. Benefits CAN NOT change.  When you pick your plan you could keep it the rest of your life if you want.  Even if they do away with that particular plan at some point.  The person can still keep it forever.  The benefits do not change as long as they have it.
  3. Zero Coinsurance
  4. Zero Co pays
  5. Zero or very small deductible
  6. Guaranteed renewable – Which means the only reason they can ever cancel the policy is for nonpayment. As long as you make the payments you never have to renew or switch the policy.
  7. Can change policies at any time in the year that benefits you.  You do not have to wait for any Annual Enrollment Period.

 

How an independent Medicare Insurance Agent can help you:

  1. They work for you, not the insurance agency.  An agent that specializes in Medicare will have all the top “A” rated carriers in your area. They will do a full analysis of the plans available to you and help you narrow down which ones will be the best fit for your specific needs.  Just because your neighbor or friend went with Plan X from ABC Company doesn’t necessarily mean it’s the right one for you.
  2. You do not pay them. The service is free to you.  Much like when buying a home and you use a buying real estate agent. The only difference is the insurance carrier pays the Medicare Insurance Agent rather than the seller of the real estate. Insurance rates are fixed by the state…you can’t get a better deal.
  3. An agent that specializes in Medicare will save you a ton of time. There is no way for a person to keep up with all the changes to Medicare & Medicare Supplement Plans in addition to the changes in premiums.  It would take you weeks or maybe months of research to do a similar analysis of the market so you can make an informed decision.  However, you still would not have the information that a good agent knows about the inner workings of the industry.
  4. A good Medicare Agent will also save you money. They will also show you where you are saving money and why.

We would be happy to answer any questions you have and show you what’s available. Click to run a Medicare Supplement Quote or give us a call at 888-407-8664.

We make Medicare seem easy™. We help our clients get the Medicare Supplement that works best for their needs at the best premium.

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