Medicare Insurance Plans - Understanding The Differences

If you are turning 65 and will be eligible for Medicare, you should consider getting one of the Medicare insurance plans that are available to you. Very few people become eligible for Medicare and decide that Medicare Parts A and B are enough coverage. There are just too many holes in Medicare not to consider purchasing a Medigap policy or joining a Medicare Advantage plan.

Anyone who has gotten close to Medicare age knows you are literally inundated with information mailed to you. The most important information is sent from Medicare. This unbiased information gives you an overview of your options. Publications such as Medicare and You and Choosing a Medigap policy: A Guide to Health Insurance for People with Medicare include must-have information, but many people find the reading dry and boring.

Insurance companies will almost bury you with literature when you are about to turn 65. Just look at all the four-colour brochures in your mailbox. Often, you get a high-level overview, but not what you really want, clear language and an idea of cost.

Comparing Medicare insurance plans

Many people don't understand that a Medigap policy and a Medicare Advantage plan are two different types of insurance coverage.

Medigap

A Medigap policy (Medicare supplement) is the traditional type of plan that has been around since 1965. It's called Medigap because it fills the gaps left by Medicare. Medicare Part A requires you to pay a hospital deductible and co-pays for extended stays and Part B requires that you pay 20% of all covered outpatient charges. A Medigap policy will, to varying degrees, fill these gaps.

Medigap insurance is available as one of several standardized plans. Plans will be the same from one company to the next. When you first become eligible for Medicare, you have an open enrollment period that lasts six months from the first day of the month that you become eligible. During this time an insurance company cannot refuse you the opportunity to purchase any policy that they sell, no matter what pre-existing medical conditions you may have.

If the Medigap policy is affordable, this is the best time to purchase. Compare rates with several companies, knowing that coverage will be the same no matter which company you look at. Standardization makes comparing Medigap insurance policies easy.

If you choose a Medigap policy you will also need to purchase a stand-alone Part D drug plan, because it is not included in this type of Medicare plan.

Medicare Advantage

Advantage plans are not Medicare supplements. But rather, you are receiving your benefits from an insurance company that is approved and contracted with CMS (The Centers for Medicare and Medicaid) to administer your Medicare. The idea behind this is that private insurance companies are more financially efficient than the federal government, and should be able to stretch the money allocated to give you more benefits.

Advantage plans do not fill the gaps, but rather give you set co-pays, co-insurance and deductibles that may control costs and limit your out-of-pocket expenses compared to Medicare. Advantage plans also often include Part D drug coverage, as well as many additional benefits not included in Medicare, such as dental, vision and hearing. Many people choose an Advantage plan because it will often have lower monthly premiums or no premiums at all.

Advantage plans also have an open enrollment period when you become Medicare eligible. Plans also have an annual enrollment period because companies contract for one calendar year at a time, and can change or discontinue plans each year.

Shopping for Medicare insurance plans

One of the most efficient ways of comparing Medicare insurance plans is to do some research online. You can often shop for plans and get rates without having to leave your home. Another option would be to meet with a trusted insurance agent. If you choose to do this, make sure your agent represents several companies. Armed with some knowledge, you can avoid costly mistakes and compare the best Medicare insurance plans available.

Compare Medicare Supplemental Insurance Plans - Get a Plan That Works

People who are just turning 65 are going to find that their lives are changing, and in some ways, the changes might even be for the better. Seniors in this country are eligible for a number of great benefits. One of the most commonly used benefits in the country is Medicare. This is a federally funded health insurance program that is designed to help seniors pay for all of their medical and health needs, including surgeries, prescription drugs, checkups, treatments, and items and accessories that make life easier, such as wheelchairs and canes. One problem with Medicare, however, is that it is often not enough to cover all of an individual's needs. For this reason, the federal government has introduced Medigap or Medicare supplemental insurance plans.

If you are in need of Medigap, then it is essential that you compare Medicare supplemental insurance plans. The first thing you will realize when you are looking at these plans is that they are offered by the same providers from whom you would have received coverage in the days when you were dependent on your individual plan. Unlike shopping around for individual insurance coverage, however, you will be pleased to know that Medigap is actually regulated federally, meaning that they can only charge a certain amount for coverage and each of the supplemental plans must cover certain costs. This will make it easier for you to choose a plan, and you won't have to be afraid of getting stuck with poor coverage that leaves you with huge bills to pay after each medical treatment.

You will find that there are Medigap plans A through L offered by each Medicare supplemental insurance carrier. Most seniors will need to have plans A and B which will cover basic medical treatments and prescription drugs. You can also expect to have to pay premiums on the plan B. When it comes to plans C through L, however, you will find that you have a number of different options. You will want to make your decisions based on two primary factors. You will want to have some idea of the kind of treatment that you will need, as well as how much you will be able to pay in terms of co-pays and deductibles.

If you are making the best choices when it comes to Medigap plans, then you can expect a few benefits. First, you will be covered for all of the treatment, care, and medication that you need to remain healthy. Second, you should expect to only be paying premiums. The best supplemental Medicare insurance will allow you to skip the annoying deductibles and co-pays. You will never have to worry about settling bills for treatments that you believed your insurance was going to pay for.