Understand the Medicare Basics
Beginners would do well to first learn what is covered by original Medicare A & B. Hospital coverage is provided under Part A. The premiums for Part A for most people are $0, but this doesn't mean there are no costs to you. You are required to share in your coverage costs in the form of the deductible for Part A Hospital stays, and also the steep daily hospital copays that you incur if your stay in the hospital goes past 60 continuous days.
Most beneficiaries pay about $100/month for their Part B Outpatient care. This care includes simple services like doctor office visits, but can also include more expensive services such as MRIs, chemotherapy and dialysis. Since Medicare only pays 80% of the cost of these services, you must pay the annual Part B deductible as well as the other 20%. You can avoid these costs by purchasing a supplement , also called medigap, to fill in those gaps for you.
Medigap Plans: Which One is Right for Me?
Medicare has standardized the supplements available to you. Each plan covers a certain set of benefits that fill in some or all of the gaps described above. Currently, we have Plans A - N, and one high-deductible plan. These plans are the same no matter which carrier you choose. For example, a Plan N has the same benefits with one carrier vs. another. To get started, review what each supplement option covers, and pick the plan letter that has the set of benefits you want. The most comprehensive and popular medicare supplement is a Plan F, which picks up the tab for all the deductibles and cost-sharing that you would normally pay under Medicare's rules.
How do I Choose the Right Insurance Carrier?
Since you know the benefits are the same despite which company you choose, you are now able to choose your insurance company based on things like the rate they offer, their financial stability, and whether or not they have a history of good rate trends. A seasoned insurance agent who specializes in Medicare-related insurance policies can assist you, free of charge, in examining the rates and reputation of some 20 or more insurance companies in your area. An added bonus is that an expert agent will be able to give you information that you might not have to ask - such as, what kind of rates increases has this carrier had over the last several years?
An additional bit of wisdom that a veteran senior market agent can offer you is an introduction to solid, long-standing insurance carriers who only offer health insurance to people on Medicare. Since these carriers don't provide health insurance products to people under age 65, chances are that you haven't heard of them in the past. Nonetheless, there are quite a few of these carriers with impeccable claims payment histories and high financial ratings, plus they sometimes offer lower premiums for the same plan than a more well-known carrier. In a nutshell, agents bring value to the table by ensuring you don't miss out on a terrific monthly rate with a low-profile carrier who is still financially strong.
Agents who specialize in Medicare-related products can simplify your learning and selection process by providing all the necessary statistics so you can make an informed choice. Then, after seeing you through the application process, your agent can be an esteemed advisor for you in regards to your Medicare questions for years to come.
Following these few simple tips about choosing the right medicare supplement will make a monumental task seem like a simple one.
Want to learn more about Medicare, then visit Danielle's website on how to find the most appropriate medicare supplement for your needs.
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