Many beneficiaries wonder what affordable Medicare plans are available in their area. Navigating the numerous letter plans, as well as keeping up with which ones are available, can be a daunting task.
We’re here to help make the task of searching for cheap plans a little easier.
Below, we’ll discuss some of your options.
Affordable Medicare Plans
Part A is free to most beneficiaries, and Part B has a premium. There are a few situations for higher-income earning beneficiaries where the Part B premium is more.
Part A provides hospital benefits and all services during a hospital stay.
Part B provides outpatient benefits, which include doctor’s office visits, labs and diagnostic imaging, outpatient surgeries, physical therapy, and ER visits.
The extra 20% is responsible for the beneficiary to pay out of pocket.
The remaining 20% can quickly add up and cost beneficiaries a lot in out of pocket expenses.
The good news is, there are other cheaper plan options that you can add to Original Medicare.
Affordable Medicare Supplement Insurance Plans
Supplement plans compliment Medicare benefits. In addition to the 80% coverage by Medicare, they provide secondary benefits for the other healthcare expenses.
The additional benefits can leave little to no out of pocket expenses for the beneficiary.
Generally, except for a few states, there are ten letter plans. Each plan consists of a mixture of benefits to pairing with Part A and Part B.
Even though benefits are the same across all carriers, each insurance carrier decides the monthly premiums, which will vary on a variety of factors.
Age, gender, and location are a significant factor in what each insurance company charges.
Top Affordable Medicare Plans for 2020
Plan G benefits include coverage for the Part A deductible, as well as the 20% coinsurance and copayments.
It also covers excess charges and medical emergencies while traveling abroad. The only thing it does not cover is your Part B deductible.
Plan N is one of the “cost-sharing” plans. Plan N is one of the more affordable Medicare plans but provides fewer benefits.
It offers coverage for the Part A deductible, medical emergencies while traveling abroad, and the 20% not covered by Medicare.
The “cost-sharing” term kicks in here because you do have to share the cost of some services.
There’s a copayment of up to $20 for office visits. There’s also a copayment of up to $50 for emergency room visits.
High Deductible Plan G is the next affordable Medicare on the list.
High Deductible Plan G was just introduced in 2020. It has the SAME EXACT benefits as the standard Plan G.
The only difference is the deductible, which is $2,340. Once your total out of pocket costs reach that deductible, your benefits will work the same as the standard Plan G.
Which of these Options are the Cheapest
Of these more affordable plans, Plan N, in most cases, comes out to be the cheapest option. With high deductible Plan G next in line, followed by the standard Plan G.
Why is Plan F Not One of the Cheaper Medicare Supplement Plans
You may be wondering why Plan F is not on this list. That’s because, even though it’s one of the most popular plans, it’s not the most affordable Medicare Supplement Plan. With higher premiums comes more benefits. It also comes with lower out of pockets costs in the long run.
Plan F is one of the most expensive plans, so if you’re looking for cheaper premiums, Plan F is not for you.
It’s also going away in 2020 for new beneficiaries, including the High-Deductible Plan F.
High Deductible Plan F premiums are much cheaper than the regular Plan F, due to the higher deductible.
Unless you were eligible for Medicare before 2020, you wouldn’t be available to enroll in any first-dollar coverage plan.
“Zero Premium” Medicare Advantage Plans
With Medicare Advantage, you get what you pay for.
Advantage plans REPLACE both Part A and B. You CANNOT have Medicare Advantage & Medigap at the same time.
Beneficiaries are attracted to Advantage plans because of the lower, or $0-dollar premiums. However, many restrictions do apply. Most Advantage plans come in PPO or HMO form and have a smaller network of physicians and hospitals to choose from.
Additionally, most of these types of plans require referrals for specialists and outside diagnostic testing and treatments. While these plans offer cheaper premiums, often, there are MULTIPLE copays that offset the lower monthly premium.
Due to many agents advising new beneficiaries to join an advantage plan, without explaining the many restrictions, Medicare was forced to bring back the Medicare Advantage Open Enrollment Period.
Too many beneficiaries were signing up for “affordable” Medicare Advantage Plans, then quickly realizing they did not have the coverage they wanted or needed. But they were stuck with the plan until the next Annual Enrollment Period.
Starting in 2019, if you signed up for an advantage plan that didn’t allow you to see the doctor you wanted to see or didn’t cover the pharmacy of your choice, you have another opportunity to switch back to Medicare.
You can instead pick up an affordable supplement plan and Part D. You can also switch to another advantage plan if you wish.
Compare Rates on Affordable Medicare Supplement Plans
To compare rates for affordable supplemental health insurance for Medicare beneficiaries, give us a call. You can also compare prices side by side using our online rate comparison form here.