Having only Original Medicare may not be enough to protect you from large medical bills, and there are services not covered by Medicare. Traditional Medicare covers only a part, 80 percent, of your healthcare treatment. This means you are left with 20% of whatever the bill becomes, in addition to any unmet deductibles or necessary copayments.
The best option would be to get an additional plan that can cover your medical expenses, more than Medicare Part A and Part B currently cover.
Medigap, also known as a Medicare Supplement plan, is a healthcare insurance policy that provides coverage for the out-of-pocket expenses such as coinsurance, deductibles and co-payments that Original Medicare expects beneficiaries to be responsible for paying.
Are Medicare Supplement Plans Worth It?
You must consider your specific health care needs and financial station, while many people could benefit from a Medicare supplement plan, others may find a Medicare Advantage plan is more beneficial to their situation.
The coverage that is best for you, may not be what is best for your neighbor. When you talk to a licensed insurance agent in your state, you will be confident in your coverage and have the peace of mind, knowing that your health plan is the best plan for you.
Medicare Supplement cost is slightly higher than most other healthcare plans available when you receive Medicare. however, it’s always good to know that you have full protection in case of an illness rather than to risk losing your assets to pay for your hospital bills. Comprehensive coverage might cost more, but it covers more.
Most people have opted to enroll in this additional coverage to give them peace of mind and financial stability.
Is the Cost Similar in all States?
The federal government regulates the benefits of the 10 Medicare Supplement plans, but it doesn’t have any influence on their costs. The plan rates vary in different insurance companies and states.
The insured should consider comparing different companies to avoid overpaying for what they need. Comparing prices includes checking how the insurance companies price their policies as well as the features that would contribute to increased rates.
Remember that the cost also varies from one letter plan to another; So, if you find a Plan G cheaper than a Plan F, you should see what both companies are offering the Plan G and Plan F for, then you can make the most informed decision.
When you talk to a licensed insurance expert, talk to one that has access to multiple insurance companies. This will ensure you are getting the best plan and company available to you.
What are the Criteria Used by Insurers to Determine Cost?
Insurance companies use different rating systems to determine the premium rates. The rates may be slightly lower initially but increase later as you age. Below are some of the ways that the insurance companies determine their premium:
- Issue age-rated plan: the carrier sets your rates on the date that you purchased the insurance plan. Aging does not lead to increase in the premiums, but they are bound to change depending on the inflation and other factors. The premiums are lower for the people purchasing the policy at a younger age than the elderly.
- Attained age-rated: the insurance companies set the premiums depending on the insured age at the time of purchase of the policy. This can be really beneficial for those new to Medicare.
- Community-rated: the costs for the insured remain standard for all beneficiaries regardless of their age.
How Do I Save Money When Purchasing a Plan?
You might end up paying more for your healthcare costs than you would have anticipated if you never enroll in a plan and have no additional protection.
Medicare Supplement plans might have a monthly premium, but many of these plans have little to no out-of-pocket costs. This means the money you would’ve spent on coinsurance, co-payments and deductibles is saved instead of spent on doctor visits.
It’s important to understand the costs and benefits provided by every letter plan to get the right coverage that caters for your medical expenses at a reasonable budget. Some of the ways that you can retain premiums on the lower sides include:
- Consider other coverage other than Medicare Part F- it attracts a large number of applications following its attractive benefits. However, it also comes with higher rates compared to the other policies.
- You may consider other plans, for example, Medicare Part G and Plan N that have attractive coverage options as that of F but lower premiums.
- Household discounts- some insurers provide household discounts while others don’t. Discounts tend to lower the costs incurred in paying the premiums.
- Don’t limit yourself to one carrier- Federal government standardizes these plans. That means that benefits offered by one plan are the same for all insurance companies. Call us today if you need help getting a plan provider in your state.
- Open Enrollment Period- applying for a plan during this period provides a guaranteed issue regardless of pre-existing medical conditions.
- Additionally, no one who applies during the open enrollment period is subject to any medical underwriting.
Initial Open Enrollment Period
Applying during your Open Enrollment Period grants you Medicare Supplement guaranteed issue rights, while at the same time maintaining your insurance premiums on the lower end. When you apply during the Open Enrollment period, your premium will be the lowest possible and you can’t be denied coverage because of health issues.
Find Out if Medicare Supplemental Insurance is Worth It
It is better to have some protection when it comes to your healthcare than it is to have no protection. Enrolling in a plan will help give you peace of mind and financial security.
Our team of professionals are ready to answer your questions. Call us today to find out if Medigap insurance is worth it for you! You can also fill out or compare rates form to have a licensed agent in your state compare rates with the top carriers today.