Medicare Supplement Plans in Arizona
However, don’t wait too long, missing the Medicare Supplement Open Enrollment Period (OEP) could cost more than a higher premium.
Arizona Medicare Supplement Plans
Let’s say George has Original Medicare and no gap coverage. Well, one day George experiences a heart attack and takes an ambulance to the hospital. George is the hospital for 7 days.
George needs to see a cardiologist. Then after lab work, George learns he needs to have a stent placed inside his artery.
Well, George has already racked up healthcare costs. Let’s take a look at his expenses so far.
Part B covers ambulance services. So, he’ll need to pay the $185 deductible for the ambulance plus 20% of the remaining costs.
Hospital admission requires Part A deductible; also, this deductible is $1,364 for 2019. After this deductible George will be responsible for 20% of the remaining costs; including all Part A and B services.
As you see, costs can add up quickly. Imagine George has Medigap Plan F; then, he wouldn’t have paid anything for all those services. The only expense he would concern himself with, the monthly plan premium.
Arizona Medicare Benefits
Original Medicare will only cover 80% of healthcare expenses after the deductible. That leaves deductibles and a 20% coinsurance the beneficiary must pay.
This is where a Medicare Supplement Plan comes in handy. Medigap plans cover deductibles, copayments, and coinsurance when applicable.
Also, delaying enrollment in Medicare Part B exposes you to the Part B late enrollment penalty. It’s best to enroll in Medicare and Medigap when first eligible.
Arizona Medicare Advantage Plans
Medicare Replacement Plans completely replace coverage with Traditional Medicare. MA Plans have low premiums and high out of pocket expenses.
Qualifying for this coverage only requires one health-related question.
Advantage plan restrictions are a shortcoming in this type of coverage. This can include coverage limitations, treatment with only in-network physicians and cancellation restrictions.
After paying months of copayments, may seniors discover that the Medigap plan actually saves money in the long run!
For example, if George has MA coverage the heart attack scenario could be pretty costly.
The ambulance would cost almost $300. Then the inpatient hospital stay will cost $185 PER DAY for days 1 through 7.
MA coverage is at least as good as Medicare. Medigap is complete coverage. The choice is yours.
Medicare Part D Prescription Drug Plans in Arizona
Medicare and Medigap plans don’t cover Part D expenses. It’s the beneficiaries responsibility to enroll in prescription coverage. When the Initial Enrollment Period (IEP) passes, a late enrollment penalty will likely apply.
Some Part D policies are less than $20 a month. However, the lowest premium isn’t always the best policy.
Let’s say George has the $20 a month policy and pays $80 for his medication; this policy might not be the best for him. Now if George has the $40 a month policy and Pays $20 for the prescription, then he’s saving money.
The $40 plan is offering George more value than the $20 policy.
To better discover the policy that works for you, contact us or fill out the information on Medicare’s plan finder tool.
Medicare Savings Program and Resources
There are state programs that provide free counseling and financial aid for those who need help.
State Health Insurance Assistance Program or SHIP can provide local help for people with Medicare, Medicare Advantage, Medicare Gap Plans or PDP Plans in AZ.
Best Medicare Supplements in Arizona
Medigap companies can offer up to 10 different policies; however, the most chosen plans are Medigap Plan N, F, and G. These 3 policies are the top plans across the nation.
Plan N covers the least amount and requires beneficiaries to cover more out of pocket. This plan costs a $20 co-payment for a doctor and $50 when visiting the ER without admission. The Part B deductible and Part B excess charges are the responsibility of the beneficiary.
Medigap Plan F covers the most, there is no out of pocket expenses on services Medicare would cover.
Then, Medigap Plan G; the only responsibility beneficiaries have is the Part B deductible. Most beneficiaries save several hundred dollars a year by choosing Medigap Plan G instead of Plan F.
Medigap Arizona Eligibility
Eligibility for Medicare Supplement Plans in Arizona starts once enrollment in Part B at 65 begins. Medicare beneficiaries have six months of Medicare Open Enrollment Period (OEP) rights to obtain Medigap insurance.
During OEP beneficiaries will have entitlement to Guaranteed Issue (GI) rights, this means the insurance company can’t deny you or increase the premium because of pre-existing conditions.
This is the best time to select a policy; outside of OEP the insurance companies can charge a higher premium or deny coverage. Most people aren’t denied, just charged more.
You can enroll in Medigap at any time; however, enrolling early saves you money. Also, delaying Medigap enrollment could result in denial or rate increase.
Arizona Medicare Benefits Under 65
Those with SSDI or Railroad Retirement Benefits after 2 years will automatically be enrolled in Medicare.
Federal law doesn’t require private insurance carriers to offer Medigap to disabled beneficiaries. However, some states will offer disabled beneficiaries one Medigap plan.
Most beneficiaries under 65 find relief in Medicare Advantage coverage. MA plans offer coverage that is at least as good as Medicare.
Although, Medicare won’t have a Maximum Out Of Pock (MOOP); MA plans protect you from spending over a certain amount by offering MOOP coverage.
Let’s say George’s MA plan has a $10,000 MOOP; then, the most he can pay out of pocket in the calendar year is $10,000. This only includes covered services.
If currently disabled in AZ, call us at the phone number above for information about plans in your service area.
When to Sign Up for a Medicare Supplement Plan in Arizona
As previously recommended, the OEP is the best time for beneficiaries to enroll in an Arizona Medicare Supplement plan. There are 6 months available to apply for coverage using Guaranteed Issue (GI) rights.
The benefit of GI is that pre-existing conditions don’t prevent you from obtaining coverage. Also, premium rates are lower than when underwriting a policy.
Medicare Supplement Plan Prices in Arizona
Medigap costs will vary depending on beneficiaries location, age, and gender. A gentleman living in Greenville, AZ will pay a different premium than a lady living in Scottsdale, AZ.
Additionally, each state and carrier has different pricing method provisions to follow. Issue-age is the most common type in this state. Issue age means the premium is based on the age you apply and only increases based on inflation.
Some companies offer an attained age type of policy, this increases because of your birthday. Let us help you compare them both and decide which is best for your situation.
Compare Medicare Supplement Plans in Arizona
Medicare only provides 80% coverage on an inpatient as well as outpatient care. Then, deductible expenses are a must before coverage begins.
A Medicare Supplement Plan can help with the extensive OOP costs. Medigap plans provide you with consistent bills, leaving you with no unexpected costs.
To compare Medicare Gap Plans or ask any questions give us a call today. Our licensed insurance agents are standing by and are always happy to help!
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