Tag Archives: Medicare Supplement

Medicare Supplement Plans – How They Work

Medicare Supplement plans are plans that are designed to fill in the “gaps” in “original” Medicare. “Original” Medicare includes Medicare Part A (hospital inpatient) and Part B (outpatient/doctor). These plans are consistent across companies – all companies are required to provide the same standardized benefits. This makes it very easy to understand the plans and how they work. Here are the top three things that you must know when looking at Medicare Supplement plans:

Medicare Supplement plans (also called Medigap) are Federally-standardized. The plans all provide equal coverage for “like” plans. What this means is that a Plan F with one company is the exact same as a Plan F with another company. Because of this, it is important to compare the plans on the basis of monthly premium and company rating or reputation. Price being equal, it is preferable to be with a company that has a long track record of involvement in the senior insurance marketplace and/or a high financial strength rating.

Medigap plans can be used at any doctor or hospital, nationwide, regardless of which company sells you the plan. Many types of insurance are network-based; however, this does not apply to medicare supplement plans Wisconsin. Even some types of Medicare plans – Medicare Advantage plans – are network-based in most cases. On the contrary, Medigap plans give you the flexibility of using the plan anywhere in the country that takes Medicare. This flexibility, particularly for someone that travels, is one of the many reasons that these plans have become increasingly popular as a way to supplement Medicare coverage.

Medigap plans all pay claims through the Medicare “crossover” system. There is no variation in how quickly or how efficiently one company pays claims versus another. While some companies may use the selling point of their timeliness in paying claims, this is not altogether accurate when it comes to this type of insurance. Because the plans are Federally-standardized and pay claims this “crossover” system, you can be assured that, regardless of the company, the claims are going to be paid in a timely manner and with minimal (usually no) involvement from the insured. Once you have a plan, you just need to present your plan identification card with your red, white and blue Medicare card when receiving services from a doctor or hospital.

Altogether, Medicare Supplement plans continue to be a viable option for those on Medicare, who wish to limit their exposure to out of pocket expenses. With only Medicare, you are subjected to paying approximately 20% of all medical costs. With a Medigap plan, however, you can greatly reduce or, with some plans, completely eliminate your out of pocket costs.

Best Medicare Supplement Plan – An Overview

What is the best Medicare supplement plan that is currently out in the market? Trying to answer that question without putting the situation into context actually does not mean anything for any prospective Medigap policy owner. At face value, it would be tremendously easy to say Plan F carries the most comprehensive and can therefore be called the best Medicare supplement plan, but when you begin considering premium cost and suitability, you might not be so keen to agree. The truth is that there is no single best Medicare supplement plan that suits everyone. Getting the right plan for you requires analyzing the trade-offs and implications of each selection. Consider the following important pointers when assessing Medigap plans:

The more comprehensive the plan coverage, the more expensive is a specific plan. The most basic Medigap offers would fall in the range of $90 to $110 per month and the most comprehensive plans cost about $450 or even higher depending on your location. The wide difference in premium cost is a very big determinant of what constitutes as the best Medicare supplement plan on the market. As an extension of the cost consideration, suitability is also critical when assessing and comparing Medigap plans. Suppose you can pay for $450 Medigap plans because money is no object. However, if your medical needs can be suitably met by $180 plans, would you really be as keen in purchasing the more expensive Medigap policy? If so, doesn’t that mean that you’re only throwing money away, money that you’ll never end up using? Striking a balance between coverage and need is the most important criterion before one can say they have chosen the best Medicare supplement plan for themselves. To get more info on Mutual of Omaha Medicare Supplement Plans.

Keeping these considerations in mind, here are some tips on how you can get the best Medicare supplement plan for your needs.Assess your needs properly. A year before you become eligible for Medicare and Medigap, talk to your doctor about your most common medical needs and make a list so you know in which areas a Medigap policy will help you best.Shortly before choosing your plan, narrow down your selection to 2 or 3 plan options. Before seeing the quotes, don’t limit yourself to just one plan type. You never know when you can get favorable offers that can address your needs and still meet your budget.

Get as many available quotes and offers as possible so you have a wide array of comparison. Many websites offer a listing of quotes in your state. Alternatively, you can directly ask for a quote from companies you are familiar with. Don’t limit your options.Think it through before choosing. The best Medicare supplement plan is a product of a deliberate decision-making process. You cannot find it with impulse decision-making.You always have the option to change your plan later on. Assess and think about the other options even after you’ve chosen and signed up for a specific plan.Good luck on your search for the best Medicare supplement plan for your particular situation. May the plan that you choose serve your needs well in the long run.

If you would like to be a lot more knowledgeable on the Medicare and Medicare supplement insurance, be sure and look through the over 100 articles we have on this important subject on our website.