The best medicare supplement plan is a question I get asked about all the time during my work with people on medicare. Essentially the best
medigap plan is the one that you can afford and that is in force at the time you need it. That is the short answer to the question, however the longer answer is a bit more complicated then that. You see up until about 20 or so years ago, medicare supplement plans were like the wild, wild west- insurance companies were offering all sorts of different coverages. Unfortunately most people did not know what they were really covered for. All of the plans had different items, some even included drug coverage for certain things. This is when CMS stepped in and put a stop to it. They modernized the medicare supplement plans and made them standard A-N. They also got rid of some plans, for example J which duplicated benefits that were similar to medicare supplement plan F. In any event this made it easier for consumers to fully understand what they were getting when it comes to deciding on the best medicare supplement plan! Make sure to give a call for quotes today 844-384-5925. Contact us as well for quotes.
I would like to Discuss the Following in This Article:
To begin- a medicare supplement plan or a medigap plan is sometimes referred to as a secondary insurance. These medigap plans are designed to pay for what original Medicare does not or in other words plug the gaps. Many people are under the assumption that Medicare pays the full bill when you are sick or in need of a doctor’s care. This is unfortunately far from the truth.
While Medicare does a good job of picking up the lion’s share of the bill, there are still many expenses that a medicare supplement plan can help to pick up. For example there is a part A deductible that you must meet the first day that step foot into a hospital. This usually runs around 1300 dollars or so. Then usually after several days of being in the hospital, if you still require substantial care, then you most likely be shipped off to a rehabilitation or skilled nursing facility. There you will get the first 20 days paid for by Medicare. After that you will be charged 165.00 dollars per day for days 21-100. After that if you still require skilled nursing, then you are responsible for all costs.
As far as part B of medicare goes, this is the 80/20 rule generally. Medicare is going to pay 80 percent of the bill and you are responsible for 20 percent. So every year you will have to meet that deductible when you first utilize your part b to go to the doctors or other part b services. The deductible for part b is 188.00 for this year 2017. These deductibles fluctuate every year so you should check with your insurance agent what the new deductible is each year. Other expenses aside from the doctor that fall under part b are, certain lab tests, outpatient surgery and services, x rays, blood work, durable medical equipment just to name a few. See medicare.gov for a complete listing of all services.
There are 10 standardized Medicare supplement plans available in most states. In Massachusetts, Minnesota, and Wisconsin, Medigap policies are standardized in a different way. The plan names are letters of the alphabet, plans A, B, C, D, F, G, K, L, M, and N. As we mentioned earlier you may see some letters missing. This is because a few of those plans duplicated other plans, so they were removed to reduce confusion among consumers. In any event, as a side note plans A, B, and C are for people under age 65 and are on medicare with disabilities. However people age 65 and over can also get in on these plans.
So what exactly can these medicare supplement plans do? They plug the gaps or deductibles that we discussed in the previous paragraphs.
For example Plan A takes care of some of the core benefits and the part A deductible. If you take a look at plans B and C they improve upon the coverage that you can get with a basic medicare supplement plan A. Now if you skip over to medicare supplement plan F, you will note that it covers even more than what medicare supplements plan A, B, C, or D cover.
Medicare plan F is often thought of as the “cadillac of plans” because of its full coverage type features. Plan G can also be a very attractive plan, as it covers everything that plan F does however accept for the part B deductible. The reason it is attractive is that premiums in some states are lower than medicare supplement plan f even if you add in the part b deductible.
Lastly the new kid on the block is medicare supplement plan n. It covers services just like plan G and also plan F. You would pay the part b deductible every year and you also may have to pay up to 20 dollars for doctor visits. However the premiums could be substantially lower than plan f. There is a great comparison between medicare supplement plan n vs plan f. Make sure to check with your agent to see what the best medicare supplement plan prices are in your particular state. Below we will take a look at how medicare insurance supplement companies price these medigap plans.
Insurance firms establish rates for Medigap policies in 1 of 3 methods:
Attained-Age Rating— The premium is based on your current age (the age you have “attained”) so your premium goes up as you get older. Premiums are low for younger buyers, but go up as you get older and can eventually become the most expensive. Premiums may also go up because of inflation and other factors.
Issue-Age Rating— The premium is based on the age you are when you buy (are “issued”) the Medigap policy. Premiums are lower for younger buyers and won’t change as you get older. Premiums may go up because of inflation and other factors.
Community-Rated The same monthly premium is charged to everyone who has the Medigap policy, regardless of age. Premiums are the same no matter how old you are. Premiums may go up because of inflation and other factors.
Sample Prices For Some Supplement Plans:
Connecticut- is a Community Rated State So all Enrollees get the same Rate Regardless of Age, Sex, Tobacco Use
Plan F Costs- $239.50 monthly
Plan G Costs- $207.00 monthly
Plan N Costs- $156.00 monthly
Florida- This would be for a Male in Florida who is 65 and a Non-Smoker (rates subject to change)
Plan F – $159.75
Plan N- $114.75
Plan F- $230.00
A Few Ways to Save Money on Medicare Supplement Plans Are the Following:
Medicare Supplement Program Enrollment
In most states, there is a “guarantee issue” or “open enrollment” period throughout these times:
Open Enrollment or Annual Enrollment- Oct 15-Dec 7th
Guarantee Issue Policies Must:
There are other qualifying conditions that one must meet to get into medicare guarantee issue policies. You can learn more below!
See more qualifying guarantee issue info here.
If you have had prior creditable coverage, such as an employer, another med supp, or medicare advantage plan, then pre-existing coverage may not be an issue however if you did not, the following may apply. While the insurer can not make you await your protection to begin if you get approved for a medicare supplement plan, it could have the ability to make you wait for coverage associated to a pre-existing problem.
A pre-existing condition is a condition you were diagnosed with or sought treatment for prior to the effective date of the policy. In many cases, the Medigap insurance provider could choose not to cover your out-of-pocket costs for this pre-existing illness for up to 6 months. This is called a “pre-existing condition waiting period.” After 6 months, the Medigap plan will cover the pre-existing problem. Protection for a pre-existing condition can just be excluded in a Medigap plan if the condition which was dealt with or detected within 6 months prior to the day the” existing condition waiting duration, the Medigap policy may certainly cover the condition that was excluded. Again please check with your insurance agent or the issuing medicare supplement company to make sure that your pre-existing condition will either be covered or when it will be covered
Thanks for checking out our articles about the best medicare supplement plans, I hope this helps in your decision making process. I hope tis article helps everyone reading this! If you would like to check out medicare plan n vs plan f we have done a complete break down of the plans!
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