What is a Medicare Supplement?

Health insurance never covers everything. Neither does Medicare. You will need to meet deductibles, copays and coinsurance. So, what is a Medicare Supplement? A Medicare Supplement is a type of health insurance sold by private insurers to cover the gaps in Medicare. This is why we refer to the plans as “Medigap Plans”.

Part B covers things like:

• Doctors visits
• MRI’s
• Outpatient surgeries
• Chemo & Radiation
• Ambulance Rides

Medigap picks up where Medicare leaves off. It serves to pay for the costs that normally Medicare would pass on to you. You must pay for these when accessing medically-approved services. If you don’t have retiree benefits or an employer health plan you will want to consider a Medigap plan. If you stay on original Medicare, paying 20% of those things adds up quickly.

Medigap plans or Medicare supplement plans give you freedom of access. Medicare has standardized Medigap plans and will pay on any approved Medicare service

Freedom of travel…you can see any provider in the country who contracts with Medicare

No referrals or networks

Predictable costs. On Plan G, you must meet a small annual deductible then your approved visits are covered. No doctor visit copays are owed.

You have a 6 month window to enroll once you have activated your Medicare Part B. So, don’t procrastinate. Contact the Social Security office today! If cost is an issue, look to see if a Medicare Advantage plan is right for you.

What is Not Covered by Medicare Supplement Plans?

Medicare Supplements only pay after Medicare has first paid its share. If Medicare approves a claim and pays the part that Medicare owes, it will forward the remainder of the bill to your Medicare Supplement.

Some things that are not covered by Medicare or your Medicare Supplement are:

• Routine dental, vision and hearing exams
• Hearing aids
• Eyeglasses or contacts
• Long-term care or custodial care
• Retail prescription drugs

Choosing a Medicare Supplement

Since Medigap plans by law are standardized, no matter the company you purchase your supplement from, you will know exactly which benefits you are purchasing. There are several factors which you will want to know about each insurance carrier before you choose your Supplement. They are standardized but there are a few really important things to consider before making your choice.

Rates – What is a Medicare Supplement premium? It’s the monthly rate that you pay to the insurance company that provides your Medicare Supplement coverage? Find out what premium each insurance carrier will charge you. Are the premiums low. Are they too low? Sometimes a new carrier will come into the area, low ball every other carrier, then raise their rates a year or two down the road.

Rate trend history – This is why you need to know why the rates are too low. Most policies will have an annual rate increase to keep up with medical inflation. What kind of rate increases has the carrier you are considering had over the last 3 years? Choose a carrier who has been in your area for a long time so you can gage the history of their premiums. Have they been steady? Are the rate increases significantly higher or lower than their competitors?

Financial ratings – A number of ratings companies dig into the financial stability of each insurance carrier. These companies provide information on the fiscal health of the insurer. We will only recommend A rated carriers to our clients. Consider this information when making your selection.

You have a 6-month window to enroll once you have activated your Medicare Part B. So, don’t procrastinate. Contact the Social Security office today! If cost is an issue, look to see if a Medicarhttps://hfcbenefits.com/what-is-medicare-advantage/e Advantage plan is right for you.

What in the world do all those terms mean?

I don’t know about you, but I hate to go and look up a bunch of words. We are making this easy for you. Let’s look at some of what those Medicare words or phrases mean.

Medicare Part A coinsurance – all Medigap plans offer this benefit. It covers the very expensive daily hospital copays that you begin accruing after your 60th day in the hospital.

Medicare Part B coinsurance or copayment – every Supplement also covers this benefit, which is one of the most important. Since Medicare only covers 80% of your Part B outpatient expenses, this benefit is what pays the other 20% for you. This can be crucial for high-ticket items like cancer treatments or dialysis.

Blood (First 3 pints) – this benefit is on all plans and pays for the first 3 pints of blood in a blood transfusion. Medicare only pays for the 4th pint and above. Blood is very expensive, so this is a good benefit.

Part A Hospice care coinsurance or copayment – Supplements pay for the parts of hospice that Medicare doesn’t under this benefit.

Skilled Nursing Facility coinsurance – Medicare allows for 100 days of skilled nursing facility (SNF) care after you have been in a hospital and need nursing care while you recover. Be aware of this! Medicare only pays for the first 20 days. A policy with SNF coverage will pay for the other 80 days.

Medicare Part A deductible – the 2021 Part A deductible is $1,484. You can pay this more than once a year if, for example, you have two inpatient hospital stays more than 60 days apart.

Medicare Part B deductible – in 2021, the Part B deductible is $203/year. You will pay the Part B deductible once per year for services such as doctor’s visits and lab-work.

Medicare Part B excess charges – Medicare providers can either accept Medicare’s assigned rates for each service or, if they choose, they can charge you an excess charge. This charge can be up to 15% above the assigned rate. It can be pricey for items like diagnostic imaging or surgery. To limit this surprise or unplanned expense, choose a Medicare Supplement that covers this expense.

Foreign travel emergency – Since Medicare is a U.S. health insurance program, it does not offer you coverage outside our country. Some Medicare Supplements include a foreign travel benefit. It will pay 80% of your expenses up to $50,000 after a small deductible.

Give our office a call at 803.286.1161 to help you with making the right financial decision in your retirement.