Everything You Need to Know About Medicare Supplemental Plans

Medicare Supplement Plans, also known as

Medigap, may perhaps be considered as one of the

essentials every boomer needs to have for their

desired future. After all, these insurance policies

offer coverage required to secure both a person’s

health and wealth retirement needs.

We’ve compiled handy information about Medigap

policies below. Please do use this page as a

reference for all your Medigap inquiries.

Additionally, we’ll make sure to update details

here, as soon as new information comes our way.

Currently, we are referring to Medicare

Supplement Costs 2017 for this post.

I. What are Medicare Supplement Plans?

Medigap policies help pay the “gaps” (out-of-pocket

expenses such as copayments, deductibles, and

coinsurance fees) not covered by Original Medicare

Plans (composed of Medicare Part A and Part B).

Additionally, some Medicare Supplemental Plans

provide extra coverage not offered by Original

Medicare Plans (a particular benefit of note is foreign

travel coverage).

Private insurance companies sell Medicare

Supplemental Policies. As such, applicants have the

advantage to choose a provider that both provides

quality service and affordable policy options as

well.Also, private insurance companies may also offer

additional benefits not provided by others.

II. Types of Medicare Supplement Plans

There are ten standardized Medigap policies to choose from, labeled as Plan A to Plan N respectively.

Please take note that Medigap Plan E, H, I, and J are already discontinued.

Medigap plans differ in terms of the amount of coverage and extra benefits offered. However, each plan

provides these basics:

Coverage for the first three pints of blood

Coverage for Medicare Part A coinsurance fees

Coverage for Medicare Part A copayments (hospice care)

Coverage for Medicare Part B coinsurance costs or copayments

A high-deductible plan is offered in some states. If you opt for this option, you must pay for Medicare-

covered costs (deductibles, coinsurance, and copayments) up to a deductible amount before the policy

pays for anything.

Learn more about the standardized Medicare Supplemental Plans with our chart here.

III. Medicare Open Enrollment Period The best time to purchase a Medicare Supplement Plan is during the Open Enrollment Period (OEP). The OEP is a six-month timeframe that begins when you first turn 65 and are enrolled in Medicare Part B as well. During the OEP, a private insurance company cannot turn down a Medigap application (guaranteed issue), even if an applicant has health conditions (based on medications or pre-existing illnesses). Applicants will not also go through a medical underwriting process during this period, nor will be charged additional or higher premiums. The OEP cannot be delayed or replaced. Consequently, enrolling in a Medicare Supplemental Plan

outside the timeframe may mean higher premiums and undergoing a stricter screening process.

IV. How Much is Supplemental Insurance for Medicare?

Private insurance companies set premium prices for Medicare Supplemental Plans. Prices vary per

company and follow a “rating” system:

Community-Rated –charges everyone in a given area the same rate, regardless of one’s age.

Issue-Age-Rated – charges a rate depending on how old an applicant purchases a policy, but

price doesn’t scale as the policyholder ages.

Attained-Age-Rated – cheaper at age 65, but prices scale as a policyholder ages.

There are other factors to consider that affect Medicare Supplemental costs. As mentioned in the Open

Enrollment Period point above, purchasing a plan during the OEP means paying for affordable

premiums. Depending as well with the private insurance company, discounts for women, married

couples, and non-smokers may be available.

V. How to Choose a Medicare Supplement Plan? In order to select a Medigap plan that will best suit your needs, consider these factors first:

1. Health Status

Identify your family medical history to choose a plan that will address your current and potential

medical needs. If you have any pre-existing medical conditions, apply during the OEP to qualify

for a plan (and to avoid higher premium charges).

2. Capability to Pay Premiums

Consider as well your spending power. Medicare Supplemental Plans differ in coverage and

premium prices. As much as you’d want a plan that will provide you with lots of benefits, if you

can’t pay for premiums, then it’ll lead to more problems for you to face in the future.

3. Drug Coverage

Medicare Supplemental Plans do not cover prescription drugs. If you require prescription

medication, consider purchasing a separate Medicare Part D drug policy for additional coverage.

4. Planned Retirement Activities

If you plan to travel during the golden years, purchase a Medigap Plan that offers foreign travel

coverage.

5. Location

Certain states, such as Massachusetts, Wisconsin, and Minnesota, provide a different set of

standardized Medicare Supplemental policies to choose from. Make sure to ask the private

insurance company you’re purchasing a plan from for more details.

6. Compare and Seek Advice

Learn more about each plan first before making a purchase. Additionally, request for both

quotes and advice from multiple insurance agents – the option to shop around for a policy is

one of the major benefits that Medigap provides for applicants.

VI. What Else Should I Know? Private insurance companies may still be able to delay coverage for certain applicants, mainly because of pre-existing medical conditions (even during the OEP). Most private insurance companies have a pre-existing medical condition waiting period, which states that out-of-pocket expenses will only be covered after a certain period of time. This period is usually up to six months. Additionally, private insurers can only delay coverage if an applicant’s condition was treated or diagnosed within the stated waiting period. However, there are ways to avoid or shorten the pre-existing medical condition waiting period. You

must meet all of the following points:

For starters, enroll during the OEP to bypass medical underwriting procedure (do take note that

the private insurer you are purchasing from must have policies with guaranteed issue rights).

Another is when you are replacing creditable health coverage.

You must not have had a break in coverage for more than 63 days.

And lastly, you’ve had at least six months of continuous creditable coverage.

More About Guaranteed-Issue Rights There are other ways to secure guaranteed-issue rights when purchasing supplements for Medicare:

If the private insurance company you’ve purchased a Medicare Supplemental Plan from goes

bankrupt or has provided you misleading information.

If your Medigap coverage ends without your consent.

If you have enrolled in an employer-sponsored Original Medicare group plan, and the employer

coverage is ending.

If you dropped your Medigap Plan and purchased a Medicare Advantage plan, but changed your

mind during the first year and reverted back to an Original Medicare Plan.

If you are enrolled in a Medicare Advantage plan and transfer or move out of the plan’s

coverage or service area.

If you are enrolled in a Medicare Advantage plan and the coverage leaves the Medicare

program.

If you are enrolled in a Medicare Advantage plan when you are first eligible for it (when you

turned 65), but changed your mind during the first year and reverted back to an Original

Medicare Plan.

Download the Medigap Checklist and you will also get "Reasons Why Medigap is

Worth It"

BONUS: The Matter of Relationships We’d also like to point out the connection of Medicare Supplemental Plans and boomer relationships. Although Medigap coverage is solely for an individual, purchasing a plan may prove to be a fruitful experience for the policyholder and his or her significant other and family alike. One of our previous posts, How Insurance Can Help Address Relationship Problems, tackled the links

between Medigap and boomer relationships. Here are some takeaways that can help you see how

beneficial purchasing a policy is:

Stronger Relationships = Brighter Future

Individuals in the baby boom generation are more likely to experience social isolation during the twilight

years. And for some boomers, solitude may be a distressing experience to be in, which may lead to

further conditions such as depression or anxiety. Rubbing more salt to the injury, facing a future alone

may mean both emotional and financial distress.

Purchasing Medicare Supplements may help not only in the financial aspect of a boomer couple’s

problems but their bond as well. Granted that money talks may lead to conflict, but offering a solution

such as Medigap may be a solution worth having on the plate. A hidden benefit, perhaps, but Medigap

can help in keeping relationships healthy during the golden years.

Health and Wealth Coverage

According to a survey conducted by the Insured Retirement Institute last year, 45% of its boomer

respondents haven’t set aside funds for their retirement at all. And with divorce rates (which leads to

social isolation) on the rise as well, retirement health and wealth issues are at risk.

A Medigap policy may ensure boomers that their assets are properly secured. Couples can have the

peace of mind they deserve during retirement. With the gaps capable of depleting nest eggs in a fast

manner, boomer couples need all the help they can get to secure their savings – and relationship – and

enjoy a comfortable life together.

Stay tuned for more Medicare Supplemental information from us. We’ll be constantly updating our

posts, so please do expect more news from us. Also, please let us know if you have any suggestions or

feedback about our articles. Share them with us in the comments section below.

About FreeMedSuppQuotes

FreeMedSuppQuotes, a reliable Medicare Supplement insurance agency, caters to individuals by providing a platform that can allow them to acquire Medicare coverage easily. From concise explanations of concepts that could otherwise be confusing to

access to free Medicare Supplement insurance plan quotes with competitive rates in the market, this site provides its visitors an avenue to obtain the coverage that could be suitable to their medical needs and requirements. 1150 Corporate Office Dr. Suite 220 Milford, MI 48381 Phone: (800) 821-9580 Ext. 1250 Fax: (248) 676-0713 http://freemedsuppquotes.com/