MEDICARE SUPPLEMENTS
Basics:
- You must have both Medicare A & B. A red/white/blue Medicare card will be your proof of enrollment. (below).
- When the Part B effective date is activated you have a once in a lifetime Open Enrollment period countdown; meaning you can’t be denied Supplemental coverage…no matter what pre existing conditions prevail.
- Once this six - month period ends you must medically qualify to be covered. Don’t let this date pass you by.
- Medicare Supplements also called Medigap plans cover the “gaps” in original Medicare. It’ll pay for the deductibles, co-pays, coinsurance that Original Medicare doesn’t cover.
- For example, Original Medicare doesn’t cover the Hospital deductible; which is $1100 (2010)…the Medigap plans pay this deductible every time you enter the hospital.
- There are always some exceptions to the rule so counsel with a competent agent on these matters. (i.e. The disabled can only enroll in Plan A which doesn’t cover this deductible.)
- A Medigap policy has a monthly premium. Some plans require you to cover the annual Medicare Part B deductible ($155 in 2010); then the plan pays 100%.
- If you had medical treatment like cancer and the bill was $300,000…you’d only be responsible for the deductible + monthly premiums.
- At the Providers office show both cards: Medicare + Supplement. Medigap is definitely an excellent product to protect oneself from medical financial ruin.
ATTENTION: On June 2010 the Modernized Supplement Plans arrived which offer greater co-payments for the consumer in exchange for lower premiums; new plans K, L, M, N will add much diversification.
Protections:
- You’re guaranteed renewable and can never be cancelled; except for non-payment of premiums.
- The insurance companies cannot raise your rates on an individual basis; you’re basically in a risk pool of people.
- The healthier the risk pool of insured’s the more stable the rates over time.
- Some companies are very liberal in underwriting and hence have higher rates. An experienced agent knows the “mentality” of the companies.
Personal opinions:
- Medigap plans are the best products on the market.
- They give you the most freedoms in health care and every Medicare doctor must accept the plans.
- There is no referral to specialists.
- There is no “network” of doctors.
- Billing is electronic so no paper, no mess on your part.
- When your health fails and the best cardiologist or oncologist is essential…Medigap plans deliver!