Medicare Supplement Center

Seniors Review Health Insurance

At this time of year, many seniors review their current health insurance to see if a Medicare supplement policy would be a good idea.  Seniors that have retired and have insurance through their previous employer are finding out about changes to their health insurance.  Not all the changes are favorable.  Many include higher premiums and higher deductibles.  When the premiums and/or deductibles get too high, Medicare supplement policies combined with Part D coverage become attractive.  One important factor to consider before leaving group coverage is what you might be gaining or losing in RX benefits.  Many seniors with health insurance through previous employers still have very rich RX coverage that does not have a "hole" in the coverage.  A person should be very careful before giving this benefit up, especially if the individual is taking a lot of RXs.  A Medicare supplement policy also known as Medigap policy can be a very attractive alternative to consider at this time of year.

Time to Shop for a New Medicare Supplement Insurance?

November 15th is coming up and many seniors with Medicare supplement insurance believe that this is the time (November 15th - December 31st) they can change to another medicare supplement policy (medigap policy).  This is true and false.  True, you can look for and apply with another medicare supplement company between November 15th and December 31st.  False, if you thought this was the only time of the year you can change Medicare supplements.  Unlike Medicare Advantage Plans and Part D plans Medicare supplement insurance can be changed at any point during the year.  One of the easiest ways to shop for a new medigap policy is to request quotes online and let someone do the work for you.  This way you can compare Medicare supplement plans and medicare supplement quotes from several different companies and decide which one is the best fit.

2009 Medicare Part B Premium

Good news for Medicare recipients!  For the first time since 2000, the Medicare Part B premium will be the same in 2009 as the previous year for most seniors.  Individuals making $85,000 or less or couples making $170,000 or less will pay $96.40/month.  This is good news for seniors with Medicare supplement insurance since every dollar matters.  Having a Medicare supplemental policy combined with Medicare Part A and Part B is a great way for senior to insure their health.  Like almost everything else, premiums increase a little each year on an individual's Medicare supplemental policy so any cost savings helps.  In a few weeks it will be time to take a look at Part D coverage and hope that there is some savings available there for Medigap policyholders as well as all other seniors.

Mediare Part A and Part B Plus Medicare Supplement Insurance

Seniors may be concerned that once they get on Medicare their insurance coverage will decrease in benefits.  When you combine Medicare Part A and Part B with Medicare Supplement Insurance you will find great insurance coverage for your medical bills. For example, Medicare supplement coverage found on a Plan F covers all the Medicare Part A and Part B deductibles and the 20% of Medicare Part B charges not covered by Medicare (as well as 100% of all excess charges).  What does that leave the insured to pay?  Nothing if all the charges are approved by Medicare and the insured is going to a provider that accepts Medicare.  How can the coverage improve unless you were paid to go to the doctor or hospital!  The only piece missing is a Part D (prescription drug plan) to the Medicare and Medicare supplement coverage.

Seniors Reach Medicare Part D 'Doughnut Hole'

A Kaiser Family Foundation study released in August said that in 2007 about 3.4 million Americans enrolled in a Medicare Part D drug plan reached the doughnut hole.  The 3.4 represents 26% of the Medicare Part D enrollees in 2007.  Also, 22% of Medicare Part D enrollees stayed in the doughnut hole for the remaining part of the year while the remaining 4% reached the catastrophic level.  Many seniors combine Medicare Part A and Part B with Medicare supplement coverage for their health insurance and find the addition of a Part D plan very beneficial.  Medicare Part A and B combined with a Medicare supplement gives great flexibility in doctor and hospital selection.  Buying a Part D plan rather than a Medicare Advantage Plan with Part D built in gives the consumer the ability to choose a Part D plan that best fits their RX needs.

Medicare Supplements See Lower Rate Increases

Good news for Medicare supplement policyholders!  Aon Consulting Worldwide surveyed more than 70 leading health care insurers.  Part of the survey focused on Medicare supplement rate increases.  The result was that rates were projected to increase 7.3%.  This is good news since a year ago the rates were increasing 11.2%.  Rates can be expected to increase.  But there is a way to potentially lower your Medicare supplement rate.  How?  By shopping around.  Contact an agent, which can easily be done over the internet, and get current Medicare supplement quotes.  This way you can see if there is something more affordable with equivalent benefits.

Medicare Part D Premiums Increase in 2009

Many seniors have great health insurance coverage by combining Medicare Part A and Part B with a Medicare supplement plan and a Medicare Part D plan.  Like everything today, prices are on the rise for Medicare Part D plans in 2009.  The good news is that the Medicare Part D 2009 premiums are 37% lower than what was anticipated when Part D plans were introduced.  The average 2009 rate has increased to $28 per month.  This is $3 more than the 2008 average.  How can a senior keep costs down?  By checking with their doctor to see if a generics can replace brand name drugs and also by checking out the 2009 Part D plans to see if there is one that better fits their needs.  This can be done by talking to their pharmacist or using the Medicare website that has a tool allowing one to enter his or her RX information and then ranking the plans in the most cost effective order.

Medicare Supplements: How they work

In order to have a Medicare supplement, a person must also have coverage under Medicare Part A and Part B.  The Medicare supplement picks up where Medicare leaves off.  Medicare Part A (hospitalization) has a deductible and additional costs for extended hospital stays.  Part B has a deductible and then covers 80% of medical costs.  Medicare supplement coverage depends on which of the available plans you choose.

Medicare supplement coverage is preferred by many seniors because it allows them to go to any doctor or hospital that accepts Medicare (generally speaking) and and out of pocket costs are very small, especially if the Medicare supplement covers the Part A deductible.

Change Medicare Supplements Any Time of the Year

Medicare supplements can be changed during the year at any time.  Unlike Medicare Advantage Plans and Medicare Part D Plans which have can only be changed during certain times of the year, Medicare supplements do not have that kind of limitation.  If you have received a rate increase during the year or would like to shop around to see if you can get a different plan or less expensive plan you are always free to do so.  Be aware that insurance companies can underwrite.  You will probably be asked to complete an application including health questions, but for many people this is not difficult.  Even if you had a heart attack 5 years ago or had internal cancer 3 years ago, getting a new policy would generally not be a problem.

Future of Medicare Advantage Plans

Baucas Tackles Cuts in Subsidies for Medicare Advantage Montana Senator Max Baucas, Chairman of the U.S. Senate Finance Committee, wants to reduce funding of Medicare Advantage Plans.  Why?  Because a government study showed that insurance companies on average were being paid an additional 13% above the cost of traditional Medicare.  What would be the result of this?  There are several things that could happen.  One is that once the funding is reduced, insurance companies might withdraw from the Medicare Advantage market since it will become less profitable.  Another natural result would be higher premiums for Medicare Advantage insureds.  Premiums might be raised to offset the decrease in funding.  Lastly, benefits could be reduced.  Plan copayments and out-of-pocket maximums would be raised to move more responsibility toward the insureds.

Medicare Supplements are great products for seniors offering access to more doctors and hospitals in most cases than Medicare Advantage Plans and also lower out of pocket costs when receiving medical attention in many cases.   Medigap polices (Medicare Supplements) would become even more attractive if Medicare Advantage Plan funding was cut and can be considered as an alternative.