When making choices on Medicare and Medigap policies keep in mind that your decisions will have various effects on your finances. Often, Medicare and Medigap will cost you more than expected. To ensure that your premiums cost less, do your research on the numerous plans and their costs.
For instance, if you are looking to save money on a Medigap policy, then you want to stay alert for value added benefits. Value added benefits, in a Medigap policy, could include free access to various fitness facilities, hearing aids, eye exams and eye wear. Free services, like these, could save thousands of dollars a year. Such savings are important for seniors often struggling to get by on a limited income.
Many seniors miss out on these extra benefits. However, to find out about value added benefits ask what benefits are included with your policy. Do not assume that all Medigap policies have the same benefits or have any extra benefits at all, because they may not.
Remember to make it a point to find out what your Medigap policy covers. Additionally, find out what other benefits may be included that can save you money.
There are a number of health decisions that need to be made when you turn 65. It is important to not wait until the last minute to decide what policies you want. Waiting too long can result in you not receiving the coverage you need because you had to make a decision quickly about which policy to choose.
Take your time and start checking out various options for health insurance before you turn 65. Prepare a list of questions that you want to ask. Ask questions about what added benefits come with your policy. Ask what is and is not covered. Ask what would be best for your financial and health situation.
As you begin your research into healthcare coverage, work on a list of things that you need and want, and what you think will be the most beneficial to you. Furthermore, preparing helps narrow the field when you are faced with multiple choices when it comes to health care coverage. Health insurance is an important decision and you want to make the most beneficial decision.
Posted on Monday, September 18th, 2017. Filed under
Medicare.
When choosing Medicare supplement plans, also known as a Medigap, make sure to compare their costs. All Medigap plans are standardized, they offer the same coverage, but the costs will vary depending on the insurance company offering them.
The American Association for Medicare Supplement Insurance(AAMSI) offers an online database with the contact information for Medigap insurance agents. The database is great tool to assist you in finding knowledgeable agents who will help you compare the costs of Medigap policies. When speaking with an insurance agent find out if they only sell policies form one company or from multiple ones.
When purchasing a plan, always inquire about “household discounts.” However, it is important to realize that not every insurance company will see you as qualified for a discount. Lastly, remember that you do not have to keep the same insurance plan every year. Make sure to compare the available plans each year, as insurance rates are subject to change.
Posted on Friday, September 15th, 2017. Filed under
Medicare.
Often, when seniors are choosing their Medicare supplemental plans, or Medigap, they overlook the added no cost benefits. Obtaining such benefits can save seniors thousands of dollars each year. Directory
According to the American Association for Medicare Supplement Insurance (AAMSI) each year approximately 35 million people turn 65, thus becoming eligible for Medicare. Roughly 13.1 million people have Medigap. Some, but not all, of the Medigap policies now offer, no cost benefits. Seniors considering Medicare options should ask questions of their insurance agents about the various benefits attached to Medigap policies.
The added benefits programs offer free access to gyms and fitness centers, discounts on eyeglasses, eye exams, discounts on hearing aids and exams. The list of benefits is varied and each Medigap plan may have its own no cost benefits to entice seniors. The American Association for Medicare Supplement Insurance holds an online for consumers seeking to connect with Medicare agents. Remember, you need to ask about benefits or you may miss out.
Posted on Tuesday, September 12th, 2017. Filed under
Medicare.
Seniors living on a fixed income can feel frustrated with Medigap premium increases. Unexpected changes in Medigap rates can prove to be difficult to pay for. However, Medigap does offer multiple ways for seniors to save money and lower premiums.
When searching for ways to lower Medigap premiums, seniors can take advantage of household discounts. Check to see if your chosen Medigap carrier offers household discounts. For example, many carriers offer discounts if both spouses have a policy with the company. Savings of even five percent add up to a lot of money over the years. Furthermore, some companies offer this discount option to anyone living with another person, whether they are married or not even if that individual does not have a policy. It is worth asking about to see if you qualify to save money.
Another way to save money is to opt for Medigap Plan G. While Plan F has been the most popular, it is not always the best value. Plan G works just like Plan F, except that you pay the once-a-year Part B deductible ($183 in 2017). It is possible to find a Plan G that can save more than $183 in premiums and after you pay your deductible, you pocket the difference.
Shopping around for reasonably priced policies is the smartest way to go. And one area that you can likely save money is shopping for all broker prices in your market. This means that rather than just go with the big name, well-known insurance carriers (like United Healthcare or Cigna), ask about getting quotes from all carriers in your market area. Some lesser-known companies that offer good deals with the exact same policy coverage.
Recently high-deductible health plans have become trendy because they offer low premiums. What many people do not realize is that Medigap has a high-deductible health plan option — high Deductible Plan F. In this plan Medicare pays its share and you pay yours until you reach the plan deductible ($2,200 in 2017). Once you reach the deductible, the plan kicks in and pays 100 percent of your share for the remainder of the year. Premiums for this particular plan are exceedingly low, saving you hundreds of dollars a year.
Posted on Friday, September 8th, 2017. Filed under
Medicare.
New beneficiaries of Medicare often ask: Which type of coverage is best, Medigap or Medicare Advantage? Because each individual’s situation is different, it is important to note that what might be perfect for one person would not work for another. While Medicare Advantage plans, also called Part C Medicare, usually have lower premiums, Medigap plans are easier to comprehend.
In 2016 a report released by the Kaiser Family Foundation indicated that roughly 31 percent of Medicare beneficiaries decided to choose Medicare Advantage. Medicare Advantage plans have either an HMO or PPO network through which members access their healthcare. This allows Medicare Advantage to offer low premiums with some plans having $0 premiums. In choosing Medicare Advantage, members have access to a built-in Part D benefits.
Medicare Advantage plans may also include other attractive benefits, such as routine eye and dental care. But be aware that there are back-end costs in the Medicare Advantage plans. The costs may be minute if you are healthy but could escalate later if you require more care. Therefore, it is a good idea to take the time to find out what to expect out of your chosen Medicare Advantage plan.
The two important areas to examine closely in your Medicare Advantage plan are deductibles and copays. In order to find out more about deductibles for the plans that interest you, first check the Summary of Benefits to see what you are responsible for right up front. Medicare Advantage plans cover the same Part A and B services offered by Medicare, so a careful comparison is to your advantage.
Furthermore, Medicare Advantage members pay copays for medical care. Copays are very common for ER visits, lab work, ambulance trips, x-rays and other services. For example under one plan a beneficiary with a $15 copay at their primary care doctor’s office will pay a $45 copay to see a specialist. The copay amounts vary by plan, thus it is a good idea to research the plan you are choosing before signing up. To help you determine what may be best for you financially, try to calculate what you may spend in an average month on health care. Doing your research before you need to make choices should provide you with the best outcome.
Posted on Friday, September 1st, 2017. Filed under
Medicare.
This year will see one of the largest Social Security cost-of-living adjustment since 2012. However, Medicare premiums are said to increase as well.
Even though the Social Security COLA is not announced until October, inflation trends are pointing to an increase of roughly two percent. Previously, there was zero COLA in 2016 and only a 0.3 percent in 2017.
The cost-of-living adjustments are determined automatically through a formula tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). From 2013 through to 2015 annual COLA increases have averaged about 1.3 percent. Low COLAs are relatively rare, but 2018 will be an unusual year for retirees.
The last couple of years saw non-protected Medicare beneficiaries paying most of the cost of rising Part B premiums. In 2017 they are paying $134/monthly versus protected beneficiaries who are paying roughly $109/month.
For a retiree receiving the average Social Security benefit of $1,360 per month, a two percent increase would translate into $1387.20 per month. However, Medicare Part B premiums are taken off Social Security. Next year, the impact of Part B premium cost will vary based on the “hold harmless” Social Security provision.
The “hold harmless” law states that the Part B increases must not exceed the amount of the COLA — ensuring that net Social Security benefits do not decrease. This provision applies to roughly 70 percent of those enrolled in Medicare in both programs. The “hold harmless” provision does not include those who delayed filing for Social Security benefits, and possibly some state and federal government retirees. Well-to-do seniors are not protected under the “hold harmless” law.
When the 2018 COLA kicks in it will help spread Part B costs across the total Medicare program, in effect leveling the playing field where non-protected enrollees get lower premiums and protected enrollees will pay more.
Across the board it appears the COLA formula, even with the assistance of the “hold harmless” law, is not able to keep American seniors stable with ever increasing inflation. Rising health care costs threaten to dramatically eat into net Social Security benefits over time. Many seniors may find themselves working longer to delay the number of years of Medicare payments to be made.
Posted on Thursday, August 31st, 2017. Filed under
Medicare.
Medicare does not offer coverage for younger spouses or dependent children when the other spouse qualifies for Medicare. No one may receive Medicare benefits prior to the age of 65, unless eligible at a younger age due to a disability. What can be done to cover the younger spouse?
There are some options that may be considered for the younger spouse who is not ready to retire. Those options include planning on working past the retirement age of 65, if that is at all possible, which would permit the younger spouse to continue to be covered under an employer health insurance plan until they are eligible for Medicare.
Failing that option as a possibility, there may be employer options open, such as the employer providing retiree health benefits. This is something that would need to be checked with the benefits administrator along with asking whether or not your spouse may continue under their plan as well. In addition, if your spouse is employed, they may switch to their employer’s provided health care plan.
Individual health insurance through the Health Insurance Marketplace, or Obamacare, may be worth considering as well, especially since the proposed health care plan by the current White House administration did not pass, keeping the health care plan in place. Thus, insurance pricing is currently very competitive. The policies offer comprehensive health coverage, insurers cannot deny coverage or charge extra for pre-existing conditions.
An option to consider is COBRA. If you work for a firm that has 20 or more workers, once you make the change to Medicare, your younger spouse could stay with the company insurance for 18 to 36 months. While this is an expensive option, it may work for you depending on your circumstances. If the company has fewer than 20 workers, continued coverage may be available provided your particular state has what is referred to as “mini-COBRA.”
If your income is below the 400 percent poverty level ($64,080 for couples, $27,520 for individuals) then you may be able to receive a tax credit to reduce the amount you will have to pay for a health insurance policy.
For information on insurance plans in your state visit https://www.healthcare.gov/ or call the toll-free helpline at 800-318-2596.
Some Medicare beneficiaries, those that are fairly new to the program, are not aware that if they do not agree with a payment decision or coverage decision made by a Medicare health plan or by Medicare, that they might file an appeal.
There are five levels involved in the appeals process and a beneficiary can proceed up a level if the appeal is denied at a lower level. In order to prepare for an appeal, make sure to gather any and all information from your physician or healthcare practitioner.
If you need a quick decision because your health is in jeopardy, you may request a quicker decision. If your doctor or your Medicare plan agrees, a decision must be delivered within 72 hours.
Always be aware of what Medicare covers and does not cover and what options are available to you if you disagree with decisions made that may affect your health.
Many Medicare beneficiaries do not realize that once they sign up for Medicare they are eligible to get a number of free preventive services. Additionally, for new beneficiaries, Medicare Part B offers a “Welcome to Medicare” preventive visit during the first 12 months of enrollment. During this visit, your doctor will review your medical history and provide you with information regarding any services you may need. Beneficiaries who have had Medicare Part B coverage for over 12 months qualify for an annual wellness visit to update or get a personal health care plan from your doctor.
Medicare also provides its beneficiaries with other free preventive services. Some of these services are listed below:
A cardio-vascular screening every five years
Annual mammograms
Annual flu shots
Annual screenings for prostate cancer
Annual screenings for cervical cancer
Annual screenings for colorectal cancer
When you sign up for Medicare, take the time to find out what it offers. Preventive services are important for all beneficiaries to take advantage of as theses benefits lead healthier lives. Always read your health care insurance policies and if you have questions, speak to a health care insurance expert agent.
