Compare Medicare Supplement Insurance Plans Costs

Plans To Supplement Medicare - Different Benefits - Different Costs

Medicare, the federal health insurance program, does not cover all of your medical expenses. As a result of Medicare deductibles and required co-payments you could end up having to pay out of your own savings.

A Medicare supplement insurance plan can help you cover these costs. When you become eligible for Medicare, it may be the primary means of paying for your medical expenses for the rest of your life. The more you understand about the benefits, the better prepared you and your family will be.

The more you understand about Medicare supplement insurance costs, the more you will be able to save. That's because the cost of Medigap policies can vary widely. There can be big differences in premiums that insurance companies charge for exactly the same coverage.

A designated Medicare supplement insurance professional who is a member of the Association can help you compare costs for supplemental Medicare insurance policies.

What is Medicare Supplement Insurance?

Medicare provides benefits for the most acute medical needs. However, it can still leave you with out-of-pocket expenses. Those expenses could be substantial if you experience a catastrophic illness or repeated hospitalization. Because of deductibles, coinsurance and medical expenses not covered by Medicare, most people may need supplemental health insurance to help pay for these expenses.

Medicare supplement insurance helps pay expenses not covered by Medicare, such as deductibles and coinsurance. However, non-covered charges will be the insured's responsibility. Policies that meet the definition of Medicare supplement insurance are clearly labeled, usually on the policy's front cover.

Federal Regulations for Medicare Supplement Insurance

Federal law in all but three states requires companies to standardize Medicare supplement insurance policies. Standardized plans must follow the model set of standard plans: A, B, C, D, F, F (high deductible), G, K, L, M and N. Plan A, a core benefit package, is available from all Medicare supplement insurers. Plans offered by companies must be the standardized models.

Massachusetts, Minnesota and Wisconsin require companies to sell benefit plans as defined by their state laws.

The following provisions apply to all states:

• 30-day Free Look – After you purchase Medicare supplemental insurance (Medigap), you have 30 days from the date you receive a policy to review it.
• If you decide to decline the policy within this period, the company must refund all the premium you paid.
• Open-enrollment Period – The best time to buy a Medicare supplement insurance policy is during the mandared open enrollment period. The open enrollment period lasts six months and begins on the first day of the month in which you are both age 65 or over and enrolled in Medicare Part B; or under age 65, with a disability or end-stage renal disease (except in CA) and enrolled in Medicare Part B.
• During the six-month open-enrollment period, an insurance company cannot deny you Medicare supplement insurance coverage or increase the premium for a policy because of past or present health problems.

Have You Looked Into Long Term Care Insurance?

Medicare pays little if any of the costs associated with long term health care.

That is why it is essential for all those considering Medicare Supplement Insurance to also have a plan for the risk of long term care.

For more free information, visit our sister organization the American Association for Long Term Care Insurance where you'll find information. Read two consumer guides previously included in issues of Kiplinger's Personal Finance magazine that explain simple ways to reduce long term care insurance costs.