Site Last Updated on: February 03, 2012
Medicare Supplement FAQ -
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Medicare Explained
Medicare is part of the Social Security system designed to provide national healthcare to folks over the age of 65 and to people under the age of 65 who have been on social security disability for at least 2 years or have been diagnosed with end stage renal disease. Medicare was designed to cover the majority of recipients’ healthcare costs but still leaves them exposed to deductibles, coinsurance, copays, and excess charges. These out-of-pocket expenses are often referred to as “gaps in coverage”.
How Does Medicare Parts A & B Work?
Medicare Part A, also known as hospital coverage, assists in covering the financial expenses associated with your overnight stay in a medical facility. After meeting a deductible in excess of $1000 per benefit period, certain medical expenses are covered for the first 60 days. If a recipient finds themselves in the hospital for longer than 60 days they will be subject to increasingly expensive copays ($283 or more per day). As you can see, although Medicare covers hospital stays fairly well, if you only have Medicare parts A & B a hospital stay can get very expensive.
Medicare Part B, also known as outpatient coverage, covers things like doctor’s visits, outpatient surgery, labwork, x-rays … really any Medicare-approved treatment you may receive that does not require you to stay in a medical facility overnight. You may also find that some part B services are used while in a hospital setting. Part B has a relatively small annual deductible but only covers 80% of medical expenses after the deductible is met. If you find yourself needing an ongoing expensive treatment (ie cancer or diabetes treatments) you could pay quite a bit out-of-pocket.
What is Medicare Supplement Insurance?
Medicare supplement insurance is private health insurance a Medicare recipient can buy to cover all, or most, of the gaps in Medicare part A & B coverage. For this reason it is also known “Medigap”. Medicare supplement plans are standardized by federal and state regulations intended to protect you. A Medicare supplement policy must clearly identify it as a Medicare supplement insurance plan. It is, unfortunately, not too uncommon for insurance agents to try to pass a Medicare Advantage plan off as a Medicare supplement plan.
If you’re able to afford a Medicare supplement plan it can make a lot of sense to own one. One of the biggest threats to retirement funds is medical expenses. Because these Medigap plans cover most, if not all, of the gaps in Medicare you can rest assured that you’re protecting yourself from one of the biggest threats to enjoying a comfortable retirement.
Medicare supplement plans also provide coverage above and beyond Medicare’s limits, including Foreign Travel Emergency and coverage for excess number of days in the hospital.
Do I Need a Medicare Supplement Policy?
Medicare supplement insurance is not an absolute necessity and is elective and privately-owned coverage. Buying a Medicare supplement policy may end up being similar to buying many other types of insurance in that you may not come out ahead financially when considering the costs versus whatever it might cover when you own it; however, it’s not intended typically to allow you to come out ahead financially as it is designed to protect you from financial devastation due to major medical bills.
Where Can I Find Medicare Supplement Quotes?
Although there are a number of sites that claim to offer rates online you’ll often find that they don’t and just let you know a Medicare supplement agent would be calling you shortly to go over your options. GoMedigap is one of the few agencies that actually provide rates online to allow you look at the prices from several companies. You can get Medicare supplement quotes by filling the form at the top of this page. Although you’ll find rates from such companies ad Blue Cross Blue Shield, Mutual of Omaha, and many others, you’ll find that such companies as AARP (UnitedHealthCare) do not allow us to show you their rates online. To get rates from several other companies and ensure you’re getting absolutely the best rate you can call one of our Medicare supplement agents toll-free at (866) 894-3258.
What’s the Difference Between a Medicare Supplement and Medicare Advantage?
Although many people want to compare Medicare supplements to Medicare Advantage they are two completely different types of coverage.
Medicare Advantage plans are what many doctors will call “Medicare Replacement” or “Medicare Alternative” and it really is a better name for it as it’s more descriptive. This type of plan replaces regular Medicare and is intended to be “privatized” Medicare that is “as good or better than Medicare”. While these plans tend to cost less than getting a Medicare supplement and a part D they can actually get pretty expensive. You’ll have to continue to pay your Medicare part B premium and then pay the premium for the plan, if there is one, and copays, deductibles, coinsurance, for various medical services. There also tend to be some limitations on some of the ancillary services such as home health care and durable medical equipment. These plans also tend to have Medicare part D drug plans included but are often more limited than what you might find from a stand-alone part D drug plan. Probably one of the most unappealing aspects of owning a Medicare Advantage plan vs a Medicare Supplement plan is that when you own a Medicare Advantage plan you no longer have Traditional Medicare and have to see doctors within the private insurance companies network. You will often times find this to be much more limited than you hoped for … and sometimes not until it’s too late. You’ll often also find that some of the premier specialty medical offices and hospitals do not take Medicare advantage plans … or maybe not yours.
Medicare supplement plans are different in that they supplement traditional Medicare and do not replace it. So, you continue to enjoy the benefits of regular Medicare including the vast network of doctors and hospitals which accept traditional Medicare. You are also typically exposed to fewer deductible, coinsurance, and copays. You will tend to pay more for a Medicare supplement plan and a stand-alone Part D drug plan but you will find the ease of use and amount of coverage to be well worth the additional investment. Often times people will feel that a Medicare Advantage plan makes sense for them when they first become eligible for Medicare because they’re healthy and won’t use it much anyways. This could be a big mistake down the road as you may miss out on your ability to be guaranteed issue into a Medicare supplement. So many people, unfortunately, lack the foresight to understand that if and when they come down with a serious medical condition they may have to qualify medically for a Medicare supplement and, depending on the condition, often times will not be able to get coverage and will have to stay with their Medicare Advantage plan.
As a general rule of thumb, you’ll sacrifice convenience and coverage for a lower monthly premium with a Medicare Advantage plan. Medicare supplements, although typically more costly, provide much better access to doctors and much better benefits leading to reduced financial exposure. If you can afford it get the Medicare supplement insurance. You’ll eventually be glad you did.
When Can I Buy or Change a Medicare Supplement?
Unlike Medicare Advantage or Medicare Part D plans, there are no lock-in or lock-out periods for Medicare supplements. So, you can apply for coverage at any time throughout the year. You will find in certain cases that you may be in a guaranteed situation. More often than not, however, you will need to pass a medical underwriting review. This review tends to just be medical questions and maybe a check on your prescriptions and medical history. There is a possibility that if you’re currently dealing with a serious medical condition or have within the past couple of years that you might not qualify for coverage with the company you applied with. It’s important to work with a good agent, such as the agents at GoMedigap, who understands the underwriting requirements of the various companies to determine if you likely qualify for coverage.
Why Are There Big Differences in What Different Companies Charge for the Same Medicare Supplement Plan?
As you probably know by now, Medicare supplement plans are completely standardized from company to company. They have plan letters which indicate their benefits. As an example, Medicare supplement plan F, which is the most popular Medicare supplement because it covers all the gaps in Medicare, works the same whether you buy it from AARP (UnitedHealthCare), Blue Cross Blue Shield, Mutual of Omaha, or any other company. As you’re shopping for plan F you might be confused once you start to see the big difference in rates for plan F from the different companies.
You might initially think, because we’re trained to do so, that the more expensive plans must have better benefits or better doctor’s networks or have better customer service or may be better at paying claims. None of this is true. They will all work identically in regards to all of the above except maybe customer service.
However, don’t think that the companies that charge more necessarily will provide better service.
So, why the big difference in rates? A lot of it has to do with claims experience and how long the company has been offering Medicare supplement insurance in the state. The newer companies to the state tend to have the lower rates. There are many companies that have been around for decades that only recently started offering Medicare supplement insurance in your state. It doesn’t mean they’re not a good company or not experienced or are going to provide poorer service.
Once you’ve decided which Medicare supplement plan you want you really should just go with the company that provides the best combination of rates, AM Best rating, and overall comfort level for you. If you just made your decision based on rates you should be fine as well.
I know it sounds amazingly simple; however, the government, over decades of working on it, has made it this simple for you.
You can review rates from several top providers right on this website or by calling toll-free and speaking with one of our agents at (866) 894-3258.
Medicare is part of the Social Security system designed to provide national healthcare to folks over the age of 65 and to people under the age of 65 who have been on social security disability for at least 2 years or have been diagnosed with end stage renal disease. Medicare was designed to cover the majority of recipients’ healthcare costs but still leaves them exposed to deductibles, coinsurance, copays, and excess charges. These out-of-pocket expenses are often referred to as “gaps in coverage”.
How Does Medicare Parts A & B Work?
Medicare Part A, also known as hospital coverage, assists in covering the financial expenses associated with your overnight stay in a medical facility. After meeting a deductible in excess of $1000 per benefit period, certain medical expenses are covered for the first 60 days. If a recipient finds themselves in the hospital for longer than 60 days they will be subject to increasingly expensive copays ($283 or more per day). As you can see, although Medicare covers hospital stays fairly well, if you only have Medicare parts A & B a hospital stay can get very expensive.
Medicare Part B, also known as outpatient coverage, covers things like doctor’s visits, outpatient surgery, labwork, x-rays … really any Medicare-approved treatment you may receive that does not require you to stay in a medical facility overnight. You may also find that some part B services are used while in a hospital setting. Part B has a relatively small annual deductible but only covers 80% of medical expenses after the deductible is met. If you find yourself needing an ongoing expensive treatment (ie cancer or diabetes treatments) you could pay quite a bit out-of-pocket.
What is Medicare Supplement Insurance?
Medicare supplement insurance is private health insurance a Medicare recipient can buy to cover all, or most, of the gaps in Medicare part A & B coverage. For this reason it is also known “Medigap”. Medicare supplement plans are standardized by federal and state regulations intended to protect you. A Medicare supplement policy must clearly identify it as a Medicare supplement insurance plan. It is, unfortunately, not too uncommon for insurance agents to try to pass a Medicare Advantage plan off as a Medicare supplement plan.
If you’re able to afford a Medicare supplement plan it can make a lot of sense to own one. One of the biggest threats to retirement funds is medical expenses. Because these Medigap plans cover most, if not all, of the gaps in Medicare you can rest assured that you’re protecting yourself from one of the biggest threats to enjoying a comfortable retirement.
Medicare supplement plans also provide coverage above and beyond Medicare’s limits, including Foreign Travel Emergency and coverage for excess number of days in the hospital.
Do I Need a Medicare Supplement Policy?
Medicare supplement insurance is not an absolute necessity and is elective and privately-owned coverage. Buying a Medicare supplement policy may end up being similar to buying many other types of insurance in that you may not come out ahead financially when considering the costs versus whatever it might cover when you own it; however, it’s not intended typically to allow you to come out ahead financially as it is designed to protect you from financial devastation due to major medical bills.
Where Can I Find Medicare Supplement Quotes?
Although there are a number of sites that claim to offer rates online you’ll often find that they don’t and just let you know a Medicare supplement agent would be calling you shortly to go over your options. GoMedigap is one of the few agencies that actually provide rates online to allow you look at the prices from several companies. You can get Medicare supplement quotes by filling the form at the top of this page. Although you’ll find rates from such companies ad Blue Cross Blue Shield, Mutual of Omaha, and many others, you’ll find that such companies as AARP (UnitedHealthCare) do not allow us to show you their rates online. To get rates from several other companies and ensure you’re getting absolutely the best rate you can call one of our Medicare supplement agents toll-free at (866) 894-3258.
What’s the Difference Between a Medicare Supplement and Medicare Advantage?
Although many people want to compare Medicare supplements to Medicare Advantage they are two completely different types of coverage.
Medicare Advantage plans are what many doctors will call “Medicare Replacement” or “Medicare Alternative” and it really is a better name for it as it’s more descriptive. This type of plan replaces regular Medicare and is intended to be “privatized” Medicare that is “as good or better than Medicare”. While these plans tend to cost less than getting a Medicare supplement and a part D they can actually get pretty expensive. You’ll have to continue to pay your Medicare part B premium and then pay the premium for the plan, if there is one, and copays, deductibles, coinsurance, for various medical services. There also tend to be some limitations on some of the ancillary services such as home health care and durable medical equipment. These plans also tend to have Medicare part D drug plans included but are often more limited than what you might find from a stand-alone part D drug plan. Probably one of the most unappealing aspects of owning a Medicare Advantage plan vs a Medicare Supplement plan is that when you own a Medicare Advantage plan you no longer have Traditional Medicare and have to see doctors within the private insurance companies network. You will often times find this to be much more limited than you hoped for … and sometimes not until it’s too late. You’ll often also find that some of the premier specialty medical offices and hospitals do not take Medicare advantage plans … or maybe not yours.
Medicare supplement plans are different in that they supplement traditional Medicare and do not replace it. So, you continue to enjoy the benefits of regular Medicare including the vast network of doctors and hospitals which accept traditional Medicare. You are also typically exposed to fewer deductible, coinsurance, and copays. You will tend to pay more for a Medicare supplement plan and a stand-alone Part D drug plan but you will find the ease of use and amount of coverage to be well worth the additional investment. Often times people will feel that a Medicare Advantage plan makes sense for them when they first become eligible for Medicare because they’re healthy and won’t use it much anyways. This could be a big mistake down the road as you may miss out on your ability to be guaranteed issue into a Medicare supplement. So many people, unfortunately, lack the foresight to understand that if and when they come down with a serious medical condition they may have to qualify medically for a Medicare supplement and, depending on the condition, often times will not be able to get coverage and will have to stay with their Medicare Advantage plan.
As a general rule of thumb, you’ll sacrifice convenience and coverage for a lower monthly premium with a Medicare Advantage plan. Medicare supplements, although typically more costly, provide much better access to doctors and much better benefits leading to reduced financial exposure. If you can afford it get the Medicare supplement insurance. You’ll eventually be glad you did.
When Can I Buy or Change a Medicare Supplement?
Unlike Medicare Advantage or Medicare Part D plans, there are no lock-in or lock-out periods for Medicare supplements. So, you can apply for coverage at any time throughout the year. You will find in certain cases that you may be in a guaranteed situation. More often than not, however, you will need to pass a medical underwriting review. This review tends to just be medical questions and maybe a check on your prescriptions and medical history. There is a possibility that if you’re currently dealing with a serious medical condition or have within the past couple of years that you might not qualify for coverage with the company you applied with. It’s important to work with a good agent, such as the agents at GoMedigap, who understands the underwriting requirements of the various companies to determine if you likely qualify for coverage.
Why Are There Big Differences in What Different Companies Charge for the Same Medicare Supplement Plan?
As you probably know by now, Medicare supplement plans are completely standardized from company to company. They have plan letters which indicate their benefits. As an example, Medicare supplement plan F, which is the most popular Medicare supplement because it covers all the gaps in Medicare, works the same whether you buy it from AARP (UnitedHealthCare), Blue Cross Blue Shield, Mutual of Omaha, or any other company. As you’re shopping for plan F you might be confused once you start to see the big difference in rates for plan F from the different companies.
You might initially think, because we’re trained to do so, that the more expensive plans must have better benefits or better doctor’s networks or have better customer service or may be better at paying claims. None of this is true. They will all work identically in regards to all of the above except maybe customer service.
However, don’t think that the companies that charge more necessarily will provide better service.
So, why the big difference in rates? A lot of it has to do with claims experience and how long the company has been offering Medicare supplement insurance in the state. The newer companies to the state tend to have the lower rates. There are many companies that have been around for decades that only recently started offering Medicare supplement insurance in your state. It doesn’t mean they’re not a good company or not experienced or are going to provide poorer service.
Once you’ve decided which Medicare supplement plan you want you really should just go with the company that provides the best combination of rates, AM Best rating, and overall comfort level for you. If you just made your decision based on rates you should be fine as well.
I know it sounds amazingly simple; however, the government, over decades of working on it, has made it this simple for you.
You can review rates from several top providers right on this website or by calling toll-free and speaking with one of our agents at (866) 894-3258.
Medicare Supplement Insurance | Medicare Supplemental Insurance | Medicare Supplement Plan F | Medicare Supplement Rates | Medicare Supplements