UNDERSTANDING MEDICARE SUPPLEMENTS
Over time prices for everything go up, everyone knows this and accept it as a fact of life. With this in mind doesn’t it make common sense to see what your options you have on your Medicare supplement? If you can save money for the same coverage why not consider it? So the purpose of this article is to show you your options and how you might be able to save hundreds maybe thousands of dollars annually on your supplement costs. Maybe the plan you bought at age 65 has reached a point to where it’s no longer affordable, would you consider changing companies for the same benefits? Maybe you should. Read below and see if any of tis makes sense.
Medicare Supplement Basics
Here are the basics. Medicare supplement plans pay for the shortfall that Medicare doesn’t pay. This includes co-payments, co-insurance, and deductibles. Medicare will pay it’s share of approved costs and the shortfall is paid by a supplement policy. Depending on which plan you have determines how much of that shortfall your supplement will pay. Let’s go over each plan so that you will understand your options.
This is the “Cadillac” plan. There are no co-pays or deductibles. Alot of agents like to sell this policy but you definitely pay more and the propensity for higher percentage increases is high.
Same coverage as plan f but you are responsible for the annual deductible of $183 at the time of this writing. Much lower premiums and the increase percentages are much much lower.
The deductible of $183 you pay plus any co-payments charged that medicare does not pay for. Of course this plan is cheaper but can cost more in the long run.
SO WHICH ONE IS BEST?
There is no right or wrong answer but in most cases the plan G is far and away the best choice for most people. Some people will find plan N will work for them best because they are healthy BUT if you encounter health problems down the road and decide to switch to a plan F or G you may not be able to do it because of health issues. When you first signed up for your supplement plan it was mandatory that you be covered, you couldn’t be denied for pre-existing conditions but that’s not true later after you’ve been on Medicare so be wise and consider changing while you’re healthy.
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Plan F and Plan G allow you to know exactly what your doctor and hospital costs will be, easily budgeted for. Plan N is another story. The cost will vary because it’s a “pay as you go plan” the deductible is paid for every office visit.
switching plans is not an easy choice so choose wisely. For a thorough evaluation please consider giving us a call, it’s a no pressure environment so call today.