Medicare Insurance Plans - Understanding The Differences

If you are turning 65 and will be eligible for Medicare, you should consider getting one of the Medicare insurance plans that are available to you. Very few people become eligible for Medicare and decide that Medicare Parts A and B are enough coverage. There are just to many holes in Medicare not to consider purchasing a Medigap policy or joining a Medicare Advantage plan.

Anyone who has gotten close to Medicare age knows, you are literally inundated with information mailed to you. The most important information is sent from Medicare. This unbiased information gives you an overview of your options. Publications such as Medicare and You and Choosing a Medigap policy: A Guide to Health Insurance for People with Medicare, include must-have information, but many people find the reading dry and boring.

Insurance companies will almost bury you with literature when you are about to turn 65. Just look at all the four color brochures in your mail box. Often, you get a high level overview, but not what you really want, clear language and an idea of cost.

Comparing Medicare insurance plans

Many people don't understand that a Medigap policy and a Medicare Advantage plan are two different types of insurance coverage.

Medigap

A Medigap policy (Medicare supplement) is the traditional type of plan that has been around since 1965. It's called Medigap because it fill the gaps left by Medicare. Medicare Part A requires you to pay a hospital deductible and co-pays for extended stays and Part B requires that you pay 20% of all covered outpatient charges. A Medigap policy will, to varying degrees, fill these gaps.

Medigap insurance is available as one of several standardized plans. Plans will be the same from one company to the next. When you first become eligible for Medicare, you have an open enrollment period that lasts six months from the first day of the month that you become eligible. During this time an insurance company cannot refuse you the opportunity to purchase any policy that they sell, no matter what pre-existing medical conditions you may have.

If the Medigap policy is affordable, this is the best time to purchase. Compare rates with several companies, knowing that coverage will be the same no matter which company you look at. Standardization makes comparing Medigap insurance policies easy.

If you choose a Medigap policy you will also need to purchase a stand alone Part D drug plan, because it is not included in this type of Medicare plan.

Medicare Advantage

Advantage plans are not Medicare supplements. But rather, you are receiving your benefits from an insurance company that is approved and contracted with CMS (The Centers for Medicare and Medicaid) to administer your Medicare. The idea behind this, is that a private insurance companies are more financially efficient than the federal government, and should be able to stretch the money allocated to give you more benefits.

Advantage plans do not fill the gaps, but rather give you set co-pays, co-insurance and deductibles that may control costs and limit your out-of-pocket expenses compared to Medicare. Advantage plans also often include Part D drug coverage, as well as many additional benefits not included in Medicare, such as dental,vision and hearing. Many people choose an Advantage plan because it will often have lower monthly premiums or no premiums at all.

Advantage plans also have an open enrollment period when you become Medicare eligible. Plans also have an annual enrollment period because companies contract for one calendar year at a time, and can change or discontinue plans each year.

Shopping for Medicare insurance plans

One of the most efficient ways of comparing Medicare insurance plans, is to do some research online. You can often shop for plans and get rates without having to leave your home. Another option would be to meet with a trusted insurance agent. If you choose to do this, make sure your agent represents several companies. Armed with some knowledge, you can avoid costly mistakes and compare the best Medicare insurance plans available.

What to Watch Out for in Medicare Supplement Coverage   Medicare Supplement Plan N - Smart Alternative To Medicare Advantage   How Can You Find Best Medicare Supplemental Insurance Plans?   Get Event Insurance Online   How Does a Medigap Policy Work?   A Guide To Medicare Supplemental Insurance   

New 2010 Modernized Medicare Supplement Plans

Medicare insurance is a health insurance program for citizens who are over 65 years old. it covers different types of treatments, doctors visits as well as hospitalization and many other medical related expenses apart from those that are incurred by care for the long term. It takes care of up to 80% and depends on a number of things such as the type of coverage the patient is under. There are times where people are not able to make co-payment in cash and therefore they opt for Medicare supplemental insurance that are available and managed by different companies but work with Medicare guidelines National Medicare supplements come with 12 options from which the clients can choose. Though they all have different types of terms and conditions, they contain the basic Medicare benefits. The difference is seen in the premium, as well as the expenses that the client will pay which vary from one company to the other.

Also known as Medigap, Medicare supplemental insurance is not available in other states and in others like Massachusetts, Minnesota and Wisconsin; it is very different from the others. The plan is divided into different policies as below

• Basic coverage plan A-F Part A policy covers for one extra year after the termination of Medicare Benefits. Part B is similar to Part A and comes with a deductible coverage for part A. Part C comes with extra coverage as compared to A and B which include coverage for part b deductible as well as skilled nurse care, emergency care when overseas and others.

Plan F comes with the basic coverage benefits and coverage for A and B deductible. It is a good option as it offers a high deductible option meaning that the premiums are lowered drastically. Plan G comes with basic coverage and is part A deductible. Other benefits include medical expenses overseas and at home recovery. It does not cover Part B deductible and preventative care although it is quite affordable.

• Plan K and L It comes with the benefit of an extra year after Medicare benefits is terminated, and additional coverage of 50% of hospice and cost sharing, part b deductible. Plan L is similar to K but instead of 50%, it covers for 75% of the clients expenses. These plans are good if the client is seeking lower premium.

• Plan E,H,I and J The modernized plan 2010 does not include the plans J,H,E,I starting in June but those who have the plan prior to June will have the option of keeping it if they want to. The companies will allow the users to change these plans to any new plan they want.

• Plan M and N These are new plans introduced in the Medicare insurance. it will feature an increase of out-of-pocket expenses in case of claims though the premiums will be lower. They do not come with Part B deductible or excess amount coverage.

What to Watch Out for in Medicare Supplement Coverage   Medicare Supplement Plan N - Smart Alternative To Medicare Advantage   How Can You Find Best Medicare Supplemental Insurance Plans?   Get Event Insurance Online   A Guide To Medicare Supplemental Insurance   How Does a Medigap Policy Work?