Are You Penny-Wise, Pound-Foolish When It Comes to Deciding on Medicare Supplement Insurance?

How not purchasing a Medigap Plan can can be a penny-wise, pound-foolish decision.
What does this expression from three centuries ago mean?
Does it still relate to modern life?
How can you apply it when considering your Medicare Supplement Insurance options?
The definition of penny-wise is: unwise thrift.
The whole proverb is: Penny wise-and pound foolish, like the man who lost his horse from his penny wisdom in saving the expense of shoeing it a fresh when one of its shoes was loose.
Source: Dictionary of Phrase and Fable, E. Cobham Brewer, 1894
There is no doubt about it. Times are tough right now.Really tough and looking like they're going to get even tougher. Times are especially tough if you are over 65 and living on a fixed income.
If part of your income is dependent on interest from investments, you may be living on reduced income due to low interest rates.
If you depend on Social Security for all or part of your income, the lack of COLA increases for two years in a row reads like loss of income.
Rises in costs for must have items like food, fuel, utilities and insurance don't stop or slow because you didn't get a raise in your SS this year.
These are harsh realities. When you are facing reduced income and rising prices the natural and proper impulse is to cut back on non-essentials.
We try to trim spending where we can.
A dangerous trend is emerging. The tendency to view Medicare Supplement Insurance as a non-essential expense.
The cost of Medical care increases 6%-10% per year and that train is NOT slowing down. Just imagine 20% of all outpatient medical costs for even a common procedure like a knee replacement. The average total cost for a total knee is 45K-70K. Part A will cover your room and board for a semi-private room after a $1132 deductible.
Your surgery fees,doctor visits, cane, walker, commode, therapy visits and more are all subject to the 80/20 co-insurance under Medicare Part B.
Let's crunch some numbers.
The average cost for day of room, board and care in a hospital is $4,350.The average hospital stay for the surgery is 3-5 days. Let's use 4 days for our figures. $4,350X 4 days is $17,400. That is your Part A expenses. Medicare will cover all of it after you pay an $1132 deductible.We will subtract the $1132 from the $17,400 to give us a total of $16,268 that is covered by Medicare Part A.
Let's say you shop well and you find yourself on the mid range cost wise for the surgery. Let's use $55,000. If we subtract the $16,268 that Medicare Part A covered from the total cost of $55,000 we are left with $38,472 in Part A deductible and Part B expenses and at least 20% of that will be yours. If you consider that you will pay the deductibles right off the bat $1132+$162=$1294 you are left exposed for 20% of $37,178 or $7435.60. Almost $7500 in bills that are yours and yours alone.
The cost of a quality Medigap plan that will cover the Medicare deductibles and co-insurance can cost as little as $100 per month.
When you really take a hard look at your potential exposure for a common procedure you may find yourself wondering,"Am I being penny-wise, pound foolish when it comes to Medicare Supplement Insurance? Can I afford to be?"
Stephanie Coutavas is an Insurance Professional specializing in Senior Insurance Solutions and Medicare Insurance. Co- founder and Senior Broker at MedicareQuote4U.com Stephanie decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper,correct information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker."
Whether you are receiving Medicare Benefits before age 65, helping a parent or loved one or just not sure if there might be a better value for your health care $$$, we can help. Call us at 1-888-347-5552 to speak with a licensed Medicare Supplement Specialist or visit us at http://www.medicarequote4u.com/. We are your Medicare Supplement experts and we are standing by to help.
http://EzineArticles.com/6498145

How to Choose the Medicare Supplement That's Right For You

Which is better, Medicare Supplement (Medigap) or Medicare Advantage? This is a question that many people turning 65 will be asking themselves. In my opinion, all things considered equal Medicare Supplement Plan F would be the best option. Plan F covers the Part A and Part B co-insurance and Part A and Part B deductibles. Therefore, most if not all out-of-pocket costs will be paid by Original Medicare and Medicare Supplement Plan F. However, Plan F will probably be the plan with the highest premium.
A Medigap does not include Medicare Prescription Drug benefits. This means that you would have to purchase a separate Part D plan (PDP) which will add to your monthly cost for health insurance.
Medigap plans are standardized which means that Plan F will offer the same benefits regardless of which insurance company you purchase it from. The other Medicare Supplement plans are A, B, C, D, F, High Deductible F, G, K, L, M and N. All insurance companies that sell Medicare Supplements must offer Plan A. Rates, plans and insurance companies selling Medicare Supplements vary from state to state.
A Medicare Advantage plan could be a good alternative to Original Medicare. Many of the plans include the Part D. Premiums for Medicare Advantage plans are generally lower than Medicare Supplement Plans. Some Medicare Advantage plans have zero premiums. Medicare Advantage plan benefits vary from county to county. Many Medicare Advantage plans offer additional benefits that Medicare doesn't cover such as dental, vision or a free membership to a gym.
When considering Medicare Advantage HMO, PPO and POS plans you have to check to see if your doctors are contracted with the plans and what your out-of-pocket expenses will be for each covered service. Technically you can go to any doctor under a PPO plan. But if the doctor doesn't take the PPO you would have to pay the doctor his fees and get reimbursed by the plan later. If it's a PFFS plan, you have to check with your doctors to see if they would accept it. Keep in mind, that a provider can refuse to accept a PFFS plan at any time, even if they have accepted it before.
Everyone's situation is unique and their needs are different. I believe that it is important for seniors to do plenty of research, consult with people you trust and try to make the best decision for you.
Carlos Velazquez
http://www.medicaresupplementspecialists.com/
1-888-749-7088
We will help you compare the Medicare Supplement plans in your area and make sure that you choose the plan that best fits your needs. We work with more than 20 insurance companies in 48 states.
http://EzineArticles.com/6422893

Overview Of Medicare Supplemental Insurance

The health of an individual is almost like the primary source of everything that he or she has. When your body is not functioning properly and you are suffering from various debilitating conditions, chances are you will not be able to carry out your work properly which will greatly affect your daily living. Because of this, it is a big must for you to get a partner which will be able to help you secure your health conditions. And one of these is the Medicare supplemental insurance (aka Medigap insurance).
A Quick Glimpse
Medicare supplemental insurance (aka Medigap insurance) is a kind of private insurance for health which is designed as a supplement for Original Medicare. It is the one which is responsible for the payment of the costs of healthcare which is not being covered by Medicare such as the deductibles and copayments. Medigap plans are also going to cover some of the services which are not being covered by the Original Medicare insurance. In case that you have decided to enroll in Medicare while having the Medigap policy, Medicare will still be paying its share of the amount that they have approved for the costs of the healthcare that they cover. For the meantime, your policy is in Medigap will also be paying its share.
Every Medicare supplement insurance plan (aka Medigap insurance) is also expected to adhere to both Federal and State laws that are designed to protect the holders like you and it should be evidently identified as the "Medicare Supplement Insurance." Insurance companies are only allowed to sell a plan that is standardized and identified with letters A to N. Every standardized and regulated policy must offer similar basic benefits, regardless of the insurance company selling it. Service and cost is the sole difference between the policies being sold by various insurance companies.
Buying Medicare Supplemental Insurance (aka Medigap Insurance)
As a whole, whenever you buy your Medigap policy, there is a minimum of two components in the policy, Medicare Part A, which is Hospital Insurance and the Medicare Part B, which is the Medical Insurance. If you decide to buy a medigap plan, you have to directly pay Medicare Part B's monthly premium to Medicare. Also, you have to pay another insurance premium to the corresponding company of private insurance which provides the Medicare supplemental insurance (aka Medigap insurance).
To clear some issues, Medigap policy does not have anything to do with the coverage that you can claim from your employer for this is not Medicare Part B, Medicare Advantage Plan and is not way connected to Medicaid. What is primarily does is to help you in closing the gaps with your deductibles in Medicare. There are also policies that are providing extra benefits not being within the bounds of Medicare like at home recovery, prescription drugs and routine checkups.
Getting your own Medicare supplemental insurance (aka Medigap insurance) is a good way of assuring that you will be able to properly look into your health for you to be assured that you will have no difficulties in the near future.
Learn more about medigap insurance and to find out how to get the lowest rates for the plan best suited for you take a look at http://www.mostmedicare.com/ and know your options. Check out mostmedicare's extended guide and obtain the plan befitting to your needs.
http://EzineArticles.com/6474177

Some Interesting Facts About Medicare Supplement Insurance

This is usually around that time of the year when most folk around the age of 65 start looking into a Medicare Supplement Insurance plan. This plan is real lucrative to some, since it is used to cover the gaps that Medicare lacks, or doesn't cover entirely. How in need are you right now? If you are in dire need to pay for your medical expenses, doctor visits, and prescription medicines, then you might just have to get one of these awesome plans. Listen here, we all don't want to be in a financial position to have to rely on insurance to cover our costs of living, but a Medicare Supplement Insurance plan is a real good way to cover those costs you can't really afford to pay.
Obama is in the white house wanting to get rid of this fabulous insurance, he is insane. It won't happen, so stop worrying about the "what if" you do decide to get a plan and Medicare is abolished. Medicare is not going anywhere anytime soon, so you can get that out of your head. Let me ask you a question here; what if I told you I could find the cheapest rate for a Medicare Supplement Plan, with the best company out there? Would you want to apply for one? I'm sure if you were qualified then the answer to that question would be an automatic YES! That's no doubt. Medicare is here to stay, so you might as well jump on ship and get a Medicare Supplement Insurance plan right now.
The interesting thing about the Medicare Supplement Insurance market is that there are hundreds of brokers out there who help people like you figure out what plan best suits their needs. It doesn't matter if you are on Medicare or were denied coverage with a company before, you can still apply for a Medicare Supplement with a new insurance agency or brokerage.
Lots of seniors think that they would have to pay for a service that a brokerage offers, but that is not the case. The service a medicare supplement brokerage offers is free to you. They get paid by the insurance company when you sign up for a plan, and there are no upfront costs associated with any of this. So when you are ready to start an application online for your Medicare supplement, don't hesitate to look around for a broker or agent that is licensed in this department, and knows the ins and outs of Medicare. It will end up saving you tons in the future, and you would be glad you did.
Richard Cantu is President of GoMedigap, one of the nation's largest Medicare Supplement Insurance agencies. The mission of GoMedigap agents is to help Medicare recipients understand how Medicare supplements work and help them shop the market for the best combination of coverage and lower premiums. Visit http://www.gomedigap.com/ for additional information and resources including rates from such companies as Blue Cross Blue Shield, Mutual of Omaha, and many others.
http://EzineArticles.com/6442208

Medicare Advantage Vs Original Medicare

Original Medicare is a safety net, but does not pay 100% of charges incurred for covered services. In addition, Medicare doesn't offer coverage for other services such as routine dental, hearing and vision. Cost sharing with original Medicare includes hospital deductibles, co-pays and co-insurance for outpatient services. Medicare beneficiaries often say that they just cannot afford the 20% that Medicare does not pay. Of course they are referring to the outpatient co-insurance.
When comparing these two options, Medicare Part C offer:
Co-pays for many covered services, such as doctor's visits, testing and emergency room visits.
Part D drug coverage is often included in a Plan C, potentially resulting in some cost savings.
Advantage Plans often include coverage for additional services not covered by Medicare, such as; dental, vision, hearing and sometimes even health club memberships.
Some people with special needs may find Advantage Plans more focused on their individual situation.
Advantage Plans offer beneficiaries an annual maximum out-of-pocket amount. With Medicare your amount of cost sharing is not capped on an annual basis and with an Advantage plan, if you reach a certain thresh hold, you will have your costs covered 100% for covered services.
Medicare Advantage vs. Medicare supplement insurance
Medicare supplement insurance policies have been around for about 40 years. As you know, an insurance company receives a premium in return for filling in the gaps that original Medicare does not pay on covered services.
Not everyone can qualify for a Medicare supplement and an Advantage Plan may be the solution. Reasons a supplement may not be feasible include:
The premiums for a supplement are not affordable.
The beneficiary is dual eligible, qualifying for both Medicare and Medicaid, and as such, doesn't qualify for a supplement.
The beneficiary may have missed the guaranteed enrollment period for a supplement and cannot qualify medically due to the policies underwriting requirements.
Medicare Advantage vs. employer group insurance
Many people who become eligible for Medicare are able to maintain coverage through the former employer or are still employed. Having insurance in this situation is often seen as a benefit in return for the years of service with that employer.
Often, those eligible for coverage will opt out and choose an Part C. Some reasons for doing so may include:
The premiums required for the employer plan are not affordable.
Deductibles, co-pays and co-insurance may be considerably more than what could be had with an Advantage Plan.
The employers plan does not offer coverage as comprehensive as an Advantage Plan,
The employers plan may be restrictive in its network and not meet the needs of the retiree who wants more flexibility.
The beneficiary may find that due to the employer's volatility in the current economic climate, it's uncertain for how long the benefit will be available and the beneficiary wants some certainty.
It's your choice
There are many reasons that you may choose an Advantage Plan over other options available. Ultimately, you need to weigh your options, and armed with knowledge make your best choice.
Fully understand how medicare advantage plans work and how they compete against medigap insurance by visiting http://www.mostmedicare.com/ and reading the extended guide or speaking with one of there licensed experts in the field.
http://EzineArticles.com/6474197

Is Your Medicare Supplement Insurance Created Equally?

When it comes to your health, most Americans will do anything they can to keep it. That includes adding Medicare supplement insurance to their package of insurance so that they will be better able to pay for their medical expenses without giving away the farm. Everyone knows that healthcare is expensive, and they know that there has been a lot of debate about how much free health should be given away to the masses. There is nothing wrong with having healthcare available to all the people all the time, but it seems like there should be some way to hold the costs down without sticking it to the American people.
There is a way to cut the costs of healthcare and that has to some extent been addressed by Medicare and the Medicare supplement insurance that is offered by so many insurance companies. The one thing that should be done today that brings out the worst in everyone when it is even suggested is to control the cost of healthcare for the entire country by making everyone pay for their own health insurance instead of just giving healthcare away to every Tom, Dick, and Harry who wants to call the United States home.
There, that was my rant for the day, but the subject is still about Medicare Supplement Insurance, and that is a good topic. Senior citizens are the primary users of Medicare supplements and they are the ones who should be reaping the benefits of the program, not able bodied individuals who come here looking for the good life without going through proper channels. Oh, oh, there I go again. Here are some figures to let you know what it will cost the consumers yearly when they do decide to add Medicare supplement to their own lists of other yearly expenses.
Medigap has been added to the Medicare supplement insurance programs that are intended to help keep citizens healthy. One might assume that the only difference between Medigap plans is the cost that goes with them, but that may not be the case. Plan F costs $1336.72 annually when purchased from United World Insurance Company. That same plan costs $1720.45 annually when purchased from Genworth Life and Annuity Insurance Company. As before, the same plan costs $2182.02 annually when purchased from Bankers Life and Casualty Insurance Company. It appears that the truth of the matter is Medigap is not always created equally.
Richard Cantu is President of GoMedigap, one of the nation's largest Medicare Supplement Insurance agencies. The mission of GoMedigap agents is to help Medicare recipients understand how Medicare supplements work and help them shop the market for the best combination of coverage and lower premiums. Visit http://www.gomedigap.com/ for additional information and resources including rates from such companies as Blue Cross Blue Shield, Mutual of Omaha, and many others.
http://EzineArticles.com/6444667

Medicare Supplemental Insurance - Which One to Choose

Medicare Insurance has never been this complicated! With so many changes in Healthcare Reform over the past 18 months, seniors today have to become experts to know which plan is best for them. Will it be around next year? Can I switch if I'm not happy with the benefits? These are all great questions to ask and better yet, know the answer to.
The safest way to go when it comes to your healthcare in your "golden years" is to protect yourself with a Medicare Supplement Plan. This means that the you will have Original Medicare, Parts A & B, as your primary medical insurance. A Medicare Supplement or Medigap plan will cover the cost that Medicare does not cover. This includes co-pays, co-insurance and other expenses.
Plan F of the Medicare Supplements has recently become the Cadillac choice for seniors today. Essentially it covers almost all of your potential out-of-pocket expenses that Medicare does not. Other plans such as Plan N or Plan G still leave some gaps that could potentially be devastating financially. For this reason the Plan F is your best choice when considering your options of a Medicare Supplement.
The greatest part is that the Plan F is the same no matter which carrier you decide to choose. In any city, county or state - the benefits remain the same! My advice is to shop around and make sure your getting the best price for the plan as each carrier sets their own price for their service. Some carriers even add Silver Sneakers or other health and wellness benefits that other do not, usually at no additional cost.
Now that you have your Supplement insurance squared away, make sure you also procure a Part D, better known as a Prescription Drug Plan. Neither Medicare nor your supplement plan will cover your monthly prescriptions and it is imperative that you seek the best plan for you based on your needs and budget. If you fail to do so, penalties may be imposed on you later and you will pay a higher rate for as long as you are on Medicare.
Lastly, a common misconception is that when you have a Plan F, regardless of your carrier, you are not bound by their network of providers. Remember, you have Original Medicare as your primary insurance and thus you can see any provider who accepts Medicare! Your supplement just covers the difference, so they don't care who you have as your Supplement carrier as long as they get paid.
For more information on Medicare Insurance please visit our website for updates, news, quotes and online applications.
http://EzineArticles.com/6484668

Just Qualifying for Medicare Benefits? Some Things to Consider

When you finally qualify for Medicare benefits you can breathe a sigh of relief. Original Medicare as it stands currently is arguably the best health insurance plan available. Granted there are some gaps in the coverage. There are deductibles and co-insurances and co-pays that you will be responsible to pay. The good news is that these gaps are very well defined and very simple to cover with any of the 10 standardized Medicare Supplement Plans currently available.

You finally have a chance to set yourself up in a situation where you can totally predict your medical costs for the year. No surprises, no medical bills. Yet this time for a lot of folks is filled with stress. Piles and piles of mail, hundreds of emails and phone calls. This from agents and brokers looking for your business.

Then you have the people you actually know. Your brother-in-law who retired last year telling you what he did and why you should do the same thing. Your neighbor who can't tell you enough how happy she is with her Medicare Advantage Plan.

The bottom line is that this is your open enrollment period and you only get one! One open enrollment period in your entire life. You have very special rights during this time. You have what are called Guaranteed Issue Rights. This means that during this time you can not be denied coverage for any plan that you choose. It does not matter what your past medical history is. You do not have to answer any health questions at all. Just pick the plan that is right for you and apply. These rights last until 6 months after your 65th birthday or your Part B effective date. Even if you are in great heath now, we know that unfortunately may not always be true. It would be tragic to not get the facts, make a choice that you regret and then not be able to rectify the situation because you can't qualify health-wise.

So please, find an Independent Broker. One who specializes in Medicare. It should be their one focus. Ask the questions to determine if they have your best interests at heart. To the best of your ability make sure that the information that they are providing is up to date and accurate. Do not accept a partial understanding of your options. A competent broker will make sure that you comprehend the choices and the impact each option will have on your pocket-book and your health care. In other words demand the service that you deserve.

Please don't just throw your hands up and say it's too much, too confusing. Don't do what your best friend, neighbor or your brother-in law did. Your circumstances are unique to you. Seek the help you need from a licensed professional. It is far too important. Believe me the decisions that you make during your Medicare Open Enrollment Period will have lasting impact.

Stephanie Coutavas is an Insurance Professional specializing in Senior Insurance Solutions and Medicare Insurance. Stephanie decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper,correct information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker."

Whether you are receiving Medicare Benefits before age 65, helping a parent or loved one or just not sure if there might be a better value for your health care $$$, we can help. Call us at 1-888-347-5552 to speak with a licensed Medicare Supplement Specialist or visit us at http://www.medicarequote4u.com/. We are your Medicare Supplement experts and we are standing by to help.

http://EzineArticles.com/6433347