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

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

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