Tag Archives: medicare supplement

Prescription Drug Coverage With Medicare Supplements

Medicare Supplement (Medigap) insurance policies do not provide prescription drug coverage. If you have a Medicare Supplement plan, you can still get drug coverage through a separate prescription drug plan through companies that offer drug plans like Silverscript, AARP, or Humana. Prescription drug plans are also known as Part D of Medicare.

Prescription Drug Coverage Under Legacy Medigap Plans H, I, and J

Up until 2010, Medicare supplement plans H, I, and J offered drug coverage as a part of their coverage. Those plans were eliminated in 2010 and replaced with plans K through N – none of which offer prescription drug coverage.

You can continue to receive your drug benefits from one of the discontinued plans if you still have it in force. But you cannot have a Plan H, I, or J and also have a Part D drug plan unless you have your insurance company to remove the prescription drug coverage from your Medigap plan. This could also change your monthly premiums.

Those legacy plans are not getting new, healthy enrollees coming into the plans, and that is a problem. You can expect the premiums on those three plans to continue to rise in the future. Insurance companies need new, healthy policyholders to help keep premiums low. That is not an option since those legacy plans are no longer available for sale.

There are better options available today if you are on an older plan. Check the rates for your area at the bottom of this page. You can also call our office at 1-888-228-6119 to speak with a licensed independent agent about your situation.

How To Get Prescription Drug Coverage

If you are enrolled in Medicare and have a Medigap plan other than H, I, or J, you have two options. First, you can enroll in a standalone Part D prescription drug plan. Your second option is to move to a Medicare Advantage plan. Although over 80% of Medicare Advantage plans have drug coverage included, most Seniors are not willing to give up the freedom and autonomy they have with a Medigap plan to go onto a Medicare Advantage plan with all of its restrictions. You cannot be enrolled in a Medicare supplement and a Medicare Advantage plan at the same time.

You can only enroll in a Part D plan under special circumstances, such as turning 65 or going onto Part B of Medicare for the first time. In both of those cases, you can enroll three months before or three months after the month that your Part B coverage begins. You can also enroll or change plans each year during the Annual Election Period (AEP). That period runs from October 15 through December 7. AEP restrictions apply to Part D or Medicare Advantage plans only. With your Medigap plan, you can make changes to your plan any time of year.

Enrolling in a Standalone Prescription Drug Plan

If you need a standalone Part D prescription drug plan, we recommend you call Medicare directly at 1-800-MEDICARE (633-4227). You can also visit them at http://medicare.gov. If you give them a list of your medications, they will give you the lowest priced plan based on what you are currently taking and where you live. They are totally unbiased and willing to help. One recommendation is to call them late at night or very early in the morning. They are available 24 hours a day.

 

The advice on this website is informational. Please contact us before making a purchasing decision to help determine what is best for your individual situation. You can contact Keith Murray at 888-228-6119 or keith@expertmedicare.com.

Keith Murray is an independent agent and the owner of Integrity Senior Solutions Inc. He has over 20 years of experience working with Seniors to meet their insurance and financial needs.

©2016 Integrity Senior Solutions Inc

The Parts and Plans Of Medicare

Sometimes the P words can get a little confusing. When adding to all the talk of deductibles and copays and all the things that go with making good insurance decisions, it can be a little overwhelming. Let’s talk about which is which. The Parts of Medicare are the actual divisions of the Medicare program. Medicare plans are the supplemental plans offered by insurance companies.

The Parts of Medicare

When talking about the parts of Medicare, it is in reference to how the Medicare program is divided into the separate parts, or divisions. Medicare is divided into 4 parts – Part A, Part B, Part C, and Part D.

  • Helps cover inpatient care in hospitals
  • Helps cover skilled nursing facility, hospice, and home health care
  • Helps cover doctors’ and other health care providers’ services, outpatient care, durable medical equipment, and home health care
  • Helps cover some preventive services to help maintain your health and to keep certain illnesses from getting worse

Medicare Part C (also known as Medicare Advantage)

  • Medicare Advantage is a Medicare replacement program
  • Offers health plan options run by Medicare-approved private insurance companies, not by Medicare
  • You give up your rights to Medicare and give them to an HMO or PPO to make your coverage decisions for you
  • Medicare Advantage Plans are a way to get the benefits and services covered under Part A and Part B
  • Most Medicare Advantage Plans cover Medicare prescription drug coverage (Part D)
  • Some Medicare Advantage Plans may include extra benefits for an extra cost
  • Helps cover the cost of prescription drugs
  • May help lower your prescription drug costs and help protect against higher costs in the future
  • Run by Medicare-approved private insurance companies

 

Who Pays For What?

Parts A and B are funded by the Medicare program. There are some gaps in the coverage from Medicare, which is why it is important to get a supplemental coverage plan for Medicare – whether it is through employer group coverage or individual plans that you purchase.

Parts C and D – although completely controlled and governed by the Medicare program – provide care through private insurance companies like UnitedHealthcare, Humana, or Aetna. With a Part C plan, Medicare pays the insurance company to provide the coverage for you. All bills are paid by the plan. Each of the plans provided by individual insurance companies comes with its own copays and deductibles that you pay when you receive medical care. Each plan is different, so be sure you know what your share of the cost will be when services are rendered. The downside is that each plan has its own network of providers, so if you have a doctor you work with that you like, make sure to find a program that he or she participates in. There could also be limitations if you travel outside the coverage area for your plan.

 

Under Part D – the Medicare Prescription Drug Plan – you pay a premium to the insurance company for your coverage. Then you also pay a copay any time you fill a prescription.

Medicare Plans Explained

The Medicare supplement plans (Plans A-N) are individual insurance plans offered by the insurance companies. These plans were established by Congress and every company that sells them must sell the exact plan as regulated by Medicare. The plans are identical from company to company.

There are 10 different plans available for insurance companies to sell. The only difference in a Plan F policy from one company compared to a Plan F policy from another company is the price, the underwriting involved, and the agent assisting you. A Plan F from Mutual of Omaha is identical to a Plan F from UnitedHealthcare. In the Medicare and You book which is printed and distributed by Medicare each year, it says (in 2016 it is on page 100), “Different insurance companies may charge different premiums for the same exact policy.” They have different premiums, but the coverage is exactly the same. Sometimes the premium difference can be more than $150 per month!

The companies will base their rates on the underwriting required to be approved. A cheaper plan may be harder to get into if you have any health issues. Other companies may cost more, but may accept more applicants including those with pre-existing conditions. Here is a chart that shows the different plans that the companies have to abide by. All companies must offer Plan A and either Plan C or Plan F. Other than that, they can choose what to offer their customers.

You Have Choices

There are many choices with Plans A-N. These plans have a monthly or annual premium with the insurance company. Plan F is the most popular Medicare Supplement plan and has been for many years. With Plan F, you pay the monthly premium and all of your medical care is covered (with the exception of prescription drugs which require a separate Part D drug plan from the insurance company, if you so desire).

The premium is higher on these plans than a Medicare Advantage plan, but with a Plan F there are no additional co-pays or deductibles to pay for any Medicare-approved services – just a monthly premium which makes it easier to budget and maintain medical costs. Many Medicare Advantage plans have out of pocket limits of $6,700 per year. One major health issue and you could be paying big bills. You don’t have that exposure with a Medicare supplement plan, plus you can go to any doctor or hospital that accepts Medicare without worrying about networks. You can call 1-888-228-6119 to have your questions answered. There is no charge for our service.

 

The advice on this website is informational. Please contact us before making a purchasing decision to help determine what is best for your individual situation. Our service is FREE. You can contact Keith Murray at 888-228-6119 or keith@expertmedicare.com.

Keith Murray is an independent agent and the owner of Integrity Senior Solutions Inc. He has over 20 years of experience working with Seniors to meet their insurance and financial needs.

©2016 Integrity Senior Solutions Inc

Medicare Advantage or Medicare Supplement? The Pros and Cons

 

There is a lot of information on the internet about Medicare Advantage and Medicare Supplement plans. That typically means there is some misinformation, too. I follow a lot of news sources on Medicare and read articles on the web. While gathering information for this article, the first two articles I ran across had glaring mistakes about what these two plans do.

I’ll get into those later, but the fact is that you need to learn about the programs and know what is best for you. You are the one to make the best decision for your situation. My goal here is to help educate and this article will be a little lengthy.

How Medicare Advantage Plans Are Structured

Medicare has a lot of co-payments and deductibles. It can be costly if you do not have insurance to fill the gaps – whether Medigap or Medicare Advantage. Medicare has four parts – A, B, C, and D. Part A typically covers most of your confined care – such as hospital, home health care, hospice, and skilled nursing facilities. Then there is Part B which typically covers your physician and other healthcare providers’ services, as well as some preventative care. There are other items covered under each, but for the sake of simplicity that is the easiest way to remember the two parts of Medicare. Part D is prescription drug coverage.

Medicare Advantage replaces your Medicare Part A and Part B services – and most of the time your Pcoffe man smallart D as well – and combines them into one policy with a private insurance company. This is what is known as Part C of Medicare. If you have a Medicare Advantage plan, you do not even have to carry your Medicare card around with you – just the card that the insurance company provides. You must still pay the Part B premium (as you do with Medigap plans).

If you enroll in a Medicare Advantage plan, you are giving up your rights as a Medicare beneficiary and handing them over to an HMO.

How Medigap Plans Are Structured

Medicare supplement plans do not replace your Medicare coverage under Part A and Part B. Instead, it covers the gaps in Part A and Part B that you would normally have to pay out of pocket if you have Medicare only. You can click here to see the cost information and deductibles on the Medicare.gov website. The Medicare supplement plans do just what the name says – they supplement your Medicare coverage, filling in the gaps of coverage.

Medicare Advantage PROS

Cost

Medicare Advantage plans usually have lower premiums than Medicare supplements. There are many areas where Medicare Advantage plans have no monthly premiums at all – only co-pays and deductibles. This is one reason the MA plans have gotten so popular.

Part D Inclusion

Nearly 80% of the Medicare Advantage plans available have the Part D included at no additional charge as an option for coverage. By including your Part D coverage with the Medicare Advantage (MAPD), you can keep your monthly premium lower and have one insurance card on your person for Medicare and for prescription drugs.

All Coverage From One Provider

As I just mentioned in the last point, MAPD plans allow you to have all your insurance coverage from one insurance company.

Extra Services

Almost all MAPD plans also include extra services such as limited dental, vision, and gym memberships at no additional cost. These extra services may be limited, but they are included even with many of the no-premium plans available today.

Medicare Advantage CONS

Network Limitations

Medicare Advantage plans negotiate contracts with networks doctors, hospitals, and other healthcare providers. These networks are put in place in order to keep their costs low. This means that you must adhere to their networks or face substantially higher out of pocket costs. If you are in a HMO plan, you will be forced to pay all costs if you go out of network. Under a PPO plan, you would be faced with higher out of pocket cost-sharing. This has been in a issue in some instances where patients went in for surgery thinking everything is fine with their network coverage only to receive a huge bill from an anesthesiologist who was actually not in the network, or a patient who receives care in an emergency room from a physician not in their network.

Most of the time, the networks cover certain geographic regions. So if you need care while traveling or visiting family, it could become a problem. Also, Medicare Advantage plans offer no coverage at all for travel outside of the United States.

Your Co-Pays, Deductibles, Physicians, Networks, and Plan Can Change From Year To Year

I mentioned above that 78% of beneficiaries have access to zero-premium plans in 2015. In 2014 – just one year earlier – that number was actually 86%. Medicare Advantage plans are not guaranteed renewable which means that your deductibles and co-pays are not set in stone – your plan coverage can change from year to year. Not only can it change, but your plan can go away completely or your physicians can be out of network from one year to the next. You could be forced to scramble to find a new insurance plan as happened with AARP plans in Florida recently.

Worse yet, your physicians can actually leave the network in the middle of the year. This could be especially bad if you are in the middle of treating a condition. As more cuts to the payments that the government send to the insurance companies for Medicare Advantage patients are expected, the insurance companies are responding by saying they will have to further reduce the size of their networks.

Fluctuating Annual Costs

If you maintain good health, you can expect your costs to be much lower because of the low premiums of the MAPD plans. Your out of pocket expenses could remain low if you aren’t going to the doctor often. However, one major health problem or accident could worsen the emotional and physical toll by also hitting your bank account to the tune of up to $6,700 – the out-of-pocket maximum for 2015. If you are out of network with your HMO plan you could be responsible for the entire the bill.. The uncertainty of what your healthcare expenses will be from year to year makes it difficult to budget for those expenses.

Chemotherapy treatments are treated as an outpatient procedure. This means with most plans you could face a 20% co-payment for chemo treatments. Our son went through a fight with cancer when he was 11 years old, and I can tell you from experience those drugs are expensive. One particular drug was over $10,000 every time he took it.

You can see that at 20% co-payments, you could hit that $6,700 co-payment each year in a hurry. Cancer is not something you ever want to face, but being saddled with a lot of out of pocket costs on top of it could make it even worse. All you want to think about at that time is getting better, not having to worry about how you are going to pay for it.

Enrollment/Disenrollment Issues

Medicare Advantage plans and Part D prescription drug plans have only one window of opportunity each year for you to enroll. It happens from October 15 through December 7 each year. During that time, you can change plans or go from MAPD to original Medicare with a Medicare Supplement plan (or vice versa). There are Special Enrollment periods such as if you move in or out of your network coverage area. You have an Initial Enrollment Period three months before and three months after you first enroll in Part B of Medicare. Other than that, you cannot change plans or move back to original Medicare.

Medicare Supplement (Medigap) PROS

No Networks

With a Medigap plans, you can go to any doctor, any specialist, or any hospital anywhere in the United States as long as they accept Medicare. As of the end of 2013, less than 1% of doctors had formally withdrawn from the Medicare program (42% of those were psychiatrists). That equates to over 99% of US physicians taking Medicare payments for their services. There are no networks to keep up with.

Another benefit is that the most Medigap plans (C, D, F, G, M, and N) cover foreign travel emergency up to $50,000 for travel outside of the United States. Medicare Advantage has no coverage outside of the US.

Guaranteed Renewability

When you take a Medigap plan to supplement Medicare, the insurance company cannot change your coverage. They also cannot cancel your coverage unless you just don’t pay the premium. Even if Medicare quits offering your plan, your coverage will remain in force as long as you pay for it. I still have clients that are on the old Plan J that hasn’t been offered for sale since 2010.

The company also cannot raise your premium unless they do so for everyone on that plan in your state. So if you are diagnosed with a medical condition and have a lot of claims the insurance company cannot drop you. They also cannot raise your premiums because of it. And they can never single you out for a rate increase on a Medicare supplement plan.

Standardized Plans

Medicare Advantage plans that vary from company to company, year to year, or even from region to region. Medigap plans are identical from company to company. The Plan F you buy from Mutual of Omaha is identical to the Plan F from UnitedHealthcare or Aetna. So there is no confusion as to what your coverage is or what it might change to. The difference in premium between each company comes down to the claims they pay and the way they underwrite applicants.

No Claim Filing or Paperwork

All Medigap insurance companies offer electronic crossover filing with Medicare. This means that when your doctor or healthcare facility files with Medicare it electronically files automatically with your Medigap company. The company then pays the provider directly. Your doctor’s office does not even have to file with your insurance company. They simply file with Medicare and the rest is taken care of automatically. That means that you don’t have to keep up with any paperwork- it’s all automated for you and your doctor.

Easy To Budget Annual Costs

You won’t have any surprises with what your annual healthcare out of pocket costs are going to be with a Medigap plan. For Medigap plans, I definitely recommend Plan G over Plan F. This means you would have a $166 annual Part B deductible to pay (in 2016) and then all your other Medicare-approved care would be taken care of. If you or spouse end up in the hospital, you can look at each other and say, “This will only cost us $166.” That brings peace of mind.

Medicare does not approve cosmetic procedures and limits skilled nursing care (as does MAPD).

Medicare Supplement (Medigap) CONS

Higher Monthly Costs

You will have a monthly premium to pay each month with a Medicare supplement. Your costs may be higher on a Medigap plan if you rarely go to a doctor or seldom need healthcare. If you do run into a medical situation or currently have medical conditions that require a lot of care, the Medigap plan could come out substantially cheaper each year. That’s because the MAPD plans typically have a $6,700 maximum out of pocket. If you have a Plan G Medigap plan, the maximum annual out of pocket will be $166 (that is the Part B deductible for 2014-2015 that is not covered by Plan G) unless you have non-approved services done (cosmetic, etc.) or if you stay in a hospital more than 455 consecutive days.

No Part D Prescription or Dental Coverage Included

If you have a Medigap plan, you will need a standalone prescription drug plan. You could also get a standalone policy that would cover dental, vision, and hearing services. However, both of these have an additional monthly cost associated with them. The standalone dental, vision, and hearing coverage is typically much better than you get under a MAPD plan.

Policies May Be Underwritten

You have an open enrollment period for getting a Medicare supplement from any company you choose. This period starts six months before you enroll in Part B of Medicare and the six months after. Medicare Advantage and Part D allow a 3 month open enrollment before and after your date of first coverage under Part B. You will likely have to be underwritten to get a Medigap plan once you are out of your Open Enrollment period.

Conclusion

There are many pros and cons to each program. Every situation is different. There is no one size fits all solution. You can give us a call to get more personalized service to better understand your individual options. There is no charge for our service.

 

The advice on this website is informational. Please consult an independent insurance professional before making a purchasing decision to determine what is best for your individual situation. You can contact Keith Murray at 888-228-6119 or keith@expertmedicare.com.

Keith Murray is an independent agent and the owner of Integrity Senior Solutions Inc. He has over 20 years of experience working with Seniors to meet their insurance and financial needs.