Medicare Supplements Save You Money!

No Deductible or Co-Pays!

See Your Own Doctors!

Below is a quick overview that will make you conversant at the dinner table.

Original Medicare, which has been around since 1965, has 4 parts designated Part A, Part B, Part C and Part D.

• Part A is for Hospital , Hospice Home Care and Skilled Nursing Facilities

• Part B is for Physicians Services and other Outpatient Type Services

• Part C (Medicare Advantage Plans) combines Part A, Part B and sometimes Part D (prescription drug) coverage

* Part D is to help cover prescription drugs

Medigap Policies are designed to pick up medical costs that are not covered by Original Medicare Part A – Hospital Coverage and/or Part B-Physicians Services.

Medicare Supplements issued after 2006 are not allowed to provide prescription drug benefits.

Under Part A of Original Medicare when you stay overnight in the hospital, you are responsible for the Part A (Hospital) Deductible which is $1,100 in 2010. Now, this deductible can occur more than 1 time in a calendar year. If you are hospital free for more than 60 days, a new Part A Deductible will apply if you go back into the hospital for another overnight stay.

There are 10 Medicare Supplement Policies. (see Medicare Comparison Chart down below)

These polices are labeled A though G and then K-N.

Most people select Plan F or G.

The good news is that in 1993 most states agreed to standardize the benefits offered by each plan letter so that a Plan F, as an example, with any carrier is exactly the same. Only premium and company ratings are different.

If you buy any Medigap/Medicare Supplement Plan B or greater, then the Part A Hospital Deductible is picked up by the Medicare Supplement Provider.

Under Part B of Original Medicare you have a calendar year deductible for Physicians Services of $155 in 2010. Plan C & F are the only plans that will pay that Medicare deductible.

However, if you want to save some money then a Plan G is right for you.

Plan G does not cover the $155 Physicians Calendar year deductible so the premium will be a bit lower.

All supplemental plans pay the 20% co-payment that Medicare Part B doesn't cover.

All supplemental plans pay the Part A Co-insurance costs up to an additional 365 days after Medicare benefits are used up.

If you’re Doctor does not accept Medicare reimbursement as payment in full (known as accepting assignment) then choose a Plan F or G because each will pick up 100% of any Excess Charges that are billed. Excess Charges only come in to play if your Doctor doesn’t accept assignment.

How can you know this? Just ask the office manager if the Doctor accepts assignment.

An example of a charge from your doctor would calculate out this way.

Let’s agree that your deductible for the calendar year has been satisfied because either you paid it or it was paid by the MediGap Policy (Plan C or F).

Your fee is $100 for the visit and this bill is electronically submitted to Medicare. The Medicare Approved Amount is determined according to the physician’s zip code area and is $80.

Then Medicare pays 80% of $80 which is $64.

Next, the balance is electronically forwarded to the Medicare Supplement Insurance Provider who receives this bill and pays the balance of $16 which equals the total of $80.

If your Doctor is set up with Medicare as accepting Assignment then the extra $20 is dismissed. If the Doctor is set up as Non-Assignment then the extra $20 is paid. So, the bottom line is that your MD is paid in full.

According to a top provider of Medicare Supplement Policies 80% of MDs accept Assignment.

So, now you ask who has the lowest cost plan because I told you that the Plans are standardized, right? Right!

The simple answer is that it depends on your state. This is a competitive market and you want an A+ carrier that sells a lot of plans because the rates will be lower and stay lower compared to the smaller or regional companies.

Some insurance companies make Medicare Supplement Plans available to it’s agents as part of an effort to be all things to all clients.

This can be a mistake because these companies don’t do a lot of volume. We all know that Wal-Mart gets really low prices because they have a lot of volume moving off the shelves. The same concept applies with units of insurance – stick with a big company for the best deal today and in future years.

Want an Agents help? Give us a call 1-888-240-9202 Ask for Jeff or George