Often, when seniors are choosing their Medicare supplemental plans, or Medigap, they overlook the added no cost benefits. Obtaining such benefits can save seniors thousands of dollars each year. Directory
According to the American Association for Medicare Supplement Insurance (AAMSI) each year approximately 35 million people turn 65, thus becoming eligible for Medicare. Roughly 13.1 million people have Medigap. Some, but not all, of the Medigap policies now offer, no cost benefits. Seniors considering Medicare options should ask questions of their insurance agents about the various benefits attached to Medigap policies.
The added benefits programs offer free access to gyms and fitness centers, discounts on eyeglasses, eye exams, discounts on hearing aids and exams. The list of benefits is varied and each Medigap plan may have its own no cost benefits to entice seniors. The American Association for Medicare Supplement Insurance holds an online for consumers seeking to connect with Medicare agents. Remember, you need to ask about benefits or you may miss out.
Posted on Tuesday, September 12th, 2017. Filed under
Medicare.
Seniors living on a fixed income can feel frustrated with Medigap premium increases. Unexpected changes in Medigap rates can prove to be difficult to pay for. However, Medigap does offer multiple ways for seniors to save money and lower premiums.
When searching for ways to lower Medigap premiums, seniors can take advantage of household discounts. Check to see if your chosen Medigap carrier offers household discounts. For example, many carriers offer discounts if both spouses have a policy with the company. Savings of even five percent add up to a lot of money over the years. Furthermore, some companies offer this discount option to anyone living with another person, whether they are married or not even if that individual does not have a policy. It is worth asking about to see if you qualify to save money.
Another way to save money is to opt for Medigap Plan G. While Plan F has been the most popular, it is not always the best value. Plan G works just like Plan F, except that you pay the once-a-year Part B deductible ($183 in 2017). It is possible to find a Plan G that can save more than $183 in premiums and after you pay your deductible, you pocket the difference.
Shopping around for reasonably priced policies is the smartest way to go. And one area that you can likely save money is shopping for all broker prices in your market. This means that rather than just go with the big name, well-known insurance carriers (like United Healthcare or Cigna), ask about getting quotes from all carriers in your market area. Some lesser-known companies that offer good deals with the exact same policy coverage.
Recently high-deductible health plans have become trendy because they offer low premiums. What many people do not realize is that Medigap has a high-deductible health plan option — high Deductible Plan F. In this plan Medicare pays its share and you pay yours until you reach the plan deductible ($2,200 in 2017). Once you reach the deductible, the plan kicks in and pays 100 percent of your share for the remainder of the year. Premiums for this particular plan are exceedingly low, saving you hundreds of dollars a year.
Posted on Friday, September 8th, 2017. Filed under
Medicare.
New beneficiaries of Medicare often ask: Which type of coverage is best, Medigap or Medicare Advantage? Because each individual’s situation is different, it is important to note that what might be perfect for one person would not work for another. While Medicare Advantage plans, also called Part C Medicare, usually have lower premiums, Medigap plans are easier to comprehend.
In 2016 a report released by the Kaiser Family Foundation indicated that roughly 31 percent of Medicare beneficiaries decided to choose Medicare Advantage. Medicare Advantage plans have either an HMO or PPO network through which members access their healthcare. This allows Medicare Advantage to offer low premiums with some plans having $0 premiums. In choosing Medicare Advantage, members have access to a built-in Part D benefits.
Medicare Advantage plans may also include other attractive benefits, such as routine eye and dental care. But be aware that there are back-end costs in the Medicare Advantage plans. The costs may be minute if you are healthy but could escalate later if you require more care. Therefore, it is a good idea to take the time to find out what to expect out of your chosen Medicare Advantage plan.
The two important areas to examine closely in your Medicare Advantage plan are deductibles and copays. In order to find out more about deductibles for the plans that interest you, first check the Summary of Benefits to see what you are responsible for right up front. Medicare Advantage plans cover the same Part A and B services offered by Medicare, so a careful comparison is to your advantage.
Furthermore, Medicare Advantage members pay copays for medical care. Copays are very common for ER visits, lab work, ambulance trips, x-rays and other services. For example under one plan a beneficiary with a $15 copay at their primary care doctor’s office will pay a $45 copay to see a specialist. The copay amounts vary by plan, thus it is a good idea to research the plan you are choosing before signing up. To help you determine what may be best for you financially, try to calculate what you may spend in an average month on health care. Doing your research before you need to make choices should provide you with the best outcome.
Posted on Friday, September 1st, 2017. Filed under
Medicare.
This year will see one of the largest Social Security cost-of-living adjustment since 2012. However, Medicare premiums are said to increase as well.
Even though the Social Security COLA is not announced until October, inflation trends are pointing to an increase of roughly two percent. Previously, there was zero COLA in 2016 and only a 0.3 percent in 2017.
The cost-of-living adjustments are determined automatically through a formula tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). From 2013 through to 2015 annual COLA increases have averaged about 1.3 percent. Low COLAs are relatively rare, but 2018 will be an unusual year for retirees.
The last couple of years saw non-protected Medicare beneficiaries paying most of the cost of rising Part B premiums. In 2017 they are paying $134/monthly versus protected beneficiaries who are paying roughly $109/month.
For a retiree receiving the average Social Security benefit of $1,360 per month, a two percent increase would translate into $1387.20 per month. However, Medicare Part B premiums are taken off Social Security. Next year, the impact of Part B premium cost will vary based on the “hold harmless” Social Security provision.
The “hold harmless” law states that the Part B increases must not exceed the amount of the COLA — ensuring that net Social Security benefits do not decrease. This provision applies to roughly 70 percent of those enrolled in Medicare in both programs. The “hold harmless” provision does not include those who delayed filing for Social Security benefits, and possibly some state and federal government retirees. Well-to-do seniors are not protected under the “hold harmless” law.
When the 2018 COLA kicks in it will help spread Part B costs across the total Medicare program, in effect leveling the playing field where non-protected enrollees get lower premiums and protected enrollees will pay more.
Across the board it appears the COLA formula, even with the assistance of the “hold harmless” law, is not able to keep American seniors stable with ever increasing inflation. Rising health care costs threaten to dramatically eat into net Social Security benefits over time. Many seniors may find themselves working longer to delay the number of years of Medicare payments to be made.
Posted on Thursday, August 31st, 2017. Filed under
Medicare.
Some Medicare beneficiaries, those that are fairly new to the program, are not aware that if they do not agree with a payment decision or coverage decision made by a Medicare health plan or by Medicare, that they might file an appeal.
There are five levels involved in the appeals process and a beneficiary can proceed up a level if the appeal is denied at a lower level. In order to prepare for an appeal, make sure to gather any and all information from your physician or healthcare practitioner.
If you need a quick decision because your health is in jeopardy, you may request a quicker decision. If your doctor or your Medicare plan agrees, a decision must be delivered within 72 hours.
Always be aware of what Medicare covers and does not cover and what options are available to you if you disagree with decisions made that may affect your health.
Many Medicare beneficiaries do not realize that once they sign up for Medicare they are eligible to get a number of free preventive services. Additionally, for new beneficiaries, Medicare Part B offers a “Welcome to Medicare” preventive visit during the first 12 months of enrollment. During this visit, your doctor will review your medical history and provide you with information regarding any services you may need. Beneficiaries who have had Medicare Part B coverage for over 12 months qualify for an annual wellness visit to update or get a personal health care plan from your doctor.
Medicare also provides its beneficiaries with other free preventive services. Some of these services are listed below:
A cardio-vascular screening every five years
Annual mammograms
Annual flu shots
Annual screenings for prostate cancer
Annual screenings for cervical cancer
Annual screenings for colorectal cancer
When you sign up for Medicare, take the time to find out what it offers. Preventive services are important for all beneficiaries to take advantage of as theses benefits lead healthier lives. Always read your health care insurance policies and if you have questions, speak to a health care insurance expert agent.
While Medicare costs seem to always be increasing, the good news is that the coverage gap, part of Part D, is going down.
The coverage gap, also known as the “doughnut hole” is a temporary limit on what Part D, the drug plan, will cover for prescription drugs. In other words, the doughnut hole is defined as the period where you pay for your drugs out of pocket.
Not everyone will enter the doughnut hole. The doughnut hole begins only after you and your plan have spent a certain amount on covered drugs. In 2017, that doughnut hole or gap starts when total drug costs reach $3,700. If a beneficiary is in that hole, they get a 60 percent discount on brand-name drugs and a 49 percent federal government subsidy for generic medications.
In addition, there also is catastrophic coverage where the government starts picking up most drug costs when out-of-pocket expenses for a patient are over $4,950.
It is always a good idea to check into your health insurance options periodically. It is important for you to understand your coverage and how it changes.
There are a number of opportunities to enroll in Medicare. Being aware of all the possible enrollment periods can help you avoid penalties.
There are multiple enrollment windows in addition to the initial seven-month initial enrollment period. If you missed signing up for Part B during the initial enrollment window, you are not working or are not covered by a spouse’s health insurance through work, you may sign on for Part B during the general enrollment period from January 1 to March 31. If you sign up during that period, you coverage begins July 1. However, you will pay a life-penalty of 10 percent for each 12-month period you did not sign up for Part B.
If you are currently working and are covered by an employer’s plan, you may sign up later without penalty during a special eight month enrollment period applicable if you lose employer health care coverage. If this special enrollment period is missed, you need to enroll in the general enrollment phase.
The open enrollment period, from October 15 to December 7 every year, permits you to change Part D plans or Medicare Advantage for the next year. Note that you may now change Medicare Advantage plans outside of the open enrollment period if you choose a plan with a government awarded five-star quality rating.
Ideally, it is best to sign up for Medicare early, but you can certainly wait until your 65 birthday. It is important to remember though that signing up late may incur penalties that increase your monthly payments permanently.
If you already receive Social Security benefits, you are automatically enrolled in Parts A and B. You can opt out of Part B, since is has a monthly cost. However, if you choose to keep it, the premium cost will be deducted from your Social Security benefits.
If you are not on Social Security, you have to sign up for Parts A and B yourself. Starting three months before your 65 birthday, there is a seven-month period referred to as an initial enrollment window that begins. This window closes three months after your birth month. To make certain you get coverage for when you turn 65, you need to sign up in the first three months.
You may be able to delay signing up for Medicare is you are still working and your employer is providing health insurance or if you happen to be on a working spouse’s health insurance plan. If you lose coverage provided by an employer, you must sign up for Medicare within eight months to avoid serious penalties when you enroll.
Selling Medicare Supplement plans is a booming business. Medigap plans were enrolled close to 12.6 million American seniors in 2016, up six percent from 2015.
The sale of Med Supplement plans or Medigap is doing well with not signs of slowing down. In fact, the most recent Healthcare Business Strategy report, authored by Mark Farrah Associates’ (MFAs), Medicare Supplement plans paid out $21.7 billion in claims in 2016 and earned $27.9 billion in premiums.
The most popular Medigap plan was Plan F, which is considered to be one of the most comprehensive policies available on the market today. According to MFAs figures close to 7 million people enrolled in Plan F representing 55 percent of the market. However, in 2020 Plan F will no longer exist as an option for newly eligible Medicare recipients thanks to the Medicare Access and CHIP Reauthorization Act of 2016 (MACRA). A second Medigap plan that grew in popularity was Plan G, registering a jump of 364,000 members in 2016.
American seniors could always rely on the Medicare program to help them stay healthy, while allowing them to choose plans that suit their lifestyle and budgets. However, the future of Medicare is uncertain. While on the campaign trail, Trump stated that he would not cut Medicare or Social Security. However, the budget director Mick Mulvaney, told a conservative radio host that he is looking for ways to reform Social Security, Medicare and Medicaid, working around President Trump’s campaign trail promise to leave the programs untouched.
Medicaid may face significant changes and become a block-grant program where each state gets a fixed sum of money from the federal government, which may be a smaller amount than what they receive now. At present, the amount of money a state qualifies for is based on how many people are enrolled in Medicaid.
Currently, according to figures presented to the Senate Budget Committee by Mulvaney, the national debt has risen up to $20 trillion, and without reining in social programs such as Medicare and Social Security the debt will continue to grow. Mulvaney advocates core fundamental changes, such as increasing the retirement age and trimming Medicare benefits for wealthier recipients under the age of 55 to help reduce the burgeoning debt.
Last week, President Trump’s proposed budget landed on Capitol Hill. The plan cuts Medicaid, welfare, food stamps and the social security disability program. Trump’s budget, however, faces opposition from both parties and will likely not become law.
Posted on Friday, June 16th, 2017. Filed under
Medicare.
