If you’re about to become 65, you’ve undoubtedly already signed up for Medicare, or at least you’ve read the information about the application. So the first question to ask is, should you have a prescription coverage and Medicare supplement plan from Part D or should you go into a Medicare Advantage plan?
For this article, we will assume that you have already set up your Medicare. So the next question is, what now? Medicare was easy, especially because there is only one place to get it, the federal government. However, after the Medicare treatment, you are only one-third complete. Medicare covers 80% of your hospital and medical expenses, but there are two other health insurance plans you need.
Medicare Supplement insurance plans: quoted here https://www.medicaresupplementplans2019.com
The first is Medicare Supplement insurance, and it does exactly what its name implies. It complements your Medicare plan. What this means in plain English is that your Medicare supplemental insurance pays the difference between what Medicare pays, which is 80% in most cases, and pays the total of your hospital and doctoral bills.
So far everything is pretty easy to understand, right? Medicare pays 80% and your supplementary insurance pays the remaining 20%, provided you choose the right plan. But this is where the big private insurance companies come in and make it hard for the average person to understand. Each year, they have several Medicare supplement plans to choose from, each assigning them one letter of the alphabet so they can probably be differentiated. For example, in 2010, Medicare supplement plans A to N was made available, with the exception of E, H, I, and J, which are no longer available.
Medicare Part D Drug Plans:
The large private insurance companies offer several Part D plans to choose from. The difference here from plan to plan is the amount of your deductible, which can range from no deduction to $ 310. Your deductible, of course, is the total amount you need to spend yourself on prescription drugs before your insurance begin. When your deductible goes low, your monthly premium will go higher. This means that with zero deductible, you will pay the highest monthly premium.
There is also something called gap coverage that you need to understand, because after your coverage starts, either from zero or $ 310, when your total prescription drug costs reach $ 2700 per calendar year, the big insurance companies will stop payment until your entire cost for drugs reach $ 4350. Also, these figures are based on the plans of 2010 and can therefore be changed. My insurance broker has pointed out that this will become very clear when you consider the gap that needs coverage a donut hole, as it is sometimes called.
What the big private insurance companies do not want you to know
The big private insurance companies are unlikely to tell you that the government requires each insurance company to offer the exact same Medicare supplement and Part D plans in each specific state.
What this means in plain English is that Medicare supplement plans A through N, for example in Texas, must have exactly the same features of any insurance company.