Which Medicare Plan Is Right For You?
It was Harry Truman who first introduced the idea of a national health insurance plan back in 1945. Twenty years later, Lyndon B. Johnson signed Medicare into law – health coverage for Americans 65 and older. Since then, Medicare has seen numerous changes, such as the inclusion of the disabled. Now at a time when the cost of family health insurance and individual health insurance is at its height, Medicare is once again undergoing some changes so as to better provide affordable health insurance to seniors – from doctors’ visits and hospital stays, to prescription drugs in the Medicare Part D plan.
If you are on Medicare or are interested in enrolling, making informed decisions about Medicare Advantage and Medicare Supplemental Insurance depends on you understanding the difference between them and how each is expected to change. Keep all of these elements in mind as you evaluate health insurance quotes.
Those on Medicare Advantage pay very low monthly premiums, or no premiums at all. Medicare Advantage:
Generally covers large network urban areas
Bills for co-pays and co-insurance with a maximum out-of-pocket cost
Is subject to open enrollment and lock-in periods, limiting your ability to change plans throughout the year
Must stay within network limitations
For those medical services not covered by the Advantage plan, Medicare Supplemental Insurance helps make up the difference. Medicare Supplemental:
Extends availability to outlying suburbs and towns
Covers the remainder of provider bills after original Medicare coverage
Carries no plan change restrictions
Generally carries no physician and hospital network limitation
Requires premiums of up to $200 a month
When considering Medicare’s affordable health insurance options based on these existing features, it’s equally important to consider upcoming changes.
For instance, Medicare Supplemental Insurance will eliminate plans E, H, I and J. Anyone already enrolled in these plans at the time of their elimination will be “grandfather ed.” Staying in these eliminated plans will probably mean higher rates as no premiums from new enrollees will be available to support claims costs. On the other hand, Medicare Supplemental Insurance will also see some new plans added, all of which will include a hospice benefit.
As for Medicare Advantage, they’re phasing out the difference between the Advantage Care plan rates and Medicare fee-for-services. Plus, you can expect to see a government-run Medicare Part D drug program to compete with commercial plans so as to lower the costs of prescription medications.
Whether you’re interested in applying for Medicare or are already enrolled, the sooner you re-evaluate your options, the better. To learn more, refer to the Affordable Health Insurance Agency for details and free health insurance quotes.
