Turning 65: Medicare Supplement or Medicare Advantage Plan?

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If you are turning 65, one thing is for certain — you are being bombarded in the mail or by phone calls with information about Medicare. If you are like most, you’re sitting here wondering: “What the heck!”

This video hopefully will help you decide what is the best plan for you. To keep this simple – you have three choices: Choice#1: Original Medicare #2: Medicare Supplement Plan and Choice #3: Medicare Advantage Plan

Let’s talk about Choice #1: You can choose to go with just Part A and Part B, plus a Part D drug plan and not pay for either a Medicare Supplement or a Medicare Advantage plan. But by doing so, you expose yourself to heavy expense. Without a supplement or Medicare Advantage, you not only have to pay the Part A deductible of $1,280 the first day you are hospitalized, but co-pays for each day past 60 days you are hospitalized. You also have to pay the Part B deductible of $166, plus 20 percent of all charges for Part B services. I like to tell my clients, 20 percent of $100,000 is $20,000. That’s easy to remember!

By getting either a Medicare Supplement or a Medicare Advantage plan, you give yourself a safety net. My father-in-law had back surgery a few years back. The hospital bill, alone, was $45,000. His cost: On his Plan F was $0. His Medicare supplement plan paid it all. So not going with anything other than Parts A, B and D is not a wise decision. So which way should you go?

Choice #2 – In my opinion – the Medicare Supplement route is the best way to go. The two primary reasons – It helps you stay within your budget better and normally costs much less than your other choices.

When you have a Plan F or Plan G Medicare Supplement – the plans are exactly the same benefits except you pay $166 Plan G deductible. For the Plan F – you pay the premium and that is it. Everything else is paid 100%. For Plan G you pay the monthly premium and you also pay the $166 deductible for Part B expenses. Everything else is covered 100%. Because of the deductible your premiums run 10 to 20% less.

For one of these plans, you can expect to pay approximately $125 per month, depending your age, zip code, tobacco usage and which company you go with. Also everyone is going to pay the Part B premium ($104 for most), no matter whether you get a Medicare Supplement, a Medicare Advantage plan or just stay on standard Medicare.

Those getting a Medicare Supplement have to also factor in cost of a Part D drug plan. Premiums for the Part D plan range from $20 to over a $100 per month, depending on your requirements. You will also have co-pays on your drugs. Even if you don’t need any prescription drugs, it is best to go ahead and get it to avoid the late enrollment penalties. These mandatory penalties for not having a plan could get very expensive when the time comes and you need to enroll in a prescription drug plan.

So, why go with a Medicare Supplement plan when a Medicare Advantage plan costs less in premium? Very simply – Co-pays and you must stay in your local network. With Medicare Advantage, you can expect to pay a ton of co-pays and you could have an out-of-pocket limit that could easily reach $6,700 – if you get sick or injured.

In short, Medicare Advantage works for those who don’t need to see the doctor much. They can get very expensive – if you happen to go into the hospital. Medicare Advantage plans generally charge $250 co-pays or more for the first six days. In addition, you are no longer with Medicare. You are with a private insurance carrier. The carrier determines what gets paid – not Medicare.

Typically, what happens is someone will try to get back on original Medicare it becomes very difficult. The Medicare supplement carriers will ask health questions and you may not be able to qualify for coverage. You can buy a Medicare Supplement that will pay all of your hospital expenses and have it cost less in an entire year than you would pay for a just a few days in the hospital.

If you are trying to figure out the best way to go for you give us a call first. We can advise you of the five most important pros and cons of each plan, free of charge, and give you a choice of different top rated Medicare insurance carriers. We can also help you cancel your existing insurance and help you get set up for a Part D drug plan. With health care coverage being the #1 financial concern of most American’s, receiving your benefits on time and in the proper amount is extremely important.

If we can be of assistance to you in this area do not hesitate to contact us.

You can call us at 1-800-825-2919.

You can email us at: [email protected]

https://www.youtube.com/watch?v=UtKBwIBcTxQ

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