A Medicare supplement plan is a private insurance policy sold to individuals with Medicare Parts A and B to cover a whole spectrum of out-of-pocket costs, such as deductibles, copayments, and coinsurance. It can enhance your life, providing peace of mind and financial security. However, it’s important for seniors to choose their plans wisely to avoid certain pitfalls.
This article will discuss the biggest mistakes people make when choosing a Medicare supplement plan, and how to avoid them.
Common Problems Boomers Face When Choosing a Medicare Supplement Plan
Here are some common issues to avoid:
Waiting Too Long to Apply
Your six-month open enrollment period begins once you’ve enrolled in Medicare Part B. During this time, you can buy any Medigap policy sold in your state without being denied coverage or paying additional premiums due to pre-existing conditions. Folks who wait too long can be denied coverage or may pay higher premiums for the same plan later on.
Think ahead and plan carefully to save money and avoid making a lot of work for yourself in the future.
Not Being Smart About Tax Strategies
Many senior individuals invest in Roth IRAs, retirement plans funded with tax-free dollars. Although these plans provide financial benefits, they can also put you in higher tax thresholds, affecting your IRMAA (income-related monthly adjustment amount) and leading to a higher premium and tax return. Talk to tax experts to ensure you choose a plan with a gradual conversion to avoid higher fees.
Failing to Compare Plans and Insurers
There is no clear-cut “best” Medigap plan. Prior to enrolling, you must determine which is best for you based on your healthcare and medical needs and budget. The carrier’s reputation is also a consideration, and can be determined based on reviews, financial backing, and enrollment numbers.
For example, Humana may be a good people’s choice when considering your carrier company as it is popular for Medicare Advantage patients, affordable, highly available, has generally positive reviews, and a good financial rating. However, it may not be the right option for everyone.
You must also consider what’s available in your state. For instance, Iowa Health Advantage is a popular option for people in that region. However, policies vary based on location.
Not Understanding Medigap vs. Medicare Advantage
A person considering different plans should know the difference between Medigap and Medicare Advantage to ensure they choose the one that’s right for them. Generally, Medigap works with Original Medicare and offers nationwide coverage to any doctor who accepts Medicare. Medicare Advantage plans have network restrictions and may not cover care from various doctors when you leave home to travel.
Failing to Talk to an Insurance Professional
Insurance professionals can help you find a plan tailored to your needs. They will offer expert advice, save you time, and assist you in exploring your options. A professional will also be aware of the latest news, including changing policies and plan options.
MedigapRX Can Help You Make the Right Decision
Determining which Medigap plan is right for you isn’t easy. MedigapRX can help you navigate the complex terrain and find a provider suited to your needs. Book an appointment to learn more about how we can guide the decision-making process.
FAQs
Does Medigap Cover Your Pharmacy Fee?
No, medication is not included in the Medigap plan. However, you can get coverage for your pharmacists’ service by enrolling in Medicare Part D or a Medicare Advantage plan with drug coverage.
What is the Downside to Medicare Supplement Plans?
Although Medicare supplement plans are beneficial, they also offer some disadvantages, including higher monthly premiums than Medicare Advantage, no prescription drug coverage, a lack of dental, vision, and other benefits, and the potential denial for new enrolees who apply outside the open enrolment period.