Many of our clients have asked how changes may effect their medicare supplement plan. For the most part we don’t see medicare supplements as the main target of major changes. However, Medicare Advantage plans may be a much more popular target of reform advocates.

1. Community-rated: This is where the same monthly premium is charged to everyone who has a Medicare Supplement with that particular company, regardless of age.  Rate increases occur for all ages across the board when they do occur.
2. Issue-age-rated: Here is where the rate is based upon the age you are when you purchase your policy.  The rate will not ever increase because of age but other factors such as inflation.
3. Attained-age-rated: The premium here is based upon your current age when you purchase the policy, but as you age the rate increases.  For instance if the rate of a 65 year old is $100 a month, when they turn 66 it might go up to $105 a month.  Almost all of the Medicare Supplement Policies that we offer fit into this category.

As you look for a Medicare Supplemental Policy, you can look at which category the Medigap Policy fits in and get some sort of estimate when rate increases will most likely occur.  But overall, you can’t 100% predict when they will occur.  It is similar to trying to predict if it will rain in a year.  You can look at what the weather has done on that particular day in the past, but that does not necessarily mean it will rain again.  Any agent that tries to tell you they know what rates will do in the future is lying because no agent can tell.

The most important thing to save money is to enroll as soon as you can so that you can “lock” your rate in at the age you are now.  Rate increases will most likely occur in the future, but here at Medicare Benefits Direct, we have a few different ways to help hedge those off.  The first step to helping you save money on your premiums though, is to enroll as soon as possible to get the lowest rate you can.  The younger you are, the cheaper the rate.  So give us a call at 1-800-804-4212 or fill out the form above to speak with a live professional agent and start saving today!

The new 2011 Annual Election Dates are October 15-December 7.  If you fit into the scenario above and make changes during this time, your changes take effect January 1, 2012.

**If you already have a Medicare Supplemental Insurance Policy or Medigap Policy, you can make changes to that policy at any point in time during the year.  For example, if you want to switch to another Medicare Supplement Insurance Company from the current company you have, you are able to do that at any point and time during the year.

Feel free to call us today at 1-800-804-4212 if you would like someone to speak with for assistance.  We can take the confusion out of Medicare!

Here are a couple of highlights of this article:

• Only 11% of baby boomers say that they are strongly convinced they will be able to live in comfort in retirement
• 44% of baby boomers express little or no faith they’ll have enough money when their careers end.
• 25% of boomers say they’ll never retire.
• 6 in 10 baby boomers say their workplace retirement plans, personal investments, or real estate lost value during the economic crisis of the past three years.

Looking at these statistics, baby boomers have without a doubt taken a hit from the recession.

Starting this year, the baby boomer generation is now at the age where it is time to enroll into Medicare.  With more people enrolling into Medicare than ever, there are more people with limited resources than ever.  With that being said, it is VERY important to save as much money on your Medicare Supplemental Insurance or Medigap Policy.

Let us here at Medicare Benefits Direct, help you reach retirement quicker by saving you money on your Medicare Supplement!  We are what is called an independent brokerage firm.  So we can actually do all the shopping for you.  We represent all the major Medicare Supplement Insurance Companies out there.  So we can compare plans with other companies then enroll you into the cheapest plan available.  Even though we represent a number of different companies available, we represent you as the individual more than we do those particular companies.  We have your interest first, before anyone else.

Call us today at 1-800-804-4212 or fill out the available form above to let us give you a quote on Medicare Supplement Insurance or Medigap Insurance today!

Medicare’s website, www.Medicare.gov, is a useful tool in determining your best Drug Card option.  You can input your medications and then the website will list the 40+ coverage options from “best savings” on down.  Looking at Drug Cards there is a lot to consider, and I am here to make all that confusion make sense!

Terms you should know: monthly premium, deductible, co-payment, coverage limit, coverage gap, and catastrophic coverage.

• The monthly premium (the price you pay to the insurance company before you pay for your drugs). You pay this whether or not you use the card.
• The annual deductible (a one-time yearly charge that sometimes saves money, and other times is unneeded—this can range from $0-$310).
• The co-payment is the initial coverage level for your particular medications (this is what co-payment you pay, out-of-pocket for your drug)
• Coverage limit will occur when the Card’s maximum coverage has been paid by the Drug Card (this will be for the full cost of the medication, not the discounted price you pay).
• Coverage gap (“Donut Hole”) occurs once the coverage limit has been met. Once you are in the coverage gap, your plan will cover atleast 7% of the cost of generic drugs. You will also only pay 50% on covered brand-name drugs.
• Catastrophic coverage occurs when you have paid a total out-of-pocket expense of $4,550 (in 2011) per calendar year. This would include all your expenses for medications during coverage and in the coverage gap. Once you are in catastrophic coverage, the Plan will cover drug costs almost completely.

Also, you need to note if the Mail-Order pharmacy option is cheaper for you (sometimes you can get that price at network pharmacies as well just by purchasing 3-month supplies).

Once this understood, you can then determine which of these Rx Drug Cards will cover you the best and what your yearly Prescription costs will be.

Enrolling into the program is simple: call the company of your choice and tell them you would like to enroll.  Outside of your initial enrollment, you may only enroll during one time, once each year. If you already have a Part D Drug Card for 2011, you may shop for a 2012 Rx Card beginning October 15- December 7.

The best time to buy a Medicare Supplemental Insurance policy is simple.  It is when you enroll into Original Medicare.  There is a 12 month window that starts 6 months before the first day of the month of your 65^th birthday and goes 6 months after that day. It is titled the “Open Enrollment Period.”  Within this window, you can enroll into any plan you desire, with whichever company you choose.  This is a big deal for some individuals who unfortunately have health issues and medically can not qualify for certain plans with certain companies.  As long as you are of age and can afford the coverage, there is no legal reason for the Medicare Supplement Carrier to deny you the coverage.

If you are over the age of 65 but are on a group insurance policy and are leaving that plan, this scenario is a little different for you.  There is a window that surrounds the last day of your group policy.  You have 3 months prior to your effective date in which you want the coverage to start.  Then you have 63 days after the last day of your current coverage.  Within these time periods, you can get your coverage “guaranteed issue,” just like the scenario above.

Later, I will be going over the best time to CHANGE Medicare Supplement Insurance policies, plans, and/or carriers if you currently have a Medicare supplement or are currently on a Medicare Advantage plan.

Medicaid

Medicaid is health insurance available to certain people and families who have limited income and resources.  The scenarios and guidelines for qualifying differ from state to state.  This is simply because Medicaid is a state program, while Medicare is a Federal program.  You apply for this through your local Social Security office.  People with Medicaid may also qualify for Medicare as well.  If this is the case, the majority of all your healthcare cost will be covered.

Medicare

The most common scenario for people enrolled in Medicare is typically individuals who enroll once turning 65, but this isn’t the only scenario.  There are people who are enrolled in Medicare under the age of 65, but they must have permanent kidney failure called “End Stage Renal Disease,” or be on some type of permanent disability.

Once enrolled in Medicare, you have hospital insurance (which is called “part A”) that is free once turning 65 because that is what social security has taken out of your pay check your entire life.  Your medical or doctors insurance (called “part B”) is paid for by a deduction each month out of your social security check, once enrolling into social security.

Between these two (part A and part B) with Medicare, it will pay on average 80% of all of your cost.  But with thousands of dollars of medical bills that some people are left with after a catastrophic event happens to them, 20% of medical cost can get to be extremely high amounts.  That is what a Medicare Supplement or Medigap policy is for.  It simply “supplements” Medicare or “fills in the gaps” of Medicare.  With the most common type of Medicare Supplemental policy or Medigap policy (which is called a “plan F”) you can walk away with no out of pocket cost for medical bills after paying the premiums each month.  Feel free to give us a call at 1-800-804-4212 for a free quote with a live professional agent!

The first thing to consider when looking for the right company for you is to decide which particular plan or coverage you need.  The 10 different standardized plans offered are plans A, B, C, D, F, G, K, L, M, and N.  Obviously, the outline of coverage differs with each particular plan.  Go HERE (refer to page 11) for an outline of each plan or call us at 1-800-804-4212 to speak with a live professional agent and have someone walk you through each plan.

Next, you need to consider which companies are offered in the particular area you live in.  Not all companies are offered in every area within the United States.

The last and most important consideration is price.  Years ago, the government passed a law that made every Medicare Supplement Plan “standardized.”  Standardization means that all plans are the same from company to company.  Again, this is a law and companies can’t deviate from this.  Sometimes, it seems too good to be true.  However, the only difference is price!

We encourage you to call one of our agents at 1-800-804-4212 and see how we can get you the SAME coverage much cheaper.  Fill out the form at the top of the page or contact our office today at 1-800-804-4212 for a free quote and have a live professional agent take the confusion out of Medicare.

Medicare Supplement Insurance

• No Network Restrictions:  Any doctor, hospital, or other medical provider that accepts medicare must accept your medicare supplement insurance plan.  You can choose to see any doctor in any city when you want.
• Easy To Compare Plans:  All medicare supplement insurance plans are standardized.  This means that you can be sure that plans from different companies all have the exact same coverage (plan designated by letter – C, F, N, etc…)
• Stable Pricing:  While some companies have rate increases each year, the premiums for your plans remain fairly steady.  Especially if you work with an independent agent who can shop all the best companies for you.
• No Restricted Enrollment or Change Deadlines:  With a medicare supplement insurance policy you can change your plan at any time for any reason.  You don’t have to rush around at the end of the year worried about getting stuck in a bad plan.  Of course health conditions play a factor when buying a new policy, but again a quality independent agency has multiple companies all with different underwriting guidelines.
• You Can Cover 100% Of Out of Pocket Expenses:  With certain medicare supplement insurance plans you can cover every gap left my original medicare.  No co-pays, deductibles, or other shared costs.  This makes budgeting for your medicare care very easy.  All you pay is your medicare part B premium and your medicare supplement insurance premium and everything else is taken care of.

If you have any questions about this information or would like to find out which medicare supplement insurance plan is right for you.  Please contact one of our Medicare Insurance Specialists at the number above or fill out the short Plan Comparison Form at the top of the page.