Medicare Supplemental Insurance

Posts Tagged ‘Medicare Supplement’

I have to start by saying the reason for this post has made me said, not because we were able to review an move a new client to a better program, but because she was paying over $6000 a year for just her prescriptions.

For every person there is a program that fits their needs, however when you are not placed into the proper program, you spend much more than you need to.  In an earlier post I noted that depending on the Part D prescription program that you were enrolled in, the difference in cost from the lowest cost to the highest cost averaged $3000 for the year.

Now to get to the point of my post.  A new client walked into my office this past week with her current plan details and a list of her prescriptions.  She was currently on a Medicare Advantage HMO plan which included prescription coverage.  Over the course of 2009 she spend $5980 some dollars on just her prescriptions, not to mention her co-pays and deductibles she was responsible for through her medical side of the plan.

When it was all said and done, to make a long story short, we moved her to an individual Part D prescription plan and saved her $900 dollars this coming year just on her prescription program.  (The $900 savings for the year already factors in the monthly cost of the Part D prescription program and all out of pocket cost including copays)

That $900 savings for the year broke down to $75 savings per month.

Her Medicare Supplement Plan J was going to run her $147 per month.  So $147 – the $75 savings means the net cost of her Medicare Supplement is now $72 per month

Her prior Medicare Advantage plan was charging her $20 per month just to be on the plan, plus the co pays and deductibles.

So now you take the $72 additional dollars she is spending and subtract the $20 that she was going to pay for her Medicare Advantage plan and she  is only spending $52 more per month.

THATS NOT ALL!  I must also point out that her Medicare Supplement Plan J does not have any of the hidden expenses such as co-pays or deductibles like her Medicare Advantage had.  So when we factor in the co-pays that she spent with her Medicare Advantage, she saved WAY more by moving to the individual Medicare Supplement and Part D prescription program.

The point I am trying to make here along with everyone of my post is: Just because an agent says they can get you a Medicare plan, does not mean they have access to the proper products for your needs.  Make sure you get with someone who will educate you on all your options so you can make a good decision.

Best Luck,

Travis

Here is the Press Release from AARP.

AARP has approximately 29% of the Medigap Market in terms of # of insureds.  There has been some debate on whether this endorsement has a financial incentive for AARP because of the possibility of an increase in Medicare Supplement sales.  AARP receives referal fees from United Healthcare who administers the AARP Medicare Supplement and Part D programs.

Article -> here

Let me guess, you have worked at your job for 30+ years and have never had to deal with finding health insurance because your employer always took care of it, now your coverage and help picking the plan have all dissapeared and you are out on your own trying to figure out this mess.

You Are Not Alone!

As an independent agent, I can’t tell you how many times I have heard this story.  If I had to guess I would say about 85% of the time.

There are probably a lot of things you want to do instead of learning how the health care system works, right?  You probably have an agent that you call on, who may or may not be an expert in Medicare options.  Even if he or she can provide a Medicare Supplement or Medicare Advantage plan for you, they may not be the perfect person to talk to.

How To Find The Perfect Agent To Work With?

A few suggestions to help you get started on your hunt:

1. Ask your friends or relatives who they work with, and quiz them on why they chose that person. Did they educate them on all of their options?  Did they help them understand the current economic situation and how that will impact the future of their benefits?  Do they keep in touch with them on a regular basis?
2. Check with your local Better Business Bureau. Go to http://www.bbb.org and type in your zip code to search for an agent or to check out a local agent.  I would choose one that is an accredited business, because that shows they hold themselves at a higher standard and want to prove that to you.  It does take a few years in business and establishing a reputation before the Better Business Bureau will even look at the accreditation process for them.
3. Interview that agent. Ask questions like

• Are you an independent agent?
• What types of Medicare plans do you offer?
• How many companies do you work with?
• How do you choose which companies to place your clients with?
• How many clients do you have?
• Do you have any references or testimonials?
• What kind of support will you provide me after we sign up for a program?
• What happens if my rates increase next year?
• Will my plan coverages change each year?
• Do I have the option to change plans?

When you select an agent with this process you are more likely to find one who will help serve you for the long term.  Be aware, that there is a host of new agents entering the marketplace each year who will not be around in the years to come, so make sure you find one that will stick by your side.

If you have any questions please feel free to call us at 1-888-535-0999

~Travis

With the state of our economy, and all the MASSIVE layoffs, there are many people who for the first time find themselves searching for their own health insurance for the first time.  There’s not a day that goes by, that I don’t hear “I’ve never had to deal with this stuff, and there is no good way to find information to make a good decision.” 

Being without a job makes it hard to pay for your health insurance, especially since group health coverage extended to you is typically a lot more expensive, because you have to pay the full group rate and the administration fee, you might be surprised to find that individual insurance can be more cost effective.

 Whether you are needing some health insurance until you qualify for your Medicare rights, or you already have Original Medicare, and you want a free resource to help answer your most burning questions in Missouri, Kansas or Iowa call 1-888-535-0999 and ask for Travis.

TRAVIS: THANK YOU FOR HELPING US CHOSE OUR HEALTH INSURANCE AND PRESCPTIONS COVERAGE. WE KNOW WE CAN COUNT ON YOU FOR ANY OTHER NEEDS WHEN WE NEED THEM. BEFORE I RETIRED I TOLD SEVERAL OF MY FRIENDS ABOUT YOU. THANKS! JERRY AND GARNETT RINEHART, BLUE SPRINGS, MO’

Bill H.R. 6331 made some changes to modernize the plans. Some changes, eliminations, and additions to the plans have been approved, however the states still have to addopt the changes and the companies will need to decide if they are going to offer the new plans, and if so get setup to do so.  So with the information below, please keep in mind it is estimated that these changes will take effect around June of 2010.  Information below is subject to change, and is for informational purposes only.

***NOTE***

THOSE OF YOU ALREADY ON PLAN J OR ANY OTHER PLAN BEING ELIMINATED WILL BE ALLOWED TO KEEP YOUR CURRENT PLAN, YOUR POLICY WILL NOT BE AFFECTED.  After the changes take place, the regulations will not allow anyone new to be placed into those plans that are eliminated, but those in those plans will be grandfathered in.  Call us with your concerns!

Even with the elimination of some plans, we still believe that Plan J currently gives you the best bang for your buck and suggest to get in now while you can if you qualify.   

The new regulations includes transition standards to permit companies to offer existing policyholders or certificate holders the opportunity to exchange their current policy for a new policy. Once we get closer to this time frame, give us a call and we can share the details of that process with you.

As for the NAIC Medicare Supplement Modernization Proposal suggest the elimination of unnecessary and duplicative plans:

• Elimination of Supplement plans H, I, J because these plans no longer offer the drug benefit.  The drug benefit was replaced with Medicare Part D.
• Supplement plan E will also be eliminated, because it becomes identical to a plan already available after the plan benefits are changed.

Modernization of benefits:

• The elimination of the At-Home Recovery benefit (which was offered only in Plans D, G, I, and J)
• The elimination of the Preventive Care Benefit (which was offered in plans E and J)
• Addition of a Hospice benefit as a Core benefit to every pan
• Replacement of the 80% Part B Excess Benefit in Plan G with a 100% coverage benefit

Plans M and N to be added as follows:

• New Plan M will include 50% coverage of the Medicare Part A deductible and does not cover the Medicare Part B deductible.
• New Plan N will not cover the Medicare Part B deductible and will add a new co-payment structure of $10 for each physician visit and $50 for each emergency room visit (which will be waived upon admission to the hospital)

If you are concerned about the changes in the system, give us a call so we can discuss your options.