A new service helps seniors explore the average cost of supplemental health insurance and find the lowest cost plans and carriers in their area, without giving up their personal contact information.
If you have ever tried shopping for Medicare supplement insurance online, then you're already familiar with the frustration most seniors feel when the price information is block until you give up your contact information. At least one online information service, MedicareWire, is pushing back on this abusive practice a free Medigap rate comparison service. The new service helps people explore the average cost of supplemental health insurance for seniors and find the lowest-cost Medigap plans available.
More information can be found on this MedicareWire.com page.
The new rate analysis service is the latest in MedicareWire's expansive range of free services designed to help seniors and those with qualifying disabilities. The team at MedicareWire explains that the new service shows seniors the average cost of Medigap insurance in their area, while helping them identify the carrier with the lowest monthly premium.
Designed to help fill the coverage gaps in the government’s healthcare program, often called Original Medicare, Medigap plans are generally considered the premium health insurance option for seniors. But most people find these types of plans difficult to understand and more costly than their Medicare Advantage alternative. Compounding the issue is a lack of price transparency. Most insurance carriers will not disclose their premiums until they capture a prospect’s personal information.
The experts at MedicareWire.com warn that even though Medicare Advantage plans may appear to cost less, particularly those with a zero-dollar monthly premium, many plans have an out-of-pocket limit as high as $7,550 per year, and the cost of hospitalization can be excessively high.
MedicareWire says the confusion over the true cost of original Medicare and a Medigap plan vs. a Medicare Advantage plan is responsible for many beneficiaries making bad coverage decisions. The confusion is caused by a general lack of understanding of shared costs with Medicare Advantage plans.
With original Medicare and a supplemental policy, the majority of a beneficiary's major medical costs are paid in advance through monthly premiums. Conversely, with a Medicare Advantage plan, beneficiaries pay the lion's share of their costs when they use health care service.
In its analysis, MedicareWire shows that more than half of all Medicare Advantage plans charge in excess of $1,500 for a 5-day hospital stay, while original Medicare, without additional coverage, costs just $1,452 (2021 Part A deductible). This cost is for inpatient hospitalization services alone and does not include the copay and coinsurance costs for the beneficiary's physician, lab services, diagnostics, medications, and more.
Most Medicare Advantage plans include a prescription drug plan (Part D) and may include other features lacking in original Medicare, including vision, hearing, and dental. But MedicareWire contends that most people are better off with à la carte coverage, citing that most Medicare Advantage plans compromise both coverage and cost.
MedicareWire demonstrates how most seniors can find an ideal balance of cost and coverage for their major medical with a Medigap Plan N policy. This plan leaves policy-holders with a small copay when they see their doctor (up to $20) or use the emergency room (up to $50), as well as the annual Medicare Part B deductible and Part B excess charges.
In most areas, MedicareWire's research shows that a Plan N policy starts at less than $100 per month. This modest cost allows seniors to budget their health care costs and avoid huge, unexpected bills in the event of hospitalization or a serious chronic health condition.
When shopping for Medicare supplement insurance, a common question people ask is, “which Medicare supplement is the best?” MedicareWire suggests that the answer to this important question is different for everyone because there are so many different factors, including where you live, your age, your health, your finances and financial goals, and your use of tobacco.
For some, the question of best means getting the most coverage. Medigap Plan F offers the most coverage possible. It covers all the cost gaps in Original Medicare. But Plan F is no longer available to new seniors. As a result, Plan G is the next best (most coverage) plan available. The good news is that the overall cost of a Plan G policy, plus the annual Part B deductible cost, generally makes Plan G a better deal anyway.
As retirees (or approaching retirement), many of us find ourselves on a fixed budget. At the same time, we may be super healthy or have a chronic condition that’s easily managed through medications and does not require a specialist.
If this is your situation, MedicareWire suggests that a Plan F or G policy might be too expensive or simply wasteful. In this case, a Plan N policy could be an excellent option to consider.
In most areas, a Plan N policy can run 20-30% less than a Plan G. Even more when compared to a Plan F. If you are a healthy senior, the monthly premium difference really adds up. Plan N is so much lower than Plan F and G because you take on some of the costs. For example, with a Plan N policy, you pay up to $20 when you see your doctor and up to $50 to use the emergency room. But, if you’re healthy, these are a rare occurrence. Plus, annual wellness exams are free. This doctor visit is covered 100% by Medicare.
If you have a chronic condition that you and your primary care physician are managing through medication, without involving a specialist, Plan N could be a cost-saving option for you, as well. It all depends on how frequently you need to see your doctor and whether you pay Excess Charges to see your doctor(s).
Part B Excess Charges are additional fees (up to 15%) that doctors charge if they do not accept Medicare-assignment. Medigap Plan N does not cover Excess Charges, whereas Plan G does. If you are not in this situation with your doctor, that’s another plus in the Plan N column.
If paying a small copay to see your doctor and not having coverage for Excess Charges works for you, MedicareWire recommends adding a Plan N to your shopping list. You can use their free rate comparison service to find the lowest monthly premium.
Full details can be found on the URL above.
