A Medicare supplement plan is suitable for individuals faced with different health challenges or for anyone who has a family history of health problems or is faced with a medical situation currently that will need continuous visits to the specialist, doctor, or clinic. Why Well, if you choose a Medicare Advantage plan and you have health problems (and let’s face it, we’ll never know what our health will be in time to come), your continuous trips to Medicare supplement plans will add all the co-payments you have to pay. The fact is, there is always a maximum cost with a Medicare Advantage plan that is usually $4000 to $6,000 a year. In a general sense, a Supplement is a predictable cost policy.
On June 1, 2010, the Medicare Supplement Market looked completely different. That was the government-designated date when all companies that sell Medicare Supplement plans had to comply with the modernized Medigap table. Most significantly, this modernization adds two new plans to the combination of Medicare supplements available, Plan M & Plan N. The two plans promises to be genuine options for current and existing policyholders: will they be right for you?
Supplements fill in the gaps left by Medicare. Generally, you do not receive additional benefits such as dental, vision, or gym memberships. Therefore, you must determine the importance of these ancillary services compared to the freedom and level of coverage offered by the supplement. Medicare supplements do not include Part D drug coverage. You must purchase a separate drug plan and you will still be subject to Part D enrollment periods. Whether or not the plan fits your budget, obviously, it’s a huge factor. But that said, there are Advantage plans with higher premiums than Plan N.
Can you afford some small direct costs (such as the $135/year deductible for Medicare Part B) in exchange for lower premiums? These lower level plans, such as D and G specifically, do not cover the Medicare Part B deductible of $135/year (for 2009). What this means is that the first $135 charged per year for Medicare Part B charges (fees and medical services) will be your responsibility. A simple mathematical calculation should help you decide if your lower plan premium savings will offset this $135/year charge. Obviously, if you’re saving $20/month on your premiums, you’ll get better financial results over the course of a year by adopting one of the lower level plans.