Choosing a Medicare supplement plan can be difficult. With so many different plans and options to choose from, it’s easy to get overwhelmed. You may be feeling stressed or unsure of what to do next.
Sure, this is not your area of expertise and it can be hard to make sense of all the information out there. That’s why here are tips to keep in mind when choosing your Medicare supplement plan. Now you’ll know what questions to ask, how much coverage you need, and which companies are most reputable for their plans.
What To Know About Medicare Supplement Plans
Medicare supplement plans are designed to supplement Medicare coverage, but not replace it. This is why you need to know what your current needs are and what your medical history is. This will help ensure that you choose the Medicare Supplement plan that best fits your needs. There are four types of Medicare Supplements:
- Medigap Plan F
- Medigap Plan G
- Medigap Plan N
- Coordinated Care Program (CMP)
Choose The Right Medicare Supplement Plan
Choose a company with a good reputation. Make sure the company has been in business for at least 5 years and is an A+ rated company with the BBB.
Decide how much coverage you need. It’s important to know the difference between actual cash value (ACV) and replacement cost (RC). ACV is the amount that would be paid if your item was stolen or destroyed. RC is the amount of money it would take to replace your item if it was stolen or destroyed. If you’re not sure which one you need, ask your agent!
Ask about what services are included in each plan. Some plans offer more than others so make sure to ask about things like dental, vision, and prescription coverage before you sign up for a plan that doesn’t have these benefits covered.
Ask about any limitations on how often you can see specialists and visit out-of-network providers under a particular policy. Many plans limit how often you can go to specialists or out-of-network providers which means they are less likely to cover expensive procedures or services.
This can result in higher medical costs for you or your loved ones so it’s important to know where this limitation stands before signing up for a plan that offers this limitation as a provision of their coverage.
How Much Coverage Do You Need?
The first thing you need to do is figure out how much coverage you need. This may seem like an easy question, but what if you have a spouse, family members, and parents who are also eligible for Medicare? You’ll need to add up all the people in your household and then compare that number to the plan’s maximum limit. If the plan doesn’t offer enough coverage, you’ll want to find another one.
When determining how much insurance coverage you need, keep in mind that Medicare only covers 100% of your medical expenses while you’re in the hospital or if you have very expensive surgery. Anything else will be up to your supplemental insurance company to cover.
Consider what your dependents need for coverage. If they are under age 65 and are on Medicare because of disability or end-stage renal disease (ESRD), their Medicare Part A and B premiums as well as their coinsurance, copayments, and deductibles will be covered by Social Security Disability Insurance (SSDI) or SSI benefits.