Medicare Supplement Insurance (Medigap)? The Basics of Supplemental Health Insurance
2021 Medicare Supplement Plans - View Plans & Prices Online
Currently, most of the American population is living paycheck to paycheck across all economic statuses which leads to a lack of sustainable emergency funds and high supplementary insurance deductibles. A question of “How can I qualify for supplementary Insurance?” comes up frequently win planning for a secure future. There are so many supplementary details and choices that it could be overwhelming which is why being a little hesitant to apply is normal. After all, five years down the road you want to be equipped with an affordable premium, full coverage, and stable rates.
Examples of Conditions Covered Under Supplementary Insurance Policies:
- Heart Attack
- Life-Threatening Cancer (Effective 90 days after diagnosed)
- Loss of Speech
- Major Transplant
- On the job injury
Do I Need Supplementary Insurance?
Primarily supplemental plans can provide protection and security to individuals who are employed at the time that the insurance policy is issued. It is important to mention that if the individual becomes unemployed the coverage does not go away. In addition, supplemental income pays on top of workers compensation in cases of injury or accident. Employers provide accident plans as a security for industry marketplaces and employers. Similarly, accidental plan benefits, excluding coverage for illnesses that occur with accident and sickness, provide monthly supplements for people with incomes based on a minimum of $15,000 a year.
How Can I Qualify For Supplementary Insurance?
Let’s say you are turning 65 soon and coming into Medicare. Now you have some decisions to make! If you are 65 and older and already have Part B and your standard insurance plan (Part A) it may be time to apply or reanalyze your coverage policy. Look at it as if you are about to turn 65 again! Making the right decision early will help you prevent costly financial risk in the future. This is why it is very helpful to understand the best supplementary insurance plans for you and your family. There are 10 supplementary insurance plans to choose from including one alternative Plan F High Deductible or plan F HD but we are not going to go through all of them as we all are aging by the minute!
The Plans You Should Focus On For 2020-2021
- Plan F
- Plan F HD
- Plan N
- Plan G
The first thing to mention is that Plan F will be no longer available by 2020. It’s easy for insurance companies to suggest this plan as it is a popular option covering 100% of all medical cost. In perspective, this is not a great coverage plan or financial investment, which is what insurance is supposed to be. Your premium cost is going to be higher than average if used on the average basis. Plan F is similar to a credit line. Having the full credit line doesn’t mean you should use it all the time at its full disposal because it will lower your credit score and increase your interest rates. Similarly, Plan F tends to be used more than it should which causes the premium and monthly to fluctuate frequently. This knowledge is for your mental archives because as stated before if you are turning 65 years old or just now coming into Medicare you will not be able to choose Plan F. If you have Medicare you will stay on Plan F. Choose this option if it is the only choice available.
Plan F HD
Medicare Plan F HD stands for Fair High Deductible. A lot of people have not heard of Plan F HD but it is available and works well in those states where insurance is higher than the standard costs of supplementary insurance plans. Plan FHD is a good decision if you live in certain area codes like Florida and New York because of the lower premiums. Having a $2200 deductible brings premiums down dramatically which means you are going to come out ahead every year by paying lower monthly rates leaving money and time for you to save and invest. If your quote for Plan F HD is $1300 less in premiums, then it makes sense to take on the $2200 deductible with payments as low as $64 per month. Plan F HD policy is not popularly suggested because it would not make an insurance agent a profit. If you have an insurance agent call them and ask them for quotes on a Plan F HD if you think you are in a state that charges higher insurance rates.
Now we are getting into clarity with Plan G. Plan G is the best supplementary insurance plan because it keeps your policy simple and you know exactly what coverage you have to remain stable in your future. What makes Plan G the better choice is that it provides exactly what Plan F provides which is the 100% coverage but doesn’t cover Plan B with the $183 annual deductible. Its sounds contradicting but the loophole to this statement is that the cost for Plan G is always less than $183 in premium annually. That’s a better value, saving you and your family more money!
Plan N /Medigap
Plan N or Medigap will reduce your supplementary insurance premium enough to create small and manageable out of pocket cost like Part B Coinsurance. This plan does not include the $183 annual premium in Part B. But with Plan N’s deductible pays 100% of the coinsurance with the exception of co-payments of up to $50 for emergency room visits. Yes. This sound slippery but let’s talk about it. Does every day or week require the average person be transported to the emergency room? For a relatively healthy individual $50 for occasional accidents and illnesses is not that expensive. The Plan N policy also states that a co-payment can cost up to $20 for some office visits. The key words here are “up to” meaning maximum amount charged and “some” as in not every time you visit. These out of pocket payments are for visits that you make because you want to talk to your doctor on the account of feeling less than spectacular or you just want to get a checkup. Paying $20 or less for a doctor visit is a very low and convenient cost for most people and the Plan N premium reflects these cost very well.
Plan N Part B Excess Charges
The other alerting limitation listed is that there are Part B excess charges which are charges that are in some states where supplementary insurance plans are higher. Sounds horrible right? Don’t be too alarmed, remember, we recognized the list for states with higher insurance costs consists of about seven out of fifty states. Generally, those states may be Pennsylvania, Vermont, Connecticut, New York, Minnesota, and Massachusetts. Prospectively, if Plan N is quoted at $25 or less for annual premiums than your quote for Plan G then take it!
Companies That Provides Supplementary Insurance
To further answer the question of “How can I qualify for supplementary Insurance?” When you are searching for a supplementary insurance you want to do a claim process with a trusted reputable and strong company. One that has been sustainable for a long time. At the end of the year, multiple insurance agents are working to secure a contract with you but please be patient and diligent in searching for the company and plan that fits you. Making sure the insurance agent you are talking to is knowledgeable in all of the insurance plans is possible by simply asking them to go through each and every plan. This will ensure you that companies that provide supplementary insurance are looking for the best plans for you and not providing you with only popular plans. Below are companies that provide supplementary insurance:
- UnitedHealthcare Medicare Solutions
- Blue Cross and Blue Shield
- Continental Life
- Manhattan Life
If time permits it and you are patient enough supplementary insurance companies have online assistants that can provide an immediate quote for plans available depending on your area code. Most insurance agents come from the popular insurance companies listed above but there are more companies locally and nationally so don’t limit your options. The important part is that the companies insurance agent offers and explains every supplementary insurance plan in detail for your best interest.
Can I Combine Supplementary Insurance
Supplemental insurance is additional insurance coverage for the non medical related cost associated with accidents, injuries, and illnesses. Primary insurance, Part A, B and sometimes C is designed to pay a portion not related to personal necessities such as rent, mortgage, utilities, feeding your children, and unexpected cost in healing. It is evident that no two individuals are the same and everybody needs different aids so when you ask yourself “Can I combine supplementary insurance?” the answer is yes. There are disability insurance and critical illness insurance in the life insurance policy itself. All the policies are bundled into one transparent and manageable policy for your financial and mental convenience. Before you turn 65 years old this combination of insurances is called synergy. Instead of owning three separate policy without costing too much, it is a strategy that protects your income. Be aware as changes in supplementary insurance policies, as they can change frequently depending on:
- Subsidies from Government /Changes in Law
- Favorable Financial Protection
- Future Changes to Plan G and Plan N
Open Window For 65 And Older Population
When you turn 65 years old all of those insurance add-ons are labeled supplementary insurance plans and become available to you in the form of premiums and deductibles. When you are older than 65 years of age and currently enrolled or pending enrollment in basic Medicare Part A and B these options are still available to you.