Medicare benefit plans consist of two main options.
Medicare supplement insurance fills in the gaps that original Medicare does not pay. If it is a Medicare-approved (legitimate) claim, then the Medicare Supplement insurance will generally pay what Medicare will not.
Depending on what Medicare Supplement plan letter is selected, the Medicare Supplement Insurance policy may pay 100% of the costs or may have a deductible. One plan even has a deductible and a co-payment option for going to a doctor for an office visit.
It is important to find an agent with experience and always current education on Medicare supplement options. You can contact us at 612-618-0476 for the options available to you.
The other main option for Medicare beneficiaries is the Medicare Advantage plan. The Medicare Advantage plans are federally subsidized insurance plans that often include co-payments for every service, including very high co-payments of hospital stays. Another unique requirement of most Medicare Advantage plans is the restriction on using the plan’s network of doctors and hospitals. Most Medicare Advantage plan types impose restrictions on going out of their network that could result in 100% of the cost being paid by the member.
Medicare Advantage plans usually offer, what we call teaser premiums. Sometimes they’re as low as $0 per month. The cost is felt when services are utilized. Hospitalizations on Medicare Advantage can cost up to $300 per day in the hospital. So, a typical hospitalization could cost a Medicare Advantage client $1,800.
If you are on a Medicare Advantage plan, you could purchase a hospital indemnity policy which can help to pay those high hospital co-payments when they occur. Such a plan can prevent the financial shock of a $1,500 to $2,000 payment required all at once upon discharge from the hospital. Having an indemnity policy for these unexpected bills can provide peace of mind with a Medicare Advantage policy.
A senior client can only sign up for a Medicare Advantage plan, or decide to change plans, from October 15th to December 7th for the following year’s starting effective date on January 1. Conversely, Medicare Supplement plans can be changed or enrolled any day of the year, as often as you wish.