Good morning all,
I certainly hope all is good in your world. Today, I want to conclude the breakdown of Medicare. This is intended for people turning 65 or going onto Medicare, or for people interested in finding out more about Medicare because of the Medicare for All chatter going around. This is not a political statement, I have no use for either party nor does it address the overall cost to us as a country.
Medicare Supplements will pick up some, most, or all of the costs that Medicare A & B do not cover. There is no supplement for Part D the drug plan. These plans work with Medicare therefore if your doctor accepts Medicare, then your Supplement will be accepted. There are no networks to worry about. If you decide to go with a Part C or Medicare Advantage plan you will not need a supplement because you have given up your rights to Medicare for the year. It is illegal to have a Medicare Supplement if you have a Medicare Advantage plan.
All of these plans have an additional 365 days in reserve for inpatient hospitalization.
If you choose a Supplement you will have Part A, Part B, the Med. Supp., and Part D.
If you choose a Medicare Advantage Plan, you will pay for Part A, Part B, and the Part C. There are certain plans that will require you to purchase a stand-alone Part D plan. Most people get a plan with the drug plan included.
With all that being said, here is a quick breakdown of the Medicare Supplements, or MediGap, plan. These are the most popular options and one that will be popular very soon.
Plan F is going to cover all the Part A & Part B. You will not have any copays or deductibles. These plans are pushed as the end-all be-all of Med. Supps. This is not true. If you are 65, then you will spend on average $30.00 to $50.00 per month more than a Plan G. If you are under 65 and coming unto Medicare then it is going to depend on the state you live in. Certain states do not require companies to offer All Supplements to all people. The other issue with Plan F is it is going away after Dec. 31, 2019. If you are new to Medicare as of 01/01/2020 you will not be able to enroll into a Plan F. They want you to have skin in the game so to speak, pay a deductible. When the change occurs you could be looking at a double-digit rate increase. The reason being- the only people enrolled in a Plan F will be older and sicker, so they will use it more.
If you live in a state that has a Plan F for someone under 65 you will pay at least $300.00 per month. If you are 65, depending on the state you will be looking at a monthly premium of anywhere from $130.00 to $190.00.
Plan G is going to work the same as a Plan F, except with a Plan G you will be responsible for the Part B deductible, $183.00 for 2018. Plan G is the most popular plan on the market currently. This plan gives you the most bang for the buck. As I stated above you will save $30.00-$50.00 a month opting for a Plan G versus Plan F. If you take into account the Part B deductible you are still going to save at least $180.00 in the first year. That number will increase every year.
Once again, if you are under 65 Plan G might not be available in your state. If you are turning 65, a Plan G will be anywhere from $90.00 per month up to $180.00. The rates are area specific; a Plan G is going to be less expensive in South Carolina than it will be in Florida.
Plan N will cover all of Part A. If you have a Plan N, you will owe the Part B deductible, $183.00 for 2018.
Another thing to consider with Plan N then when you go to the doctor you will have a copayment up to $20.00. If you go to the emergency room and are not admitted into the hospital you will have a copayment up to $50.00.
Here is something that is very important about Plan N; it does not pay the Part B excess. The Part B excess occurs when a doctor does not accept Medicare assignment. These doctors are allowed to bill 15% above the Medicare-approved cost. 95% of the doctors and hospitals accept Medicare assignments. It is not a common occurrence, but it does happen. So please be aware of the Part B excess. I speak to people all the time who are under the impression the only difference between Plan N and Plan G is the copays, this is not the case.
Plan N is not available in all states to people under the age of 65. If it is in your state, you will be looking at a rate of anywhere from $160.00 per month to $215.00 per month. If you are 65, you would be looking at a monthly premium of $75.00 all the way up to $120.00, depending on your area.
Plan D is a combination of Plan G and Plan N. This plan is starting to make a comeback due to the changes to Medicare. Plan D has no copayment when you go to the doctor or emergency room like a Plan G. It will not cover Part B excess just like the Plan N. If you were Goldilocks and Plan D, G, and N were the three bears, for a lot of people Plan D would be the baby bear.
Right now the pricing on a Plan D is about $15.00-$25.00 more per month than a Plan N, as this Plan gets more popular the pricing will be more aggressive. The thing to consider is how often you go to the doctor. If you are going to the doctor multiple times a month then the Plan D would be better than the Plan N. It is important to talk with your agent and make sure you are dealing with someone that knows Medicare inside and out and wants what is in your best interest.
Thank you for reading and please give me your feedback. If you have any questions please give me a call or shoot me an email. I promise we will have a conversation; you will not have to listen to a pitch.
As always do something nice for someone today, just because.
All the best,
Randall J. Lawson
The HgO Group
National Producer Number #9276045
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