When first going onto Medicare, all the plans and options can be overwhelming. However with the right introduction and guidance, it’s actually much easier than it appears! Medicare, along with a Medicare Supplement Plan, provides the best dollar for dollar health insurance for the best healthcare in the world. Here are the basics:
“Original Medicare” – Parts A and B
Parts A and B will cost $99.90 per month per retiree. This cost will increase each year if there is a Social Security Cost Of Living Adjustment (COLA).
Original Medicare (A & B) covers only 80% of your health care costs, so some additional coverage is recommended. Even though you may receive dozens and dozens of packets and brochures from Insurance companies, your additional coverage really boils down to just two basic options:
- Medicare Advantage
Medicare Advantage is an HMO/PPO style of coverage that is very similar to the employer-based plans that most people have before Medicare. With Medicare Advantage, there are co-pays and deductibles for all medical services along with doctor and hospital network restrictions. With these plans, a drug plan is included. Typically, Medicare Advantage costs less than Medicare Supplements (MediGap)
- Medicare Supplements (MediGap)
MediGap policies simply cover the gaps in coverage that Parts A and B leave open. There are typically no co-pays or deductibles and there are no doctor or hospital network restrictions. Also, MediGap doesn’t cover drugs, so typically a Medicare Part D drug plan is needed.
Note: The above information is very basic. Behind these basics are a plethora of exceptions, variables and nuances lie behind these basics that couldn’t possibly be included in this summary. Please call our office for further details or specific questions.