Medicare

There are two parts of Medicare. Part A and Part B. You qualify for Medicare the 1st day of the month you turn age 65. If you paid Medicare payroll taxes for 10 years you will receive Medicare Part A without a premium. You will also be eligible to enroll in Medicare Part B. Most people have to pay 25% of the cost of the Part B premium.

Medicare part A pays your hospital bills. Medicare part B pays for your doctors and other outpatient medical services. Medicare part A and B will not pay all medical bills. There are co-pays and deductibles every step of the way. That’s why many people who have Medicare A & B also choose to buy a supplement to fill the gaps.

There are 10 standardized Medicare Supplements to choose from. Many clients purchased a plan F when they qualified for Medicare. Plan F covers 100% of all Medicare co-pays and deductibles. Medicare A & B with a plan F supplement is the, “no surprises”, Medicare solution.

Since 2020 new Medicare participants have not been allowed to buy a plan F their first year of eligibility. Many are choosing a plan G which has all of the benefits of plan F except one small annual deductible.

There are dozens of insurance companies approved by Medicare to offer standardized supplements. Because Medicare pays first, they receive all the bills and make all the decisions. Medicare pays their part first and tells your supplement company who to pay how much to pay and when to pay. With Medicare making all of the decisions the only difference between supplement insurance companies is their price.

Advantage plans are not Medicare supplements. If you have Medicare A & B you can choose to enroll in an Advantage plan. In exchange for the money the government would have given Medicare the Advantage plan insurance company agrees to take responsibility for your medical bills. Once enrolled in an Advantage plan your insurer makes the coverage and payment decisions. Advantage plans do not pay 100% there are copays and deductibles. Unlike Medicare A & B you cannot buy supplemental insurance to cover the gaps in an Advantage plan.

At Retirement Solutions we are dedicated to finding you supplemental insurance to fill the gaps in Medicare A & B for the least amount of money. You can change supplemental insurance carriers anytime of the year, you do not have to wait until the fall. If you are paying over a $100 a month for your Medicare supplement you are probably paying too much.