The Medicare Policy Switch

There comes a time in just about everyone's life when they give some consideration to switching Medicare policies. This may be done, but the timing needs to be right.

If the Medicare policy an individual has is working well for them and they don't really have any major problems, there isn't much of a percentage in switching policies. However, if that same person has had nothing but problems with the coverage not being what they want, the service the insurance company offers and the rates are too high – it may be time to think about switching to another policy.

Although anyone may change their policy if that is what they want to do, it is not a "right" and it really needs to be done while an individual is in their six-month open enrollment period.

Before pulling the plug on one policy, it only makes good sense to shop around first and speak to a qualified insurance broker about the changes that might make sense to suit a changing lifestyle. Make sure the benefits between what exists now and what is under consideration are thoroughly compared. One of the first things to check is the rates to see if the new company is offering lower ones.

Comparing policies is the easy part, because Medicare is the same right across the nation, it won't matter what state it's purchased in. However, it will matter which insurance broker has the better price. Right now there are still 12 plans on offer, with the letters A through L. Again, all these plans are the same as well, so all a person needs to do is find a price that suits their budget.

If, after doing some price comparisons, the decision is made to switch carriers, don't make the mistake of canceling the existing plan until its certain the new company will accept the business. There will likely be the usual gamut of health questions and the poking about in one's medical background first. Keep in mind the new company does not have to accept new business if they find anything that concerns them. If they do accept the new business, then the old policy may be canceled.

A quick tip here for those who aren't sure they want to keep a new policy after all. There is a 30-day period to decide if the switch to the new policy fits the bill. This is referred to as the "free look" period, and it starts when a person gets their new Medicare supplement policy.

For those who have had their first policy for a period of less than six months, the new insurance broker might insist on a six month wait for coverage on pre-existing conditions. On the other hand, if the policy was in effect for more than six months, any new ones will have the same coverage with no waiting period.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

The Difference Between Medicare Insurance and Medigap Insurance

Confusion is a four letter word when it comes to trying to figure out the difference between Medicare insurance and Medigap insurance.

There is a fairly common tendency for people to lump Medicare and Medigap insurance together, but they are actually two different plans that do two different things. So it's best to know the differences before trying to select what is needed for coverage.

Medicare insurance is a government-sponsored program that a person is eligible for when they reach 65 years of age or have Medicare due to a disability. All of the coverage is standardized, in other words, it's all the same for each individual, unless they want to change something. This is where the differences come into play. If a person wants to add something to the basic Medicare insurance, they need to buy Medicare supplement insurance.

Of course, if the standardized version of Medicare suits a person's circumstances, there is no need to get Medicare supplement insurance. That is as rare as hen's teeth though, as most people need their health benefits tailored to meet their circumstances. So, the deal is that Medicare supplements do just that – supplement the main Medicare program. Don't get confused here by the term Medicare supplement insurance, as it's just another term for Medigap, simply because it fills in the "gaps" the main program leaves open.

The usual difficulty becomes what Medigap plan will work the best, and provides the greatest coverage. This isn't something that a lot of people like to try and do on their own because they find it too confusing. This is where an expert insurance broker comes into the picture. Find a broker with a sterling track record to assist with making the right choices for each person that requires coverage. Finding one that truly understands all the ramifications of each different situation is precisely the answer to a Medicare insurance shopper's prayers.
Be aware that when requesting quotes for various options, the results will overwhelm the inbox on the computer, or the snail mailbox. This of course means hours of comparison work and this is where most people opt to speak to a trusted insurance broker to help them whittle down their extensive choices. It's best to deal with brokers who have a large number of insurance companies on board, because this will ultimately provide everyone with what they need.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Reduced Prescription Costs for Seniors Soon a Reality

The good news for seniors in America is that pharmaceutical companies have agreed to cut the prices of prescription drugs for seniors.

It's quite the landmark announcement to say the least, that seniors will be able to take advantage of lower prescription drug costs in the near future. This thanks to a recent announcement by President Obama. The behind the scenes story has to do with the Association for the Advancement of Retired Persons (AARP) working a deal with Big Pharma to implement the cuts. What this means for seniors (those 65 years of age and older) is significant assistance meeting their Medicare prescription drug costs.

Just recently, a survey was released that indicated seniors would have to do some serious revamping of their retirement funds to make all the projected health costs for the future. This newest announcement has added a ray of hope to that scenario by lowering Medicare prescription drug costs for seniors. It couldn't come at a better time when there are also some significant changes coming to the Medicare and Medigap plans in 2010.

Comprehensive health care reform, while a large task, may be accomplished in small steps, like this one. Certainly it will mean a significant break for seniors who are on Medicare and have Medigap coverage and Medicare Part D prescription drug coverage. Being a senior and living on a budget is difficult enough these days in a recession. Trying to budget Medicare and Medicare supplement insurance premiums is even more arduous.

The idea behind this announcement is that seniors will likely see their prescription drug expenses cut in half – a compelling and motivating step towards changing the face of health care for older Americans. While Big Pharma has never really been a friend to the Medicare system (largely because of the high costs of drugs), the time has come for everyone to put aside their various agendas and make a difference to the community at large. It goes without saying that Medicare recipients overall will certainly benefit from lower drug costs.

Richard Cantu is with Medicare supplements resource, GoMedigap.com. To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

You'll Need More Money for Future Health Care

If you're 65 years of age or over, you might need to seriously re-evaluate your retirement funds to see if they will cover future health care expenses.

It's a no brainer that the costs of health care in this country are going to continue to increase. It's inevitable. So, what that means is even if Medicare and Medicaid do have lower premiums when the change in programs comes in 2010, you'll need more money to make your increased health care costs at some point in time. Traditionally, health care costs have shot up at twice the rate of general inflation.

While this may seem right off the wall, it actually isn't given the current state of the economy and the rising costs of getting medical services. If you retire this year you may need up to $378,000 in savings just to meet the demands of your insurance premiums and out-of-pocket expenses. Quite eye opening isn't it? By the way, this particular figure is for a male; a female's calculation would have to be even higher simply because they live longer. How high? As high as $450,000. Sound like a lot? Perhaps, but health care usually represents 12% to 14% of expenses for seniors.

Salting away that kind of money might be a tad difficult to ensure you have enough coverage for the rough spots life throws at you. You could of course, shoot for a lower amount and take a risk that you have a 50/50 chance of having enough funds to cover health care bills. It's a tough decision to face when you hit 65 and think you have things under control.

What happens if some people retire first before becoming eligible for Medicare? Many of them think they can apply for Medicare early, just like they applied for Social Security benefits, but that isn't the case. What this means is that they will need more money to cover the gap between retirement and their 65th birthday.
So really, what are the options if you want to save that kind of money to ensure you have coverage later in life? Plan your retirement and what kind of health care benefits you will need well in advance with a qualified, knowledgeable insurance agent. There are so many different options available out there, that one should suit your situation.

Make retirement plans early, be smart and save aggressively like a squirrel storing nuts for the winter, work longer hours if you need to for the extra money and take care of yourself to reduce the number of problems that might crop up in later life.

Make it a point to know what Medicare covers, ask questions about Medigap (the insurance companion to Medicare), know how Medicare Part D works to your advantage, check out the prescription drug plan, and ask about long-term care. Knowledge is power and that power will help you redefine what you may need for your future health care needs.

Richard Cantu is with Medicare supplements resource, GoMedigap.com. To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

More Medicare and Medicare Supplements Misconceptions

It's amazing how many people think they can only switch Medicare supplements during the anniversary enrollment period of November 15th to December 31st. This isn't the truth. The reality is that they can switch at any time during the year, so long as they are medically qualified to do so. So make sure that detail is taken care of before trying to switch over.

In other surprising news, Medicare Advantage plans are losing their appeal from the point of view of the government. Well Care and Coventry, two big names in Medicare health insurance, will no longer offer Medicare Advantage as of 2010. They will be totally out of business, as they can't afford to offer the Medicare Advantage plan any longer. Why? The reason is because the government is reducing funds paid out to companies offering Medicare Advantage.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Medicare Supplement Realities

It's always best to be cautious about applying for the various benefits older people are entitled to, as many of them have certain restrictions or qualifications that those applying don't know. This is where you take the time to always check the requirements and never assume anything. When in doubt, contact a local Medicare insurance agent who has the inside information.

It's a lot easier to find out what the real scoop is than to find out at the last minute that what you assumed was the case (that you could possibly get Medicare at age 62, like Social Security) is a myth and you have to wait three more years and pay out a lot of extra money for insurance.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Read Your Policy

We tell people this all the time, "Read your health insurance policy and make sure you are getting what you think you are getting." Unfortunately many people just take the policy home and put it "someplace safe" and forget about it until they need it.

Most often these same people won't have any problems until one day when they hit the wall regarding something they thought they were covered for, and it turned out that they weren't. That meant they were forking out bucks for medical care and not happy about it. This could have been avoided if they knew what their policy really covered.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Medicare and COBRA or Private Insurance

If you've tried to get Medicare at 62 and found out you have to wait until you are 65, think COBRA. COBRA offers temporary continuation of health coverage at group rates. While this may be less expensive than private insurance, it is still a lot higher than those living on a budget may be able to afford. If you're thinking of buying health insurance from a private health insurance company, you may be facing up to $300 per person per month for coverage until you turn 65.

Do the math! For a single senior at age 62, the amount of money they would need to hand out to have health insurance would be up to $10,800 for three years or double that for a couple. Living on Social Security benefits and a pension may not allow people to find that kind of extra money.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Medicare Misconceptions

One misconception is you can get Medicare and Medicare supplements at the age of 62, just like applying for Social Security.

Nope – you can't do this. You cannot get Medicare and Medicare supplements at the age of 62. Don't make the mistake of planning your retirement thinking you have those supplements to go along with Social Security. If you do this, you will find yourself stuck between a rock and a hard place.

You are only able to get Medicare and Medicare supplements when you turn 65, no earlier. The problem is people are assuming, without checking, that because they are able to get Social Security at 62, that the same is true for Medicare and Medicare supplements.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Medicare and Early Retirement – Check Your Facts

We've seen many cases of couples and individuals who took retirement early thinking they'd have not only Social Security, but also Medicare to help defray the expenses. Unfortunately, those same individuals have found themselves in a real jam having to try and find other insurance to fill in the gap until they reach 65. You just can't get Medicare at 62, no matter what anyone tells you.

While sourcing other insurance isn't usually a problem, the price of the insurance, if you're 65 or over, is another matter altogether. In most instances you'd need the Consolidated Omnibus Budget Reconciliation Act (COBRA) or to buy health insurance from a private insurance company. Always ask your local Medicare insurance agent the real facts.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.