Purchasing Affordable Medicare Supplement Insurance - The Agent's Role

There are several Medicare supplement insurance providers operating throughout the country. Almost all offer policies with the help of agents in order to promote enrollment and reduce overhead.

First, it is very important to understand Medicare supplement prices are controlled by law. This means that agents cannot undercut one another by offering better rates than a competitor nor can the insurance company underwriting the coverage offer a different rate than the agents they use to help enroll members. Prices are the same no matter the source so there is no monetary advantage to buying direct or pitting agents against one another.

This is why it can be wise to develop a relationship with an independent insurance broker when shopping around for Medicare supplement policies. The price will be the same, but you will also get the knowledge and experience form someone who works with several different companies.

Medicare supplement rules and regulations are uniform in the benefits provided (a Plan F is a Plan F), but there can be significant variances in price, underwriting standards, discounts, etc. between insurance companies; and there are key regulations that will differ from state to state.

An Agent's Perspective Into Medicare Supplement Insurance

Your broker plays an important role in the insurance transaction. Knowledgeable agents can provide insight into different rules and regulations in your home state.

It can be very helpful to know if your state offers supplemental coverage to those under age 65 - many do not. Or you might want to know if you are afforded an open enrollment window or anniversary each year where similar coverage can be purchased without underwriting.

One of the most common misconceptions with Medicare supplement coverage is that newer, less expensive coverage can be purchased each year during open enrollment from November 15th to December 31st. This is simply not the case. The annual open enrollment period is for changing prescription Part D plans, dis-enrolling from a Medicare Advantage plan, or changing to a new Medicare Advantage plan. It is not however a time when you can purchase a new supplement without medical underwriting every year.

There are a few states that offer open enrollment windows to Medicare beneficiaries every year when (like or lesser) coverage can be purchased without underwriting. For example, California and Missouri both offer open enrollment periods each year, but they include your birthday month and anniversary month respectively. Most other states however have no such rules and medical underwriting will usually be required.

If you live in a state without a yearly open enrollment window, then in many cases your have to be in reasonably good health to change plans. There will be exceptions to this rule as well however. Some insurance companies will relax their underwriting standards from time to time.

For example, there is one insurance company that offers Plan N with little to no underwriting. There is another that bases their eligibility on whether you are within 3 years of enrolling in Medicare Part B. There is still another that has temporarily allowed consumers to switch to like or lesser coverage with no underwriting at all - regardless of age, health, and/or any open enrollment restrictions.

Medicare Insurance Discounts and Perks

When you are enrolling in supplemental coverage, it is a good idea to let your agent know if a spouse might be joining you in the near future if s/he is not yet 65 or still employed. Some insurance companies provide valuable marital discounts that when combined will offer significant savings over a competitor.

Additionally, a few providers offer free or discounted gym memberships. This program is often referred to as silver sneakers and can help offset premiums that might otherwise be less attractive at first glance.

Additionally, some carriers underwrite to unisex rates while others have separate pricing models for males and females. And in some cases, supplement policies can be more or less expensive depending on your zip code.

As you can see from the state and insurance company specific rules and nuances listed above that the Medicare supplement marketplace is fluid. While the benefits will always be the same for like coverage no matter the carrier, most other variables can be quite a bit different - including underwriting which is one of the most important factors.

Again, this is why the agent is so important. If you are unaware of the often changing state and/or federal rules governing Medicare insurance or if you are not familiar with the many variables affecting underwriting, then you can be missing out on opportunities to enroll in more affordable coverage.

In summary, Medicare can be confusing especially if you have newly been approved for government provided Parts A and B. If you wish to purchase a supplement to fill in the general 20% gaps that are not covered, then an independent agent can be a valuable resource now and in the future.

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3 Ways To Save Money on Medigap Insurance - Part 1

If you are 65 or over and enrolled in Medicare Parts A and B, then I have some good news for you.

(at least when it comes to keeping more money in your pocket for insurance premiums!)

As you may know, Medigap Insurance ("Medicare Supplements") pay for gaps - or costs that Original Medicare doesn't pay for.

For instance, if you are a Medicare beneficiary and you go to the doctor for a visit, you will be required to pay 20% of approved fees and costs. There is no out of pocket limit if you are on Medicare.

Having a Medigap plan is a great idea to prevent large or (sometimes) even small health care expenses from ruining your retirement.

Once you know you need a Medigap insurance plan, the next step is to make sure you don't pay too much.

Of course, this is easier said than done.

With endless quotes and so-called information sources out there, it's hard to tell what's real and what isn't.

So, as promised, here are 3 ways you can save money on Medigap insurance:

Tip #1: Utilize your "open enrollment period."

Open enrollment is different for Medigap than it is for other insurance. Medigap open enrollment lasts 6 months begins on the first day of the month when you are both 65 or older AND enrolled in Medicare Part B.

Why is open enrollment important and how can you save money by utilizing it?

First of all, open enrollment is important because if you apply for a Medigap plan during this time period, the insurance company you choose cannot use medical underwriting when considering your application. This means you can't be denied coverage or be forced to wait for coverage to start because of a pre-existing condition. Basically, the insurance company must sell you any policy you want.

If you go beyond your open enrollment period, then the insurance company could subject you to medical underwriting when considering your application. You then might be denied coverage or forced to deal with exclusions or waiting periods for pre-existing conditions.

Tip #2: First discover which Medigap plan is right for you, then find the company to provide it for you.

Sometimes it can be tempting to just "get it over with" and pick a Medigap policy on the fly and forget about it.

Big mistake!

Take the time (and it doesn't really take all that long) to work with an experienced person who can help you match the plan to your healthcare needs. Once you know which plan you want (A, B, C, D, F, G, K, L M, N) you can compare prices between companies and pick the one you like best.

Note: the lowest priced one may not always be best, as you may not prefer dealing with the lowest priced company for many reasons, such as prior experience with them)

Tip #3: Know how insurance companies set prices for Medigap insurance - and ask about this when you are getting a rate quote.

There are three ways that insurance companies set prices or "rate" Medigap plans.

1. Issue Age Rated - Premiums are lower for those who are younger and don't increase as you get older. A 65 year old will pay less than a 70 year old when enrolling, but premiums won't go up for either person as they get older (except for inflation or other factors but not based on age). 2. Attained Age Rated - Premiums are low for younger buyers and go up as you get older. If you get one at age 65, the price will go up. The premiums when you are younger are typically the lowest of the three (initially). 3. Community Rated - Premium isn't based on your age. It could go up because of inflation (or other factors), but a 65 year old will get the same rate as a 77 year old.

Now you have some powerful Medigap savings tools you can use right away.

Remember, this is your healthcare we're talking about here, so make sure you take your time and work with someone who cares. Even though Medigap plan benefits are standardized, the quality of service you get from your agent is not. Working with an agent who cares and offers more than just a rate quote coughed up from a computer screen is important to saving over the long run.

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Senior Health - How The Donut Hole Works

As a licensed insurance broker I find the prescription drug coverage difficult to understand. If it is confusing for me, I figured it must be even more confusing for those enrolled in a senior health plan. The prescription drug plan is Part D of the senior health plan called Medicare. Part D plans have a premium that must be paid monthly and most plans have a deductible that must be met before benefits begin.

 Let's take a stroll through a scenario of prescription coverage for my friend Mr. Schultz. He has selected a plan with a $310.00 deductible. It works just like all high deductible health plan. Once you pay the deductible the insurance kicks in. Mr. Schultz takes four different drugs. Two are generic and two are brand name. He pays, or meets, the deductible in June. After that Mr. Schultz will pay a copayment and his plan will pay its share for each covered drug until the combined amount between what the insurance company pays and what Mr. Schultz pays reaches a total of $2,840.

 Mr. Schultz is now in the hole of the donut! Most senior health plans refer to it as the coverage gap. In 2011, he will get a 50% discount of covered brand-name prescription drugs that counts as out-of-pocket spending. When Mr. Schultz has spent $4,550.00 total out of his own pocket his coverage gap will end. Now, Mr. Schultz will only pay a small copayment for each drug until the end of the year.

Searching for the right Senior Health plan can be confusing and tricky, so it's always best to speak to a licensed agent to assist you through the process.

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2 Different Types Of Jewellery Insurance

There are many different forms of jewellery insurance that one can purchase today. However before you do actually look to purchase it is a good idea to know more about it. This way you can ask the right sorts of questions to ensure that you obtain the right kind of policy.

The first thing you need to understand when it comes to this type of insurance knows that there are two different kinds available. There is that designed for schedule jewellery insurance and that is designed to provide coverage for unscheduled. Below we take a brief look at what these types of insurance are.

Unscheduled - This is the kind of insurance policy where you are not required to provide an exact list of the jewellery you want insured. It is the kind that is often included in basic home insurance policies and provides you with blanket coverage of such items. Generally with this type of insurance there are deductibles that you will need to pay and can range from between $500 and $1500. The main benefit of this type of insurance is that you don't need to have your jewellery appraised, but you will need to provide proof (receipts) regarding how much you paid for the items and a written description of them.

Scheduled - This policy is specifically for items of jewellery that you have and can be purchased separately or as a floater, rider or endorsement to your home policy. Of course we would recommend that you actually go for a policy that is separate to your home one. With this type of policy of course the jewellery will need to be appraised as this is what determines how much it is value at for insurance purposes and will of course determine what you will pay each year to have these items insured.

You do need to be aware however that with this type of jewellery insurance even if the cost to replace the item goes up in the future, you will only get what they have originally valued the item at when it was appraised originally.

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Medicare Supplement Plans - How They Work

Medicare Supplement plans are plans that are designed to fill in the "gaps" in "original" Medicare. "Original" Medicare includes Medicare Part A (hospital inpatient) and Part B (outpatient/doctor). These plans are consistent across companies - all companies are required to provide the same standardized benefits. This makes it very easy to understand the plans and how they work. Here are the top three things that you must know when looking at Medicare Supplement plans:

Medicare Supplement plans (also called Medigap) are Federally-standardized. The plans all provide equal coverage for "like" plans. What this means is that a Plan F with one company is the exact same as a Plan F with another company. Because of this, it is important to compare the plans on the basis of monthly premium and company rating or reputation. Price being equal, it is preferable to be with a company that has a long track record of involvement in the senior insurance marketplace and/or a high financial strength rating. Medigap plans can be used at any doctor or hospital, nationwide, regardless of which company sells you the plan. Many types of insurance are network-based; however, this does not apply to Medicare Supplement plans. Even some types of Medicare plans - Medicare Advantage plans - are network-based in most cases. On the contrary, Medigap plans give you the flexibility of using the plan anywhere in the country that takes Medicare. This flexibility, particularly for someone that travels, is one of the many reasons that these plans have become increasingly popular as a way to supplement Medicare coverage. Medigap plans all pay claims through the Medicare "crossover" system. There is no variation in how quickly or how efficiently one company pays claims versus another. While some companies may use the selling point of their timeliness in paying claims, this is not altogether accurate when it comes to this type of insurance. Because the plans are Federally-standardized and pay claims this "crossover" system, you can be assured that, regardless of the company, the claims are going to be paid in a timely manner and with minimal (usually no) involvement from the insured. Once you have a plan, you just need to present your plan identification card with your red, white and blue Medicare card when receiving services from a doctor or hospital.

Altogether, Medicare Supplement plans continue to be a viable option for those on Medicare, who wish to limit their exposure to out of pocket expenses. With only Medicare, you are subjected to paying approximately 20% of all medical costs. With a Medigap plan, however, you can greatly reduce or, with some plans, completely eliminate your out of pocket costs.

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What Should Be There in the Best Medicare Supplemental Plans?

The best Medicare supplemental insurance plans covers up for out of pocket expenses not reimbursed by regular insurance. These out of pocket expenses include co payments, deductibles and coinsurance. Some plans pay for these expenses paid from the pocket, while other provide with a cash benefit paid over a time period or given to the person in lump sum amount.

This lump sum amount can be utilized to cover for lost wages, expenditure in transportation due to medical treatment, or to pay for medication, food and other expenses which one may not expect due to injury or illness.

Best Medicare Supplemental Insurance Plans

People who are already enrolled in Medicare can also eligible to enroll in supplemental insurance, which are sold and marketed by private companies. Traditional Medicare (which includes hospital insurance under Part A and medical insurance under Part B) pays for most, but not all, services related to health and medical supplies.

A best Medicare supplemental insurance plan must be able to cover for "gaps" left out by traditional Medicare such as deductibles, coinsurance and co payments. These expenditures can really add up particularly for people who are hospitalized or require skilled nursing home services. This plan also pays for medical services a person seeks outside the country and preventive services not approved by Medicare.

People who are enrolled in Part A and B of Medicare and also in best Medicare supplemental insurance plan, the Medicare first pays its share of approved medical services and then Medigap pays its share of the cost.

Types of Supplemental Insurance

Other than Medigap, there are three types of supplemental plans that are widely sold in the country. These policies are either available as voluntary benefit from the employer or one can enroll directly through an insurance company.

Critical Illness Insurance

Disease specific or critical illness insurance is designed to provide financial backup to people with serious illness, like cancer. These plans provide a lump sum amount to help people take care of additional expenditure related to illness but not provided in regular insurance or disability plan. Depending on the plan, it can be utilized to pay for:

Specialists not in the network Deductibles House hold help and child care Travel and lodging to get the treatment at far off place Experimental treatment Daily expenses such as utility bills, car payments and groceries

Accidental Death Plan in Best Medicare Supplemental Insurance

Accident plans are of two types, including Accident Health Insurance, and Accidental Death and Dismemberment Insurance. They are often sold together. Due to variation in local regulations the benefits differ from one state to another.

Accident health insurance or accident hospital indemnity policy pays for medical expenditure resulting due to an accident which is not approved under regular health plans. These plans also reimburse for extended services in homecare, and lodging and travel expenditure of family members.

An accidental death and dismemberment policy gives a lump sum amount to the beneficiary of the person who died in an accident. The plan also provides benefits, however smaller to people who did not lose their life but lost a limb, suffered permanent paralysis or eyesight. AD&D does not cover for deaths related to suicide, illness or natural death.

Hospital Indemnity Insurance

Hospital confinement or indemnity insurance offers cash benefit to people who are confined to a hospital due to serious injury or illness. The person can receive the benefit as a lump sum amount or as a weekly or daily payment; there is, however, a minimum waiting period for the benefit to start. Just like other best Medicare supplemental insurance, the extra benefits are there to pay for services and for services not approved by regular coverage.

Caveat Emptor - Are you enrolling in extra coverage?

Insurance companies spend a huge amount in promoting their insurance products through direct to consumer advertising. Many Americans are aware of a flac duck, an advertising campaign that assisted a flac in becoming the biggest provider for supplement products in the country.

A best Medicare supplemental insurance is quite economical, but it is totally unnecessary to have duplicate coverage. People who are at or above 65 years of age and are enrolled in Medicare, one can get the full coverage by purchasing a regular Medigap plan or by purchasing an advantage plan.

The first step is to ensure that you and your family are protected with a regular coverage. People, who are searching for best Medicare supplemental insurance plan, should have answers to the following questions:

If you or any of your family members develops serious illness or meet with an accident, will the current coverage sufficient to cover for the treatment? What is the probability that you or one of your family members will develop a major illness or serious accident? Is it of any worth to pay for best Medicare supplemental insurance over time?

Apart from this, before you sign a supplement insurance contract, it is crucial to understand the benefits and limitation of such plans. For instance, every supplement plan has its own restrictions, the applicant may be asked to wait for sometime before the coverage starts or may have limit on how much can be reimbursed for how long.

Medicare Supplemental Insurance - How to Choose an Advisor?   How To Apply For Medicare Supplemental Insurance And Get The Best Rates   Help With Your Medicare Supplement Choices   What Is Supplemental Security Insurance?