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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