Medicare Supplement Companies

[BlakeErickson]

The main items you want covered is the 20% coinsurance, the 15% excess charges, and days 21-100 of skilled nursing. If you can stomach the deductibles you can save some money on premium.

matt

Just curious on your thoughts why the excess charges are the most important to get covered? I'm an agent that sells a ton of Plan N.

The data that I have seen shows that roughly 10% of all Medicare beneficiaries would ever experience an excess charge and of those that do, 90% receive charges of less than $150 annually.

I've done a ton of web research and hear people saying "get them covered" but the only #s I've been able to find make them a non-issue.

Please reply if you have something I should check out !

 

[mattspits]

I don't consider them the most important. I am just going on what I have personally seen out in the field. I have seen people with excess charges in the thousands. I generally advise people on what they are, and then let them make an educated decision. My main area of concern with excess charges is that I am expecting to see more of them and not less due to the reduction in Medicare payouts to providers.

 

[BlakeErickson]

I don't consider them the most important. I am just going on what I have personally seen out in the field. I have seen people with excess charges in the thousands. I generally advise people on what they are, and then let them make an educated decision. My main area of concern with excess charges is that I am expecting to see more of them and not less due to the reduction in Medicare payouts to providers.

Ah OK, I can understand that them. I guess I just haven't run into them in the Chicagoland area much. I also do my best to educate my clients that take Plan N to ask their doctors if they accept assignment.

 

[texastart]

Hi Mack,
I have a different issue regarding Supplemental Insurance as follows:
I have been trying to analyze whether or not Medicare Supplemental Insurance makes economic sense for me and my wife. We are both 70 years of age and have substantial liquid assets. Current premium rates suggested by AARP is $3000/year each for Plan F coverage. It is difficult to determine what the total liabilities are that this $6000/year protects?
Any thoughts in this regard?

The number one reason people over the age of 65 go broke is because of out of control medical cost. If you are 70 and can afford and more importantly qualify for a F plan, go for it. This is the easiest way to know what your monthly costs will be, you just pay your premium and that's it. You'll never have a deductible, or out of pockets, NO SURPRISES! AARP who underwrites through United Healthcare is the cheapest, but it's a group plan. You may want to shop for an issue age company that offers an individual plan, so you can't be cancelled when the government eliminates the F plan. AARP cancelled people who had the old J plan which was better than the F plan. Companies such as BCBS, Colonial Penn, Mutual of Omaha USAA offer these types of plans, and Colonial Penn USAA and Mutual allows you to move from state to state. BCBS won't let you move out of the state without ending the policy. USAA you have to be a member and have a military connection with rate increases to your new age every 4 years. Mutual of Omaha has some big rate increases every year. Shop around, and be suspect of teaser rates, there usually is a reason the rates are so low.

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Hi Mack,
I have a different issue regarding Supplemental Insurance as follows:
I have been trying to analyze whether or not Medicare Supplemental Insurance makes economic sense for me and my wife. We are both 70 years of age and have substantial liquid assets. Current premium rates suggested by AARP is $3000/year each for Plan F coverage. It is difficult to determine what the total liabilities are that this $6000/year protects?
Any thoughts in this regard?

The number one reason people over the age of 65 go broke is because of out of control medical cost. If you are 70 and can afford and more importantly qualify for a F plan, go for it. This is the easiest way to know what your monthly costs will be, you just pay your premium and that's it. You'll never have a deductible, or out of pockets, NO SURPRISES! AARP who underwrites through United Healthcare is the cheapest, but it's a group plan. You may want to shop for an issue age company that offers an individual plan, so you can't be cancelled when the government eliminates the F plan. AARP cancelled people who had the old J plan which was better than the F plan. Companies such as BCBS, Colonial Penn, Mutual of Omaha USAA offer these types of plans, and Colonial Penn USAA and Mutual allows you to move from state to state. BCBS won't let you move out of the state without ending the policy. USAA you have to be a member and have a military connection with rate increases to your new age every 4 years. Mutual of Omaha has some big rate increases every year. Shop around, and be suspect of teaser rates, there usually is a reason the rates are so low.

You DO NOT have to be a member of USAA to enroll in their medicare supplemental insurance. Too bad most people do not know that. I spoke to them today and they only sell Plan F and Plan N....I really wanted Plan G but I will go with Plan F since I want to use USAA. Plan F is $122.00 for new enrollees. They said at age 68, the plan would be $132.00 plus any increases that the state may impose, if any. From 2010 to 2014 the plan increased 10%..(in 2010 no change, 2011 went up 7%, 2012 no change, 2013 up 6% and 2014 decreased 3%.)

 

[MBSC]

I turned 65 last year also and like you I spent a lot of time browsing all the Medigap plans. I decided on the AARP (United Health Care) plan N also as it met my needs as far as premiums and coverage. I don't mind a co-pay every time I go to the doctor in order to get the lower premiums.

So far I have been happy with them and there hasn't been a rate increase. I compared their rates to the other major carriers available in my area and they were the cheapest. The smaller companies do not publish their rates online so I was a little suspicious of them and did not get a quote. Maybe they would be cheaper, I don't know, however if they can't give their rates right up front then I am not giving them my personal information for an agent to contact me with a quote. So far there has been no rate increase with AARP, but I am still in the first year.

I signed up online directly with AARP just because it was easy and I didn't have an agent and didn't want to bother to find one. However if you have an agent to assist you then I can see the benefit in that also.

There is no need to be leery of the smaller companies as long as they are financially sound. They are able to offer lower premiums by not having the fancy websites, advertising, and agent commissions. When you search for Medigap plans on the Medicare.gov website, it will give you their phone number to call for quotes. You do not have to give them your phone number unless you decide to purchase.