Many people wonder if the Medicare insurance commercials they see are showing the best drug planning plans available today. Because of this, there are several large organizations that consistently manage these ads and have a good name. Many people I talk to daily ask me if these companies really have the best Medigap plans on the market.
Medicare Supplement (or Medigap) Plans
A few years ago, federal authorities standardized Medicare insurance plans. This means that no matter which insurance company you buy it, the benefits will be the same. When it comes to the Medigap politician, they all sell the same thing. Plan F from ABC is identical to Plan F from XYZ or any other insurer in this regard. It really makes shopping for these insurance plans a lot easier, because you know that you are comparing apples to apples between companies. However, insurance companies may charge the WHATEVER fees they want for these Medigap plans. Thus, shopping is critical.
Medicare Advantage Plans (All-in-One)
Most insurance companies also sell Medicare Advantage or All-In-One. This is a type of Medicare plan that works differently than on Medicare Part A & B with an additional plan. They are sometimes called “all-in-one” because many of them include coverage of the Part D drug plan. Some of these plans have a zero monthly premium, while others will pay a small monthly premium. When you go to a doctor or hospital or get treatment, you pay co-payments, usually with an annual maximum amount of cash. This means that your annual expenses can be unpredictable, especially if you have expensive procedures per year. But if you are healthy, Medicare Advantage plans can save you some money.
Although these plans may seem attractive at first, you need to be careful with them. First, doctors and hospitals are not required to accept these plans, even if they accept normal Medicare patients. Secondly, and probably more importantly, it seems that Medicare can eliminate these plans by the end of 2010. These plans are more expensive for Medicare, and they will be one of the first things you need to cut to save money. Medicare cuts are an important part of the proposed health legislation that is happening right now.
Shop around
Thus, there are many good companies that sell Medicare (or Medigap) plans, as well as Medicare Advantage plans. But if you go shopping and work with an independent agent, you will find that you can buy identical policies that are much less than paid companies that run TV ads. An independent agent who actually has your interests will help you make purchases in different companies and find the best rates. So you can easily compare prices and save.
