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Comparing Medicare Carriers for Supplement Plans

by Jagger Esch
written by Jagger Esch

There are many things for a Medicare Beneficiary to consider before choosing the right Medicare Supplement (Medigap) carrier for themselves. For most, they tend to look at carriers that they are familiar with to start.

While it is true that all companies that offer Medigap plans must offer the exact same 10 standardized plans, the differences from company to company can vary greatly.

Cost

Cost is the biggest factor that most Medicare Beneficiaries investigate first, and rightfully so. The reason goes back to the plans. They are regulated by law to cover the same benefits no matter the company. Therefore, cost plays such a large factor, however, it is far from the only thing to consider.

Rate Increases

Rate increases happen all the time in life, not just in insurance. Some companies such as AARP United Health Care give on average a rate increase every 6 months, while most other carriers see yearly increases.

Unlike the plans, the rate increases are not standardized, and some companies will have higher percentage increases than others. Deciding factors are the market strength of the given carrier and plan in the area, inflation, as well as other factors such as claims.

At times companies will have a rate reduction, such as United American’s reduction in Florida in 2018. This is not common but goes to show how prices can fluctuate, but on average the expectation is that the increase will happen yearly.

Customer Service

How well a company treats their customers is another important thing to consider. When calling some companies, you will end up speaking to representatives in other countries or have long wait times to get the assistance you need.

Today we are going to be discussing 3 of the larger household names that offer Medigap Plans: Aetna, Humana, and Cigna.

Aetna

Aetna is one of the largest Medigap carriers in the United States. They offer a 12-month rate lock. That means when someone elects to go with an Aetna Medigap Plan, they will not have a rate increase for at least the first 12 months of their new policy.

Since Aetna has one of the strongest market shares of Medigap offerings throughout the country, they also have on average some of the most conservative rate increases compared to many of their competitors. They are an AM Best A rated company. They also have very good customer service for their Medicare Supplement clients.

Aetna does offer other types of coverages for seniors as well such as Part D Prescription Plans, Dental Vision and Hearing Plans, Critical Illness Plans, Hospital Indemnity Plans, and even Medicare Advantage Plans.

For more information on how Aetna Medicare Supplement Plans work and to see if they are the right fit for you, click here.

Humana

Humana is another large health insurance company, and while they do offer Medigap plans, their larger focus is on the Medicare Advantage market. They are a great company but for most of the United States, their prices for Medigap Plans are not competitive.

Likewise, since their primary focus in not Medigap, they do not have a large market share of the Medigap market which generally means their rate increases will be more liberal, or higher.

Like Aetna, Humana offers other coverages that seniors can take advantage of, as mentioned earlier. One of their biggest offerings is their Medicare Advantage Plans. They do also have Dental, and Part D Prescription Plans

Click Here to find out more information on Humana Medicare Supplement offerings and how they work.

Cigna

Cigna has really established themselves as one of the most competitive Medigap carriers in the industry. Like Aetna, they offer a 12-month rate lock, as well as conservative rate increases.

Cigna is also one of the nation’s largest insurance companies, giving them some of the strongest abilities to handle the claims of their clients. This is one of the main reasons for their competitive pricing and conservative rate increases.

Cigna also offers coverages that seniors can take advantage of such as Final Expense Life Insurance, and Critical Illness Plans. Like both Aetna and Humana, they offer Part D Prescription Plans as well as Medicare Advantage, but they really shine in the Medicare Supplement field. They have great customer service as well as, an AM Best rating of A as well. Here is a great article about Cigna regarding fee-forgiving.

Medicare.gov is a great resource for seniors looking to transition into Medicare. On Medicare.gov you can find resources that will assist in figuring out which Part D Prescription Plans provides the most advantageous coverage for a Medicare Beneficiary. You can find out if your doctor accepts Medicare, as well as resources on preventive services, and much more.

Another great site to help seniors with the transition is CMS.gov. CMS or The Centers of Medicare and Medicaid Services, is the regulating body for Medicare, and Medicare plans. Here you can find the latest details about Medicare and any changes or updates to the Medicare system.

 

 

 

 

 

 

 

 

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What are Guaranteed Issue Rights for Medigap
Medicare Plans

What are Guaranteed Issue Rights for Medigap?

by Garrett Ball
written by Garrett Ball

Have you wondered why some people can bypass all those medical questions on Medigap applications, while others must answer them? These seniors have what is called “guaranteed issue rights, also known as “Medigap protections“. It is when insurance companies afford you the right, under certain circumstances, to enroll in Medigap policies without having to answer medical questions. What are Guaranteed Issue Rights for Medigap
The insurance companies that sell Medigap plans are required by law during this protected time to:

  • sell you a Medigap policy at the best available rate regardless of your health condition. They cannot deny you coverage
  • cover all your pre-existing health conditions
  • NOT to charge you more for a Medigap policy because of any health problems, whether in the past or present.

Although insurance companies must follow the Federal law, each state may include additional enrollment periods during which Medigap protection rights may exist. You need to check with your state SHIP (State Health Insurance Assistance Program) for more information.

In Which Situations Can You Use Guarantee Issue Rights for Medigap?

  1. If you currently have health coverage through an employer group plan (including retiree or COBRA) or through a union, and that coverage will be ending. Note: If you are on COBRA, you can enroll in a Medigap policy immediately or when your COBRA coverage is terminated.

To have your guaranteed issue right applied:

  • It must be no later than 63 calendar days from the date you lose your coverage; or
  • You get a notice telling you that your coverage is ending; or
  • You have proof of that date on a claim denial, if none of the other two options are available.
  • Please note, that your guaranteed issue rights may be extended for up to 12 months in certain situations depending on State law.

Make sure you keep a copy of any letters, notices, postmarked envelopes, and claim denials, as you may need to show proof and include them with your Medigap application.

  1. If you were enrolled in Medicare Part C (Medicare Advantage Plan) when you were first eligible for Medicare, or PACE (Programs of All-inclusive Care for the Elderly) and disenrolled within the first 12 months you had the plan to return to Original Medicare (Trial Right). Know the differences in Medigap and Medicare Advantage
  • The earliest date you must/can enroll in a Medigap policy is two months prior to the date your coverage will end; but no later than 63 calendar days following the termination of your coverage.
  1. You are in a Medicare Advantage Plan, and your plan is leaving Medicare or can no longer provide care in your area, or you are moving out of your Medicare Advantage plan’s service area.
  • The earliest date you must/can enroll in a Medigap policy is two months prior to the date your coverage will end; but no later than 63 calendar days following the termination of your coverage.
  1. You have a Medicare Select policy and you move out of your plan’s service area.
  • The earliest date you must/can enroll in a Medigap policy is two months prior to the date your coverage will end; but no later than 63 calendar days following the termination of your coverage.
  1. You lose your coverage because of your Medigap insurance company going bankrupt, or your Medigap policy coverage ends through no fault of your own.
  • You must/can enroll not later than 63 calendar days from the date your coverage ends.
  1. You leave a Medicare Advantage Plan or are disenrolled from a Medigap policy due to the insurance company ignoring the rules, or misleading you.
  • You have 63 calendar days from the date your coverage ended to buy a Medigap policy under guaranteed issue rights.

Note that you can enroll in a Medigap plan at any time. There is not an annual enrollment period for these plans. However, if you are not in one of these “guaranteed issue” situations, you have to answer medical questions and “qualify” in most situations. Regardless of your situation, it is important to follow the steps to compare Medicare Supplement plans before enrolling.
Lastly, it is strongly advisable to enroll in a Medigap policy before your current health care coverage ends. You can apply while you still have your coverage but the earliest effective date won’t be until the day after your current coverage ends. At all cost, try not to have any breaks in health care coverage, otherwise, you may not be eligible for Medigap protection when you most need it!

What are Guaranteed Issue Rights for Medigap

What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap What are Guaranteed Issue Rights for Medigap

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Guide to Choosing a Part D Prescription Drug Plan
Prescription Programs

Guide to Choosing a Part D Prescription Drug Plan

by Garrett Ball
written by Garrett Ball

With the arrival of the Medicare annual election period, now is the time to compare your Part D plan to make sure you have the best “deal” for 2018. Guide to Choosing a Part D Prescription Drug Plan
First of all, it is important to understand that, each year, the Medicare Part D prescription drug plans have the ability to change their benefit structures, including premiums, deductibles, co-pays, networks and formularies. This means that keeping the “status quo” from year-to-year carries with it some definite risk. It is advisable to re-evaluate your Part D selection annually to ensure you have the plan that most closely fits your needs. Guide to Choosing a Part D Prescription Drug Plan

What is Part D?

Part D is the part of Medicare that covers prescription drugs. It is, technically, a “part” of Medicare; however, Part D plans are sold through private insurance companies. CMS, the Centers for Medicare and Medicaid Services, has oversight over Part D plans and approves them on an annual basis.
Each Part D provider decides how they are going to structure their plans. They may choose to have a higher premium and lower co-pays or vice versa, for example. They must meet Medicare’s minimum standards for what drugs they cover, but within those standards, they have flexibility in designing a formulary (list of covered drugs) and co-pay structure.
In early October of each year, the Part D plans for the following year are released. Around that same time, you should receive a notice in the mail from your current Part D provider, showing how the plan’s coverage and premium is changing for the next calendar year. This is the time that you should compare Part D plans. Guide to Choosing a Part D Prescription Drug Plan

How to Compare Part D Plans

Comparing Part D plans is actually relatively easy to do if you have some computer savvy. It can all be done on Medicare’s website, www.Medicare.gov. To compare the plans, you can use the “Medicare Plan Finder”. It can be a little difficult to use if you have not used it before – this step-by-step guide to comparing Part D plans on Medicare.gov may be helpful.
Another alternative to comparing the Part D plans on Medicare.gov is asking your local pharmacy, or pharmacist, for help. Many pharmacies now offer this service to their customers. They already have a list of your medications, so they can plug those in to the “Medicare Plan Finder” and make a recommendation that way.
The way the plan finder works is that it ranks the plans in order of lowest overall annual cost to you. It takes into account the drug plan premium, the deductible and the co-pays on each plan. This way, the results are customized to your specific medications and situation, and you can make an informed choice. Guide to Choosing a Part D Prescription Drug Plan

How to Change Your Part D Plan

Once you have done the Part D comparison, you may find that you should just stay with the same plan. If this is the case, you do not need to take any action, as the plans renew automatically if you make not changes.
If, however, you see that you should choose a different plan that would cover your medications more thoroughly or give you a lower overall annual cost, you can do so easily.
One option for changing your Part D plan is to do it directly on Medicare’s website. Changes can be made between October 15 and December 7 of each calendar year.
The other alternative for changing your Part D plan is to contact the new plan directly, either online or by phone, and enroll in the plan of your choice.
Any time you change Part D plans, Medicare automatically takes you out of the old plan when they approve your enrollment into the new plan. In other words, you do not have to proactively cancel the old plan – it happens automatically when you are enrolled into the new plan. All plan changes take effect on January 1, as the plans run with the calendar year.
Overall, comparing Part D plans annually is a crucial part of a sound financial plan for someone on Medicare. You should take the time to compare and make any needed changes for next year during this annual election period. Guide to Choosing a Part D Prescription Drug Plan

Guide to Choosing a Part D Prescription Drug Plan

Guide to Choosing a Part D Prescription Drug Plan Guide to Choosing a Part D Prescription Drug Plan Guide to Choosing a Part D Prescription Drug Plan

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