|
MEDICARE – WHAT ARE YOUR OPTIONS?
Medicare Options and Medicare
Supplement Plans:
As each American
approaches their 65th birthday, they are
faced with the decision as to what type of
health insurance coverage they should have.
Fortunately, there are many options; however
it can be a bit confusing.
Much of
what determines the options available to you
depends on your employment status. For
example, if you plan to continue working
full time after 65, you can remain on your
employer’s group plan. Federal
guidelines dictate that if your company
employs fewer than 20 workers, then Medicare
will be your primary coverage and your group
health plan will act as your supplement
policy. These roles are reversed if
your company employs over 20 workers.
In either case, your coverage does not
significantly change, however the cost can
vary among insurance companies and the
premiums that are covered by your employer.
If, on the other hand, you are
self-employed, retired, or do not have
access to an employer sponsored plan, you
will probably want to consider a Medicare
supplement policy. These policies are
sold by insurance companies to help pay a
person’s Medicare cost-sharing amounts.
In 1993, Medicare required that all of the
supplements be standardized.
Currently, there are 12 plans offered:
Plans A through K. Each plan has a
different combination of benefits and
premiums. All insurance companies that
sell these plans must offer one or more of
these standard plans. Therefore, in
shopping for an insurance carrier, the only
variables are the premiums, customer
service, and reputation of the company.
One final option available to all Medicare
beneficiaries is a Medicare Advantage Plan.
These are private plans that are an
alternative to traditional Medicare.
Upon enrollment in a Medicare Advantage
Plan, the enrollee gives up their Medicare
benefits in exchange for the benefits
offered by the Medicare Advantage Plan.
These benefits can be greater than or lesser
than the benefits covered by Medicare and
they are typically managed care plans that
are limited to a network of providers.
One must be very careful in choosing a
Medicare Advantage Plan as the benefits,
providers, and patient experiences can vary
widely.
Courtesy of Greg Ward,
Alliance Benefit Services, Dallas.
|
