If you are to turn 65 within the next year or two, the time to learn about Medicare supplement insurance is right now. A quality, reliable,
Medicare supplement plan is as important a financial piece as any, when it comes to achieving the level of financial stability you're going to want and need in retirement.
Let's go over the basics of Medicare supplement coverage and break down 4 important steps to getting this insurance necessity in the state of Colorado.
What is Medicare Supplement Coverage (Medigap)?
Before you make the leap to acquiring a Medicare supplement plan, it's important to know what Medicare supplement coverage is, and how it works.
Simply put, Medicare supplement coverage is insurance for medical circumstances that are not covered by Medicare. While Medicare coverage is quite extensive, it does
not cover everything. If you have the misfortune of suffering a medical incident that requires surgery, or a hospital stay, medical bills can mount rather quickly.
Most people are surprised at the costs associated with even the most modest of medical procedures. A quality Medicare Supplement plan can be a financial lifesaver.
Medicare Supplement plans (also known as Medigap plans), are offered through private companies. Keep in mind that Medigap plans are not the same as Medicare Advantage Plans. (For the pros and cons of Medicare Advantage plans, click here.)
Medigap coverage can only be used for one thing: circumstances where traditional Part A and Part B of Medicare does not provide coverage.
In total, there are ten Medigap plan styles that consumers may consider. We'll discuss these plans in more depth so that you can make the decision that's right for you.
To be eligible for a Medigap plan in the state of Colorado, you must meet certain requirements. Let's take a look at the conditions consumers must satisfy in order to be eligible to apply for Medigap insurance.
For starters, you must be enrolled in Medicare Part A and Part B. If you are not enrolled in Both Part A and Part B of Original Medicare, you will not be able to purchase a Medicare supplement plan.
Secondly, in almost every case, you need to be age 65 or older to be eligible for Medigap insurance. The state of Colorado requires Medigap insurance companies to provide at least one type of supplemental insurance to individuals who, through specific disabilities, are eligible for early Medicare.
How Does Medigap Work in the State of Colorado?
If you meet the eligibility requirements for Medigap insurance in Colorado, you may be wondering how exactly Medigap insurance works. Is the payment rolled up into one bulk Medicare cost, or will you be forced to pay two different premiums? Additionally, does Medigap insurance offer spousal coverage, or is it just for one person?
Let's take a look at these questions and break down the answers. Because Medigap plans work differently than Original Medicare, it's important you understand the differences between the two plans.
If you enroll in a Medigap plan, you will need to pay an additional premium on top of your existing Part B premium. This premium will be paid on a monthly basis. These plans cover only one individual. If you are seeking supplement coverage for both you and your spouse, each member must apply for his or her own policy.
Medigap coverage is purchased through private insurance companies. You'll find that different insurance companies have different premium structures (and therefore different prices) when it comes to their Medigap plans.
If you suffer a medical incident, you can expect Medicare to cover any medical costs according to the Medicare coverage plan benefits. Your Medigap insurance is designed to help cover expenses not covered in your Original Medicare plan.
As long as you continue to pay your monthly Medicare supplement premiums, you are never in danger of losing your coverage. Because Medigap is guaranteed-renewable, you can keep your coverage even if you fall ill or have a downward turn in your health.
Steps to Finding the Right Medicare Supplement Plan
Finding the right Medigap plan for your situation doesn't have to be difficult. Though it can be overwhelming at first, by following the steps below, you should be able to painlessly find an ideal plan.
First, you'll need to research the different Medicare Supplement plans available. Currently, there are ten different supplement plans available: A – N.
|Benefits||Medicare Supplement Plans|
|Medicare Part A Deductible||No||100%||100%||100%||100%||100%||50%||75%||50%||100%|
|Medicare Part B Deductible||No||No||100%||No||100%||No||No||No||No||No|
|Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are exhausted||100%||100%||100%||100%||100%||100%||100%||100%||100%||100%|
|Medicare Part B coinsurance or copayment||100%||100%||100%||100%||100%||100%||50%||75%||100%||100%**|
|First three pints of blood||100%||100%||100%||100%||100%||100%||50%||75%||100%||100%|
|Medicare Part A hospice coinsurance or copayment||100%||100%||100%||100%||100%||100%||50%||75%||100%||100%|
|Skilled Nursing Facility (SNF) coinsurance||No||No||100%||100%||100%||100%||50%||75%||100%||100%|
|Medicare Part B Excess Charges||No||No||No||No||100%||100%||No||No||No||No|
|Foreign Travel Emergency (Up to Plan Limits)||No||No||80%||80%||80%||80%||No||No||80%||80%|
*Plan F is also has a high-deductible option. The F high deductible plan pays for all Medicare-covered expenses after you meet a $2240 annual deductible.
**Office copay exceptions: Some office visits may require a copayment of up to $20. Emergency room visits may require a copayment of up to $50.
***Plan pays 100% of covered Medicare costs for the remainder of the calendar year once the out-of-Pocket limit is reached.
Once you've chosen the plan type that fits your needs, you should begin looking at insurance companies that offer that plan.
Visit the Colorado Department of Regulatory Agencies website. Here, you will find a wealth of information pertaining to the insurance companies who offer Medigap coverage in the state of Colorado. Use this resource for official, in-depth, insurance information.
Don't be afraid to make some phone calls. Be sure to verify plan details directly with the insurance carrier, before applying for any plan. This can prevent costly mistakes, delays, and even denials in the future.
Also, be sure ask as many questions as you need in order to feel comfortable about selecting a plan.
We are pleased to assist and will respond promptly.