How to Choose a Medicare Supplement Plan in Boynton Beach
What is a Medicare Supplement Plan?
Medicare beneficiaries in Boynton Beach looking at their Medicare insusrance options need to know how to choose a Medicare Supplement Plan. As a result, making the wrong decision can be costly and difficult to change.
How do Medicare Supplement Plans Work?
Medicare Supplement plans are also known as Medigap Plans because they fill in the “gap” or “Out-of-pocket” costs not paid by Original Medicare. Original Medicare only includes Medicare A (Hospital Insurance) and Medicare B (Medical Insurance, such as doctors’ bills). These plans only work with Original Medicare.
Medicare Supplement (Medigap) plans are also not Medicare Advantage Plans which are managed by private insurance companies. Importantly, Medicare Supplement plans can not be legally combined with a Medicare Advantage Plan.
These “Out of pocket” costs for Original Medicare include:
- There is no “annual maximum out of pocket”. That means there is no limit to your how much you can spend each year when you use Medicare A and B benefits.
- You will be paying Copayments (a set amount) and Coinsurance (a %) for services and products you use.
- Every year, Medicare changes its costs. Therefor, you might be paying more every year.
- Original Medicare doesn’t cover Hospital and Medical costs you might incur outside of the United States.
A Medicare Supplement Plan Will Cover Some or All of the Above Costs.
The Best Time to Buy a Medicare Supplement Plan
When choosing a Medicare Supplement plan in Boynton Beach, it is very important you understand when to buy a plan. The best time to buy a plan is:
- During your Guaranteed Issue Period when you enroll in Medicare Part B. You have 6 months from this time during which the insurance company can’t turn your application down. This can happen when you first turn 65 or when you retire from your Employer Insurance. If you want to enroll in a plan after this time period, you will have to answer Medical Underwriting questions. As a result, your application may not be accepted.
What Type of Medicare Supplement Plan Should you Choose?
- There are 10 Standardized Plans which vary in their coverage and costs.
- The plans are guaranteed renewable as long as you stay enrolled in Medicare Part B and continue to pay your monthly premium.
- All Medicare Supplement Plans are diffentiated by letters.
- Not all plans are offered in Florida. The ones that are offered in Florida are A, B, C, D, F, G, N, HDF and HDG. You can find the Standardized Benefit Chart at this link.
- The most comprehensive plan currently being offered to new Medicare enrollees is Plan G. The only cost not covered by Plan G is the annual Medicare Part B deductible of $226.00 in 2023. As a result, your monthly premium for this plan will be higher than the other plans.
- There are multiple insurance companies approved by the Florida Department of Insurance to sell their plans in Florida
How to Save Money on A Medicare Supplement Plan?
There is competition between the insurance companies that sell their plans in Florida. That means, that the rates for the same plan will vary by company. In addition, your entry rate will be lowest at age 65 and will be higher if you buy a plan when you are older. Also, your rate will be higher if you smoke, regardless of your age. Finally, the rates for the same plan vary by the zip code where you live.
In addition, the plans usually have annual rate increases and they also vary by company.
To read the Pros and Cons of Medicare Advantage and Medicare Supplement plans, click here:
