It is vital to know the difference between Medicare Supplement Plans and Medicare Advantage Plans. In most cases, the two are treated as interchangeable terms. If you are not clear on this distinction, it may cause confusion and may even lead to being overcharged for benefits that you were actually eligible for. The Federal Government has been requiring that all private insurance companies offer at least one Medicare Supplement Plan. The concept of a Medicare Supplement Plan is designed to help seniors who are not able to afford traditional Medicare continue to receive their desired coverage. Medicare Advantage Plans is essentially an expanded version of Medicare Supplement Plans. These plans cover the same services that traditional Medicare does.
While Medicare Supplement Plans is available without any financial requirements, many companies will require your company or employer contribute a monthly fee toward your Medicare. Some employers will require the employer to pay a co-payment when the policy is purchased.The financial liability attached to Medicare Advantage Plans can be a lot more complicated. To understand this more fully, we must first define the difference between Medicare Supplement Plans and Medicare Advantage Plans.
First and foremost, Medicare Supplement Plans are intended to replace the costs associated with having to choose from the wide variety of private plans that are on the market today. Medicare Advantage Plans is typically only used by seniors whose family has had problems accessing affordable coverage. For example, if the spouse was a disabled employee that was laid off, the spouse would be able to continue coverage under the spouse’s Medicare Supplemental Plan, but would have to change to the non-dependent policy. If the spouse decides to continue the spouse’s policy, the spouse would not be able to access the same level of coverage as they were offered under the former spouse’s supplemental plan.
Medicare Advantage Plans is more commonly used by retirees, family members of disabled employees, and other people that have experienced difficulties accessing the options available through traditional Medicare. This is because most supplemental plans are significantly less costly than Medicare. Many times the extra cost of purchasing a supplemental plan is offset by the savings received from cutting out the middleman.The financial liability associated with Medicare Advantage Plans is different than that associated with Medicare Supplement Plans. While both forms of supplemental coverage are subject to the tax code, the premium for Medicare Advantage Plans is not charged on your Medicare Part A premium; it is charged directly to you on a monthly basis.
What this means for you is that you may be able to save a lot of money on your premium by switching to Medicare Advantage Plans instead of Medicare Supplement Plans. In fact, many supplemental plans will charge the same rate that Medicare Supplement Plans charge, so the premium for Medicare Advantage Plans can often be more than double that of your current supplemental plan.How do you find a good supplemental plan? The very first thing you should do when you are shopping for a supplemental plan is to determine if the company is in a position to make the minimum monthly payment due on your existing Medicare Supplement Plan. If the company is unable to make the monthly payments, you should look elsewhere.
The next step is to talk to the people at the company, and inquire about the reputation of the company you are considering, and also the reputation of the reputable company you already have an account with. Check to see if they will let you cancel your account if you find out that the company is not up to snuff. Also check for any complaints or investigations that the government has done on the company.The last step is to review the plan options available and the cost of each plan. Compare these costs with your current Medicare Supplement Plan and decide which one best fits your needs. In addition, before purchasing any plan, you should also ask the company to send you the annual service contract.
In conclusion, Medicare Supplement Plans is a very important part of the health care system in the United States. Please be aware of the differences between Medicare Supplement Plans and Medicare Advantage Plans before you commit to any type of supplemental plan. If you need AARP Medicare Supplement visit https://www.comparemedicaresupplementplans.org/