Of the three options listed below, you will never lose your Original Medicare (as long as you pay your Part B premium). There is a myth that if you sign up for a Medicare Advantage Plan (we will talk about this below), you will lose your Medicare.
This is not true. Keep that in mind as we discuss the 3 options.
Option #1: Only Use Medicare with a Prescription Drug Plan
This is NOT what we recommend. There are too many other options that cost very little and can save you tons of money in the long run.
This option is basically 80-20 insurance. Medicare pays 80%. You pay 20%. Your 20% comes AFTER you meet Part A and Part B Deductibles.
The reason we do not recommend this options is because there is no cap to your cost with original Medicare.
In other words, if you have a bill for $100,000, you will be required to pay your 20%, which is $20,000.
You can see that your exposure to financial setback is extremely high. That is the main reason we do not recommend this option.
Option #2: Medicare Supplement with a Prescription Drug Plan
A Medicare Supplement is an insurance policy designed to pay what Medicare doesn’t pay. In other words, it pays your 20%.
A few things you need to know:
- It has a monthly premium
- It does not cover Prescription Drugs (you need to drug plan for that)
- It goes up based on your age
- It can go up if the company applies for an increase in rates (because they aren’t making money)
- It could require medical underwriting ***
These are a few of the major considerations to keep in mind.
This works well for people who can afford the monthly premium and want to pay ‘upfront’ and not worry about it.
Option #3: Medicare Advantage Prescrption Drug Plans
These are plans with companies that have a contract with Medicare to provide your medicare coverage to you. They are often called ‘Medicare Providers.’
Many of these companies have plans with a zero monthly premium.
Instead of you paying an upfront premium, you will pay for services as you go.
For example, you might pay a small co-pay when you see your doctor. Or a copay when you go to the hospital.
They also offer things Original Medicare and Medicare Supplements do not offer. Things like Dental, Vision, Hearing, and other benefits.
Each plan is different, so you need to read the fine print to make sure the plan works for you.
OR…let me discuss your options to see what works best for you. I can do the leg work for you and review these options so you don’t have to read every piece of mail that comes to your mailbox.
One More Thing To Consider
You might qualify for extra benefits from either the Federal Government or the State.
I help people see what they qualify for and help them fill out the paperwork. (it can be confusing but I’ve done it hundreds of times).
That’s it in a nutshell. I know it is a lot to digest.
If you would like clarification…or to discuss your options, view my calendare and set a time for us to talk.