Choosing a Policy to Cover What Medicare Doesn’t
The New York Times, October 14th, 2009
PEOPLE over 65 should buy a Medigap policy, consumer advocates say, but picking
a Medigap plan can be difficult, and at least one important health care
bill heading for a vote in the Senate could make it even harder.
The plans, which are sold by private insurers, are supposed to help
fill the considerable gaps that deductibles and co-payments leave, the
difference between what Medicare enrollees receive from the government and what they owe doctors and hospitals. Medigap offerings come in a dozen different varieties, labeled Plans A to L.
Choosing
a plan is particularly tricky for consumers because monthly premiums
for identical coverage can vary by hundreds of dollars from one company
to another. Rates also vary by area of the country and age of the
enrollee, and in many cases by gender. Still, the advantages of the
coverage, for everyone who can afford it, make the hard work of
shopping around a good investment.
Why
buy a Medigap policy when you turn 65 and become Medicare-eligible,
even if you don’t expect to need it for years? A reason, of course, is
that people cannot anticipate what might befall them. Consumer
advocates also point out that under some state laws, those who delay
end up paying higher monthly rates or being rejected for health reasons.
Adding
complexity to the calculation is the possibility that Congress may cut
back on the current 100 percent coverage of medical bills for people
who wait to buy their first Medigap policy. The Senate Finance
Committee, looking ahead to 2015, is calling for new co-pays for
doctors’ visits under Medigap. If the provision is adopted, new
purchasers might be charged $5 for a visit to a primary care doctor and
$15 or $20 for a specialist, committee aides say. The change is
intended to discourage medically unjustified visits.
Darlene
Mastro, who had retired early, said she “couldn’t wait” to be 65 and
eligible for Medicare. But when she telephoned the local offices of
several companies to ask about Medigap
insurance, she was disappointed by the response.
Read more of this article.Supplemental Medicare Insurance: work with a pre-screened insurer
to find the right Medicare Advantage program for you and your medical
needs.About Reverse Mortgages: Learn all about reverse mortgages at NewRetirement.com
Professional Financial Advisors: Find out what a financial advisor can do for you at NewRetirement.com.