Medicare Supplements 101 Revisited for 2017
If you’re not an expert in Medicare Supplements, it’s time to get educated! Our Medicare Supplements 101 article and webinar is here to help! Newly updated for 2017, this article will help you get started now! Medicare Supplement (Medigap) plans have been around almost as long as Medicare, and just like Medicare, have transformed over the years. It began as a variety of different coverages state by state, and was ultimately standardized by Medicare in 1992. The Omnibus Budget Reconciliation Act of 1990 replaced many voluntary guidelines with new Federal standards. Nearly all states adhere to these standards with a few exceptions. Massachusetts, Minnesota, and Wisconsin are three states complying with Federal guidelines without using the standardized A through N plans. Medicare Parts A and B cover most medically-necessary inpatient and outpatient services. Unfortunately for consumers, Medicare does not cover all medical costs, leaving beneficiaries responsible for a portion of the costs. Let’s take a quick look at Medicare Part A and B, and then take a look at Medicare Supplements 101! The two largest costs associated with Part A are the Hospital Deductible ($1316 in 2017) and days 21-100 ($164.50 co-pay per day) of the Skilled Nursing Benefit. There are also some costs associated with Hospice care which Medicare does not cover. Medicare DOES NOT cover the cost of room and board if someone is using a private hospice facility. While the Hospice benefit does cover the doctors and additional care needed, it does not cover the facilities charge of around $300 per day in a nursing home or skilled nursing facility. As you can imagine, the bills pile up quickly! Part B has a yearly deductible ($183 in 2017) and 20% coinsurance for all Part B-covered services, including chemotherapy. There is no cap on how much a beneficiary is responsible for under traditional Medicare Parts A and B so chemotherapy treatments for example, could be financially crippling. Keep an eye out for more information on Medicare Supplements 201, Open Enrollment, Underwriting and Guaranteed issue situations.A Brief History
Medicare Part A
Medicare Part B
Medicare Supplements 101 to the Rescue!
Depending on the plan, Medicare Supplement A through N policies cover all or a portion of the gaps in Medicare coverage. Because of the Federal standardization, the included benefits for each plan type is identical across all insurance carriers. The only difference is the premium. It is no coincidence that 57% of all Medicare Supplements have enrolled on Plan F policies- the benefits are generous and the added coverage provides financial protection.
This is a just brief overview of Medicare Supplements. For an in depth explanation and more, click the button below for the recording of Part 1 of our webinar series on Medicare Supplements.
Contact us today to get contracted with the highest rated carriers in your area. Many plans are only competitive in certain zip codes so don’t be fooled by all their hype. Call 1-800-997-3107 and let us help you with all of your Medicare Supplement contracting needs.
Updated 3/6/2017; Originally Published 5/16/2016