Medicare Supplement Premiums – On the rise?

Premiums are everything as far as medigap plan is concerned. Premiums are those payments that you normally contribute towards the plan each month or even in a yearly basis. How do we contribute premiums to Medicare supplement plans? Depending on your location, premiums can be contributed through a direct deduction from our salary account. If you are employed, then you will need to give a standing order so that the bank can deduct the specified amount and then remit it to the Medicare supplement insurance firm. On the other hand, if you are not employed or retired, your premiums can be deducted from your accrued retirement benefits.

aarp medigap plansPremiums can also be contributed directly by depositing the amount towards that insurance plan. This is basically for those individuals who are unemployed but have source of money. A business person can enroll in a Medicare supplement plan and contribute yearly or monthly depending on how he/she wants it. This brings us back to the question; “how or what methodology does the Medicare supplement insurance company use while setting our premiums?”

There are a number of factors which determined the rates of premiums for individuals. One of these factors is the age-rating method. Age rating is basically a method where a person will benefit more if he/she has attained the age of 65 and above. You can find AARP Medigap plans at https://www.medisupps.com/. The premiums are low and the benefits are attractive. For instance a person who has attained the age of 65 will have contributed more to the Medicare supplement plan he/she is enrolled in. With that idea at hand, you will find that the people or customers within that cohort will benefit from an extensive health care coverage.

The second factor which determines the rate of premiums one has to pay is the geographical location. Premiums depends on where you are located. For instance people enrolled in Medicare supplement plans may pay different premiums depending on the states they are. For example, a person living in Ohio will pay a different monthly premium from people in New Jersey simply because of their location.

The third factor that determined the rate of premiums you will be contributing is if someone is a smoker or not. In the event that someone has been determined as a smoker, he/she will pay a slightly higher rate of premium basically because they are rated as individual whose health risks are inevitable.

Medicare supplement plans (medigaps) 2019 overview

As the name suggests, medicare supplement plans are insurance policies which add value to original medicare plans. Original medicare plans exist in two distinct parts; Part A and Part B. These mainly cover for your healthcare services but not all expenses. For example, coinsurance, copayments and yearly deductibles are not covered by original medicare plans. Therefore, medicare supplement plans step in to bear those expenses.

How supplement plans work.

medicare supplement plans 2019There are ten medicare supplement plans in existence and they are named with alphabets. They include: plan( A,B,C,D,F,G,K,L,M) and N. Note that each supplement plan is similar in all states. For example, plan A in one state is the same as the plan A in another state. There are no variations no matter which insurance company you go to. You must have an original medicare in order to be eligible for supplement plans. For rates online for Medicare supplement plans in 2019 visit https://www.bestmedicaresupplementplans2019.com/.

 

Which Plans are Best?

You must also be 65 years and above to qualify for medigap plans in 2019. This is applied in all states, and no insurance company is obliged to give you a medigap policy if you don’t meet these requirements. To put things into perspective, let’s consider a sample situation. Supposing you have an outstanding bill for laboratory tests and x-rays and you have paid the annual Part B deductible. The medicare part B pays up to 80% of the bill. However, if you have a medigap policy which pays covers for part B copayments and coinsurance costs, then, it is the duty of Medicare part B policy to pay for the remaining 20% of the bill. Simple, isn’t it? Let’s look at some of the benefits covered by medigaps.

 

Medicare supplement plans 2019

 

Benefits covered by medigaps

Medigap plans K and L have a certain usage limit such that when this limit is reached, they cover the costs for the rest of the year.

All medigap policies cover: -Medicare Part A hospice coinsurance, Medicare part B coinsurance and the first three pints of blood received by hospitals.

Plans C and D cover for skilled nursing facility care coinsurance and Medicare Part A deductibles. On the other hand, medigap plans A and B do not cover skilled nursing facility care coinsurance.

Foreign travel exchange is partly covered by medigap plans C and D. This is up to 80%.

Generally, original medicare plans are not enough to cover all your health insurance needs. Therefore, you should get medigaps to boost your health insurance.