Turning 65 - What About Medicare?

Once a person reaches the age of availability for medicare they have many questions surrounding what it covers and even more questions about medicare supplement insurance. This is insurance provided by private companies, for a fee, that allows for gap coverage. It is a way to supplement medicare and prepare for the unexpected. The cost for medical care is high, and when something unforeseen happens, the need for gap insurance becomes critical. No one should take the chance.

Once retirement age arrives, there is no excuse for not being prepared. Of course the recent economic downturn has hurt many retirement funds, and some people never saved properly to begin with. Still, medical expenses continue to eat a huge portion of the retired person's budget, and when an emergency arrives the importance for supplemental insurance is easy to see.

It is not a concern for whether or not to invest in supplemental insurance. It is a matter of which plan to use. The good news is that here are any number of plans available. The benefits vary and the price follows as expected. Those looking to make a purchase must make certain they are well aware of their many options before making the very critical decision of which plan to pursue.

There are ten standard plans for medicare supplement insurance, also knows as Medigap insurance. Some are more expensive than others, and some are not available in certain states. Where there are unavailable plans in some states, a plan that similarly matches is generally offered. This means that even in those states an equivalent level of benefits can be obtained for a similar price.

One thing of importance to note is that the benefit these plans offer are the same from one company to the next, however the premiums are frequently very different. Understand that paying more does not equal more benefits for a given plan. Even the process of making a claim is the same. There will surely be salespeople who indicate otherwise, however the law overrides their sales pitch ever time.

On the first of January of each year, adjustments are made to the price of the premium as a result of inflation. Because the benefits through a supplemental plan follow those of medicare, the premiums for the supplemental plane will increase for this reason every year.

Prices for these plans are set in three ways. One is called attained age. In this price plan, premiums will increase due to inflation as well annually every 1, 3, or 5 years. Still, this is often the least expensive option. The next is issue age. Cost here is based on a persons age when they sign up. There are no increases in premiums other than the annual inflation adjustment. Finally, community-rated plans offer premium prices based on geographic location.

So there are many options to chose from when one reaches the age of Medicare. It is important to understand all the benefits, the rules for the state you are in, and that paying a higher premium does not include better benefits. Take the time to become well versed in your options and chose the plan that is most suited to your personal needs. If you are looking for more information on Medicare, visit this Medicare blog.