If you took a poll and asked every American adult if they were interested in saving money on health insurance, what would the answer be?
An overwhelming: Yes!
As evidence of this, just take a look around. Every day healthcare is in the news.
-New legislation to help small businesses make healthcare more affordable.
-Newer high-deductible plans from insurance companies to help make premiums lower.
-Tax deferred plans for healthcare savings.
And...for those age 65 and over and enrolled in Medicare, saving some money on health insurance premiums whenever possible is a high priority.
Why is this?
Because, contrary to some popular beliefs, it DOES cost something to have Medicare. For instance, there are: Part A deductibles, Part B coinsurance, Part B premiums and more. The average senior healthcare consumer can expect to be out of pocket for many healthcare services.
One of the biggest out of pocket cost worries for Medicare beneficiaries is the Part B coinsurance. Original Medicare covers 80% of approved services for Part B. The rest is out of pocket.
That is...unless you have a Medicare Supplement - or Medigap - Plan.
Medigap plans cover most of the costs that Original Medicare makes you pay out of pocket otherwise.
But, there are many different Medigap plans out there. They are not all created equal. One Medigap Insurance plan option that could save you money is called Medicare SELECT.
What's the difference between a regular Medigap plan and Medicare SELECT?
With a regular Medigap plan, you can pretty much go to any healthcare provider that accepts Medicare. Medicare will pick up most of the tab and then your Medigap company will pay for the rest.
With a Medicare SELECT plan, you are given a list of providers you can use where your Medigap company will pay. Medicare will pay their portion no matter what as long as the provider accepts Medicare. But if you use an 'out of network' provider, your Medicare SELECT company will not pay.
Those Medicare enrollees that are used to being part of an HMO or PPO with their former insurance will be used to the 'in-network' versus 'out-of-network' provisions of this type of insurance.
So, what's the draw with Medicare SELECT?
Here are a couple to think about...
First of all, in many instances the premiums are less for a Medicare SELECT Medigap plan than for a regular Medigap Plan. This is where the cost savings can come into play. Premium differences range between companies. Talk to a trustworthy licensed Medigap agent for a detailed quote comparison.
Every little bit helps.
Secondly, you can typically chose any Medigap plan (A, B, C, D, F, G, K, L, M, N) that is available in your state for a Medicare SELECT plan.
Bottom line: Medicare Select policies are not available in all states. If you are OK with limited provider choices (check out the provider list ahead of time) then you should get a quote and at least compare your options. You might be able to save more money than you thought possible.
Adam J (A.J.) Davis is one of the nations leading experts in senior health insurance matters. He is an independent licensed agent in 12 states and founder of The Medigap Experts - an agency focused on saving money on health/dental/prescription drug insurance for those age 65 and over. He is the author of "How to Avoid 7 Critical Medigap Mistakes" - a consumer awareness guide. You can view this guide right now by visiting: http://www.themedigapexperts.com/
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