Medicare is confusing, and a lot of incorrect information about Medicare and Medicare plans gets passed around on the internet and in real life.
Our goal with all videos is to give you accurate information so you can make informed choices about your Medicare coverage.
So today, we are debunking five myths about Medicare Supplements, also known as Medigap plans.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
Myth #1. This Medicare Supplement company pays really well.
With other health insurance products, knowing whether your claims will be paid quickly and correctly by a particular company is important before applying.
With Medicare Supplements, it isn’t.
Here’s why: Medicare Supplement companies are not allowed by law to make claim decisions.
If you have Medicare Parts A and B and a Medicare Supplement, Medicare itself makes the decision whether to pay your medical claims.
For you, that means no matter which Medicare Supplement company you have, it is a company that pays well.
They all do.
They aren’t making the decisions about your claims and can’t hold up payment to your providers. Medicare makes the decisions and the Medigap company pays.
Myth #2. You can change your Medicare Supplement policy during the Annual Enrollment Period from October 15 through December 7 without having to answer health questions.
Nope.
Unfortunately, the advertising is unclear on this every year and confuses people.
During the Annual Enrollment Period, you can change your Medicare Advantage plan or Part D plan.
If you want to change your Medicare Supplement, unless you have a guaranteed issue right, you will have to answer health questions and pass underwriting to be able to purchase a new Medicare Supplement.
Myth #3. Past Medicare Supplement rates predict future rate increases.
Not really.
Looking at old rates is sort of useful.
If you see a company that comes into states with very low rates and then has significant increases after a few years, and that becomes a pattern in multiple states with that particular company, that can be somewhat helpful, but it doesn’t predict future rate increases.
Medicare Supplements are highly regulated by the government. Your Medigap company can’t single you or anyone else out for a rate increase, no matter what happens with your health.
Here’s how Medicare Supplement rates go up: Most Medicare Supplement companies have increases built into the premium based on age. You can see those increases on coverage charts before you apply.
Other increases have to be approved by the state department of insurance. Because these rate increases are based on the future medical usage of a group of people and factors like inflation in health care costs, it’s difficult to impossible to predict accurately.
Myth #4. Never give up Plan F or Plan G.
Plans F and G are the most comprehensive Medicare Supplements sold.
If your Medicare Parts A and B effective dates are January 1, 2020 or later, you are not able to purchase a Plan F. The most comprehensive plan you can get is a Plan G.
Being the most comprehensive doesn’t mean these are the best plans. It just means that they have the most coverage.
Because they have more coverage than other Medigap plans, and less out of pocket risk for you, they are the plans that start with the highest premiums and have the largest premium increases year over year.
They are the best option for some people. Not for everyone.
Medicare plans are not one size fits all. If a Plan F or G is the perfect fit for your friend, relative, or spouse, that’s great. It doesn’t necessarily mean it’s the best option for you.
Myth #5. You can’t change Medicare Supplements after your first six months on Medicare Part B.
Generally, that’s not true.
Different states have different laws regarding changing Medicare Supplements.
In most cases, once you are beyond your first six months on Medicare Part B, you will need to answer health questions, provide a list of medications, and pass underwriting to change Medicare Supplements.
More information about Medigap underwriting and whether your medical conditions could be an obstacle to purchasing a new policy, can be found here:https://youtu.be/br-4S0U912U
While you may not have the wide open field you did for Medigap plans during your first six months on Part B, there certainly are options to change your Medicare Supplement policy at almost all times.
Those are five of the most common Medicare Supplement myths.
There certainly is other misinformation out there regarding Medigap plans. If you have questions about Medicare Supplements, please feel free to call our office at 877-312-1414 or schedule a free, no obligation Medicare Plan Consultation.
We’re here to take the confusion out of Medicare and provide you with accurate information to choose the best possible Medicare coverage.
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