Colorado Medicare Supplement
The state of Colorado records one of the fastest growing senior citizen markets in the country, placing third in terms of the rate of increase. Latest reports from the U.S. Census Bureau show that across America in general, the number of adults aged 65 and older will surpass the number of children by the year 2035. While this increase is predicted to be slower in Colorado, studies forecasting that the older adults will outnumber children by the year 2050 is still cause for concern.
That said, the government and concerned private institutions are seeking ways to provide the elderly with the assistance and care they need when they reach their twilight years. Unfortunately, the government cannot shoulder all the expenses alone, even with programs like Medicare in place. This is the reason why Medicare Supplement insurance was created — to ensure that all senior citizens have access to the essential healthcare services they need in their old age wherever they are in the country, but without the financial burden to the state’s budget and the individual’s savings.
There are dozens of insurance agencies that sell Medicare Supplements in Colorado, so looking for one will not be a problem. The decision on which product to purchase will depend on your location, your finances, current health status, future health projection, and the provider itself.
Medicare Supplements 101
Applying for a Medicare Supplement, also called Medigap, is contingent on two things: 1) you have to be at least 65 years, and 2) you have to be already enrolled in both Medicare Part A and Part B. Medigap plans are sold through private insurance companies, although their list of benefits and governing rules are determined by the federal government. This is to ensure that all seniors, regardless where they are in the U.S. have the exact same entitlements under Medicare and Medigap.
Because insurance companies can set their own pricing for Medigap plans, and can also decide to sell only a few of the 10 standardized policies, you will have to do your research and compare offerings carefully before buying anything. If you are unsure about which type of plan is best for you, then you can get in touch with our licensed Medigap advisors to help you determine the most practical policy.
All Medicare Supplements include the following benefits:
– Medicare Part A hospital expenses and coinsurance (up to an extra 365 days after Medicare benefits are exhausted)
– Part A hospice care copayment or coinsurance
– Part A deductible
– Part B coinsurance or copayment
– Part B deductible
– Part B excess charges
– First 3 pints of blood
– Foreign travel emergency costs (up to plans limits)
As with any other insurance product, purchasing a Medigap plan means you will need to undergo medical underwriting. However, if you want to skip this process, you can do so by making sure that you enrol during your Open Enrollment Period (OEP). The OEP is the six-month window given to new enrollees, during which time insurance agencies are required to sell you any policy you want from their roster and not require you to undergo any health assessment prior. Signing up during the OEP also means that you can purchase your policy at a regular price; insurers will not be allowed to charge you higher monthly premiums for any reason.
The six-month period begins on the first day of the month that you are celebrating your 65th birthday. For instance, if your birthday is March 18, then your OEP begins March 1 and will end six months after. This is more than enough time to decide on a policy and take all the advice you need before buying. If you miss your OEP, you run the risk of getting denied your policy application or being slapped a much higher fee following a health status evaluation. You do not want this headache.
The most comprehensive Medigap plan is Plan F, which covers 100% of all the standard benefits, except the Part B deductible. Plan F also has a high-deductible version (HDF), which means that you pay for Medicare-covered expenses up to the amount of $2,300 (2019) before you Medigap policy pays anything. The most basic policy is Plan A, which covers 100% of only Medicare Part A coinsurance and hospital costs, Part B coinsurance or copayment, Part A hospice care coinsurance or copayment, and the first 3 pints of blood.
Comparing the Cost of Medigap Plans in Colorado
Colorado insurance agencies have different rates for their Medigap policies — and this is not a surprise. They are legally allowed to set their own rates and enhance each basic plan with more entitlements. Some providers offer special discounts to non-smokers, people, and married couples. They might also give lower rates for those who opt to pay through electronic funds transfer (EFT) and those who purchase more than one policy from them. If your OEP falls in the same schedule as your friends or family members, you might also want to enroll as a group to get special pricing.
Thus, it cannot be stressed enough that you should compare or ask for assistance for your search to ensure that your Medicare Supplement plan will not eat into your retirement savings unnecessarily. Take note the fees you shell out for your Medigap plan are on top of what you are already paying for your Medicare Part B.
They are plenty of ways to pay for your Medicare Supplement policy, such as by money order, check, or bank draft. Be sure that payments are addressed to the insurance company itself and not your agent’s name. If you are purchasing a plan through an agent, always ask for a receipt that bears the insurer’s name, address, and other contact details. Some providers also accept payments sent through EFT.
Have More Questions?
Navigating the information packed world of Medicare and Medicare Supplements can be overwhelming. Our team of expert and licensed Medicare and Medigap advisors are always at the ready to answer your questions and provide you with the assistance you need for make an informed decision on the policy that you are purchasing. Don’t hesitate to reach out to us at 1-800-791-0150.
