Delaware Medicare Supplement
The cost of healthcare and medical assistance tends to increase with age — and this is all the more felt among retirees, who will most likely no longer have any regular source of income. Some Americans opt to prepare for retirement way before it even hits, so that they can continue to live comfortably when the time comes. However, as most are just living from paycheck to paycheck, the having ample funds as retirement savings is difficult to achieve. This is why government-assisted insurance programs like Medicare and Medicaid exist.
Medicare is federally funded and its goal is to provide basic health insurance to citizens at least 65 years old (and other special individuals under the said age). However, as the government also has other concerns to address, it simply cannot allocate a huge chunk of its health budget just for seniors. It is for this reason why Medicare Supplements (also called Medigap) are an important discussion. Basically, Medigap is optional, but given the cost of medical assistance nowadays, it is often seen as necessary.
How Medigap Works
A Medicare Supplement is a private health insurance product that is designed to fill in the gaps the Original Medicare is not able to cover. These include coinsurance, copayments, and deductibles. Its purpose to make it easier for senior citizens to finance their medical expenses and general healthcare needs as they age, without these having to eat into their retirement savings (if any). For many seniors, Medicare Supplements are a godsend because, depending on the type of policy they have, they can bring their hospitalization or care expenses down to almost zero.
How does it work? First, Original Medicare pays its share of Medicare-approved amounts for covered costs. After which, Medigap steps in to pay its share. Note that Medicare does not shoulder any of the expenses linked to a Medigap policy. In addition, the monthly premium you pay for a Medicare Supplement is placed on top of what you are already paying for your Medicare Part B. While the idea of paying two fees can be intimidating at first, you’ll find that when an emergency does happen, having both can slash a huge chunk off your total bill in the end.
Types of Medicare Supplements and What They Cover
There are 10 types of Medigap plans, named alphabetically. All of these are monitored and regulated by the federal government to ensure that all seniors across the United States get the same level of benefits, even if they are sold through private insurance agencies. The mix of benefits also varies depending on the type of plan you choose, but these generally include the following:
– Part A hospital costs and coinsurance (Medicare)
– Part B copayment or coinsurance (Medicare)
– Part A hospice care coinsurance or copayment
– Part A deductible
– Part B deductible
– Part B excess charges
– First 3 pints of blood
– Skilled nursing facility care coinsurance
– Foreign travel emergency (up to plan limits)
Copayments and coinsurance are a form of cost-sharing for healthcare services between the insurance provider and the policy holder. Copays are flat fees, while coinsurance are usually computed as a percentage of the cost of the drug or service that a member pays after they have reached a deductible amount.
How and When to Apply for Medigap Coverage
The best time to apply for any Medigap plan is during your Open Enrollment Period (OEP). This begins on the first day of the month in which you turn 65 years old (and are enrolled in Medicare Part B) and then ends six months after. During this time, there are three things that an insurance provider cannot do: 1) refuse to sell you any Medigap plan it offers or reject your application, 2) charge you a higher monthly premium due to past and current health issues, and 3) make you wait for your coverage to start.
It is important to buy a policy when you are first eligible because not only will you be guaranteed approved, you might also be able to obtain better prices and more choices. If you miss your OEP, insurance companies will then have the right to use medical underwriting in their decision whether or not to approve your application. This means there is no guarantee of approval. Either that, or you might be forced to pay a higher monthly premium.
Senior Citizen Statistics in Delaware
In 2015, Delaware recorded over 150,000 people aged 65 years and up and expects this number to grow to over 200,000 by 2020. This number is only expected to increase even more as the years pass, with 2050 projections reaching more than 250,000 by the year 2050. Those aged 75 and up and 85 and up are expected to log the highest rise at 134% and 213%, respectively, which can only mean a great number of individuals possibly needing home care or access to assisted living facilities.
There are plenty of insurance agencies offering both Medigap and other form of private insurance product geared towards people in their twilight years. Plus, the cost of healthcare is only likely to increase further. That said, while Medigap plans are in principle optional, they should be treated as a necessary part of signing up for Original Medicare.
As of the year 2018, the average cost of a Medigap plan in Delaware is $144.16 per month, or around $1,730 per year. The actual rate can go higher or lower, depending on the insurance provider.
Comparing Medigap Costs
The cost of Medigap policies may vary according to your location and the insurance company providing them. This means there will be differences in the premiums for exactly the same coverage. This is why it is important that you shop around first to compare rates and service features. You should also consider the type of pricing scheme the company uses, in order to avoid surprise increases down the line. The policy you are eyeing might be attractive now because it’s cheap, but if you read the fine print, you might find that the company increases its fees regularly, which can be a problem in the future.
Depending on the company’s policies, some offer special discounts for non-smokers, women, or those who are married and are purchasing for two people. You can also get a lower rate if you pay annually or prefer to make payments electronically. If you purchase a Medigap plan along with a group of friends, you might also be given a group rate. Find out what your prospect insurance agency offers in terms of discounts and add this to your list of considerations before signing up for anything.
The process of purchasing a Medigap plan is fairly easy, provided you already have Medicare Part A and Part B. First, decide on what types of benefits you want based on your past and current health status, as well as future health projection. Then, find out with insurance providers sell your preferred plan in your state, after which compare their services and cost. When you have settled on one, buy the policy.
The details surrounding Medicare and Medicare Supplements can be challenging at first, but we have a team of expert and licensed Medigap advisers who can guide you every step of the way. Do you have questions about Medigap? Are you still undecided which policy is the right one for you? Get in touch with us at 1-800-791-0150.
