New Jersey Medicare Supplement
New Jersey residents who are turning 65 years old live in fortunate times, at least in terms of the availability of help in acquiring quality healthcare services. Most save up for retirement in the hopes of finally getting to travel, taking up a new hobby or just relaxing and not have to worry about money in their advancing age. However, when one has not prepared for the inevitability of illness or accidents, the cost of medical services can easily eat into whatever has been saved into retirement funds.
That’s why it’s a good thing that Medicare and Medicare Supplements exist — and that the U.S. government has taken bold steps to make sure these are available to all senior citizens.
There are four types of Medicare: Part A, Part B, Part C and Part D. Those who are interested in signing up for Medicare Supplements (also called Medigap) only need to be a member of both Part A and Part B to qualify. Unlike Original Medicare, Medigap policies are sold through private insurance agencies, though they cannot be purchased without a Medicare membership. Pricing is expected to vary from insurer to insurer, but the benefits will be the same regardless which state you are in. This is the government’s way of ensuring that all seniors get the same level of benefits.
Senior Citizen Statistics in New Jersey
According to the U.S. Census, 13% of the state’s total population is made of individuals aged 65 years and older — and a significant chunk of them live off limited budgets. Some 7% of senior households log an income of less than $10,000 per year, while 22% try to make do with less than $22,000 per year. In fact, around 31% of NJ residents aged 60 years and up are relying on food stamps to save money. Twenty-seven percent of their total numbers are also living alone.
These figures highlight how important it is to have insurance programs that will help augment expenses in the future. Medicare is a good start, but it still does not cover all of the possible expenses that seniors will face in the old age. Medicare Supplements, thus, step in to help provide the peace of mind that seniors (and their families) need.
Of course, there are other types of senior-focused insurance products out there. Original Medicare Part C (Medicare Advantage) also has similar services but with a more limited network of providers, while Part D takes care of prescription drugs.
At present, the average cost of Medicare Supplements in New Jersey is $157.66 per month or $1,892 per year. The state lists one of the highest rates in the country, with top spot occupied by Nevada at $158.66 per month and the lowest being Hawaii at $109.16 per month.
Who Is Eligible For Medicare Supplements?
If you are turning 65 years old and are enrolled in Medicare Part B, you are qualified for any of the 10 Medigap plans standardized by the government. Get in touch with Social Security or seek the assistance of a licensed Medicare Supplement advisor to determine which plan best fits your current and projected healthcare needs, as well as your budget.
The actual price of your Medigap plan will depend on the type of policy and the insurance company selling it, so it’s best to compare plans first before signing up for any policy. Take note that while the government requires that all Medicare Supplements have the same benefits across the country, regardless of the seller, the companies are allowed to set their own premium rates as they see fit.
Important Medicare and Medigap Schedules For NJ Seniors
There are two important schedules that seniors in New Jersey should watch out for when they are enrolling for the first time: Initial Enrollment Period (IEP) and Open Enrollment Period (OEP).
IEP is the seven-month period before and after your 65th birth month. This covers the 3 months before the month you turn 65 and the 3 months after it. If you are not auto-enrolled to Original Medicare, or must pay a premium for Part A coverage, you may sign up during the IEP period. However, if you miss IEP, you will need to enrol during the General Enrollment Period, which begins in January 1 and ends March 31 every year.
The Open Enrollment Period applies to Medicare Supplements, which you may apply for the moment you are enrolled in both Original Medicare Part A and B. OEP is a six-month window that begins on the first day of your 65th birthday month.
For example, if are turning 65 on July 5, your OEP starts July 1 and ends six months after. During this period (OEP), your Medigap application is guaranteed approved and insurers will not require you to undergo any medical underwriting or charge higher fees for any reason. However, if you miss the OEP, you can be denied a policy or be asked to pay higher monthly premiums.
The many details surrounding Medicare and Medicare Supplements can be intimidating, especially if this is your first time to apply. Our team of licensed Medicare and Medigap advisers are always ready to answer your inquiries, and even assist you every step of the way until you finally land the policy you want and need. Get in touch with us at 1-800-791-0150.
