New York Medicare Supplement Plans
New York has one of the most rapidly growing senior populations in the country, with Census data recorded as of 2017 revealing that residents aged 65 and older make up 16% of the state’s total population. This is more than other age groups, with elderly numbers outpacing the overall growth in 20 of its largest counties and cities. To be more concrete, one in six New Yorkers is at least 65.
This growth is both good and bad news for the local government and insurance providers in the area. Good because as more people qualify for Medicare, private insurers are stepping up their sales and marketing strategies to attract this new batch of clients for Medicare Supplement plans. This can mean cheaper premium fees in the long run, though New York is still listed as having one of the more expensive monthly averages in the country. On the other hand, the government-provided Medicare program could struggle to keep up with the rising demand, especially as the population growth for those who are younger (and are responsible for paying taxes) is much lower.
The number of elderly New Yorkers grew 26% in the past decade, compared to an overall population growth of just 3%.
New York Senior Citizen Statistics
The rise in the elderly’s population is evident in all New York cities. In Yonkers, seniors make up 17% of the total population. New York City follows with 14%, Albany has 13%, while Buffalo, Rochester and Syracuse each have 12%. In terms of the fastest growth of senior numbers, Saratoga County led in the state with a whopping 55% increase in the past decade. Orange County follows with a 40% rise, and then Duchess County with 36%.
The government attributes this growth with the increased number of emigrations by the young and the fact that senior citizens are simply living longer. The population of those aged 85+ has gone up 26% over the same period.
The qualifying age for Medicare and Medigap plans is 65 years old, which means that there will be a high demand for medical and assisted living products and services. According to the Kaiser Family Foundation, the total number of Original Medicare beneficiaries in 2018 was recorded to be 2.2 million. That said, we can expect to see more insurance providers offering Medicare Supplements and Medicare Advantage products in the next years.
Eligibility for New York Medicare Supplements
New Yorkers interested in Medigap have to be 65 years old AND enrolled in both Medicare Part A and Part B to be able to apply. Take note that the monthly premium collected for a Medigap plan will be paid in addition to what you are already paying for your Medicare Part B coverage.
What Medicare Supplements Cover
The benefits included in Medigap policies sold by New York insurance agencies are based on the standardized list provided by the federal government. These are:
- Part A coinsurance and hospital costs (up to 365 days after Medicare benefits are used)
- Part B copayment or coinsurance
- First 3 pints of blood
- Part A hospice care copayment or coinsurance
- Skilled nursing facility care coinsurance
- Part A deductible ($1,364 in 2019)
- Part B deductible ($185 in 2019)
- Part B excess charges
- Foreign travel emergency (up to plan limits)
The mix of benefits available will depend on the type of Medicare Supplement plan you buy. Plan F offers the most comprehensive list, but this will no longer be sold to new enrollees starting January 1, 2020. This is because Congress has mandated that Medigap plans paying for the Part B deductible should be scrapped. The next option in terms of benefit inclusions is Plan G, which offers the same list but without the Part B deductible. If you have already purchased Plan F, you may remain with your policy.
When to Apply for New York Medicare Supplement
The best time to sign up for a Medigap plan is during the Open Enrollment period. This is the six-month window that begins on the first day of the month you turn 65 years old. For example: If your 65th birthday is April 12, then Open Enrollment begins on April 1 and ends 6 months thereafter.
During this time, you may apply for any Medigap policy you want from any New York insurance provider. It also means that your application is guaranteed approved, and it will not be subjected to medical underwriting. You will also be billed according to regular premium fees and will not be charged higher because of a past or current health condition.
Cost of Medicare Supplement in New York
As of 2018, the average cost of monthly premiums for New York Medicare Supplements is $149.42/month, or $1,793/year. The highest per-month averageNevada is recorded in Nevada at $162.25. Hawaii has the lowest at $109.16. This rate is just an average of what insurance companies charge in the area. The premiums can go lower or higher depending on the company selling it and the type of Medigap plan.
The cost of Medicare Supplements is different per company, even if they’re offering the same benefits. When shopping around for insurance providers, find out which ones offer Medigap plans and which of the ten standardized policies they offer. Not all insurers have the 10 on their list of products; with some only offering the most popular plans.
Others can also offer special pricing based on some factors, such as whether the insurance firm offers special discounts for couples, women, non-smokers, if you are willing to pay annually, or if you’re interested to buy any of their other insurance policies on offer.
Note that the most comprehensive plan is not always the best one for you. Most of the time, New Yorkers pay a high premium for benefits that they do not really get to use and do not need. In choosing the right Medigap plan, you must consider your past and current health status, your projected health status, your income and your lifestyle. An experienced Medigap advisor can help lay out options for you so you are sure to be paying only for what you truly need. Keep in mind that Medicare Supplements are designed for one person only. Spouses should apply for plans separately.
Key Updates on Medicare Supplements
There are certain changes happening to Medigap starting January 1, 2020. As mentioned earlier, plans sold to new Medicare members in New York will no longer include the Part B deductible benefit. This means that Plan C and Plan F will no longer be available to new Medicare members. However, those who are already enrolled may continue to still use them.
In addition, Plan D and Plan G policies purchased on or before June 1, 2020 will offer different benefits from the ones bought before the said date. Plans E, H, I and J are also no longer being sold to new enrollees, although you may continue to keep them if you are already enrolled.
Understanding New York Medicare and Medicare Supplement plans can be confusing. If you need help on how to go about Medigap plans or don’t know where to start, our licensed Medigap advisors will happily guide you through the whole process. Contact us at 1-800-791-0150.
