Washington DC Medicare Supplement
As the baby boomer generation hits its twilight years, there is increasing concern over the availability and cost of healthcare products and services to meet this surging demand. According to the Population Reference Bureau, the number of Americans aged at least 65 years old is expected to increase by more than 100%, from 52 million recorded in 2018 to as many as 95 million by the year 2060. That said, the percentage of seniors’ vs the general population will have gone up from 16% to 23%.
Washington DC is no exception. Of 711,500 population estimated in 2019, around 80,000 are senior citizens, and this number is only projected to rise further. The old age dependency ratio is at 16.8, which means there are nearly 17 elderly individuals for every 100 persons aged between 20 and 64. Even if with an also increasing number of over-65 individuals who are still part of the workforce, thus maintaining a stable source of income monthly, the rising cost of healthcare and living expenses related to aging is cause for concern.
Medicare, the insurance coverage provided by the federal government, offers a robust list of benefits that will help subsidize the cost of hospitalizations and outpatient procedures. However, being a government provision, it cannot shoulder all of the expenses that might be incurred at this life stage, because that would mean reducing the budget allocation for other public health services.
This is the key reason why Medicare Supplements were created. Also referred to as Medigap, such insurance plans aim to fill in the “gaps” that the original Medicare program could not satisfy. Although sold via private insurance agencies, their list of benefits is determined and regulated by the government. This is to ensure that all senior citizens, whether residing in Washington DC or any other state, have access to essential healthcare products and services to support their needs as they get older.
Medicare Supplements: What You Need to Know
There are 10 Medigap plans being sold in Washington DC (as with most other states) and they are identified by letters: A, B, C, D, F, G, K, L, M, and N. All plans of the same letter, regardless where they are sold in the country, have the same benefits, though they might differ in terms of pricing. Other insurance providers might also offer extra features and benefits to the basic policies, but they will never undersell. The government carefully monitors the activities of Medigap sellers so that seniors are assured of getting the basic minimum benefits due them.
In order to qualify for any of the Medicare Supplement plans, you must be at least 65 years old and enrolled in both Medicare Part A and Part B. The best time to purchase one is during your open enrollment period (OEP), which begins on the first day of the month that you turn 65 years old and ends six months after. During this period, you are guaranteed approved for any Medigap policy you apply for with any insurer of your choice. You will not be required to undergo medical underwriting, nor will you be held back because of a pre-existing health condition. However, if you miss this window, you run the risk of being denied coverage or charged a higher monthly fee for your plan.
Take note that Medicare Supplements in Washington DC do not include prescription drug coverage. The same goes for any other location. They also do not include long-term care as in a nursing home, vision and dental care, hearing aids, eyeglasses, and private duty nursing. If you are interested in acquiring coverage for these, you will need to ask your insurance provider about getting a separate policy or bulking up your current Medigap plan with a rider, for an extra fee.
Cost of Medigap Plans in Washington DC
The highest average cost for Medigap plans in the US is found in Massachusetts (at $162.25 per month), while the lowest is in Hawaii (at $109.16 per month). Washington DC falls in the mid-range among the 50 states at $139.75 per month, or $1,677 per year. Bear in mind that these values can go higher or lower, depending on the provider, the location, and other extra benefits. Thus, you should scout your location first for agencies that sell Medigap and compare their pricing details before making a decision.
Some insurance companies offer discounted pricing for women, non-smokers, and spouses. If you are buying with friends, you might also get a special price for group purchases. Another thing you should note before signing any contract is its price-increase policy. Some insurance companies set their prices low initially but then increase alongside your age, while others offer fixed pricing based on the age you were when you bought the plan. Be sure to ask about its price adjustment policy so you don’t get surprise billings in the future.
Questions? We Can Help!
With the many updates on Medicare and Medicare Supplements, mastering how everything works can be overwhelming. We can help you evaluate which type of plan is best for you and lay out all your possible options so you can make the most informed decision. With changes being applied to their guidelines yearly, it’s best to be updated with the adjustments. Our team of licensed advisors are more than happy to provide assistance and answer any question you might have. Don’t hesitate to contact us at 800-791-0150.
