CDIS Blog
If you are about to turn 65 or already eligible for Medicare, but currently receiving health coverage through your spouse, you may be wondering if you need Medicare. Part A is free for most people, and it doesn’t hurt to sign up even if you have group insurance through an employer. However, there are some things to consider that can help you decide when to enroll in Medicare.
Determine if Medicare or Group Insurance is the Primary Insurer
The size of your employer often decides whether or not you can delay enrollment in Part B without paying a penalty. In companies with fewer than 20 employees, Medicare automatically becomes the primary insurer, with group insurance secondary. If you learn that your current insurance will become secondary to Medicare, then you should take Part A and Part B when you are first eligible. The reason for this is that secondary insurance only pays after the primary insurer pays, and pays very little. If you choose to delay Medicare, you will not have a primary insurer, and your out-of-pocket costs will be high.
On the other hand, if your employer has more than 20 employees and you learn that your group health insurance will remain the primary insurer with Medicare coverage second, then you may not need to enroll in Part B immediately as your current coverage will cover your needs.
Find Out if Your Group Insurance Changes After You Become Eligible for Medicare
After determining who will be the primary insurer, look to your benefits. In some cases, group insurance works differently once you become eligible for Medicare. Learn if your benefits will change, and then decide if it’s worth having both types of coverage or delaying enrollment in Part B. Unlike Part A, Part B isn’t free—once enrolled, everyone pays a monthly premium. Find out how your current coverage works once you or your spouse turn 65 and then decide if it makes sense to enroll in Part B or delay enrollment until a later date.
With Group Coverage, You Qualify for a Special Enrollment Period to Enroll in Medicare
The good news is, that if you have group coverage and missed your Medicare Initial Enrollment Period, you can still enroll in Part B without paying a penalty. As long as you have group coverage, you qualify for a Special Enrollment Period. And, you have an additional 8 months after losing group coverage to enroll in Medicare without paying a penalty. You’ll also get a guaranteed right to buy Medicare Supplement Insurance for six months after enrolling in Medicare Part B.
References:
https://www.medicare.gov/sign-up-change-plans/get-parts-a-and-b/should-you-get-part-b/should-i-get-part-b.html#collapse-5783
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CDIS Blog
The Medicare Part D Prescription Drug ‘Extra Help’ Program was created by the Social Security Administration to help people with limited income pay for their medication. Recipients of Extra Help pay lower drug premiums, copayments, and deductibles. As a member of Medicare, you are entitled to purchase a Prescription Drug plan. And, if you have limited resources, you may be entitled to receive help paying for monthly premiums, annual deductibles, and copayments. Many people are unaware that they qualify for Extra Help, and could be missing an opportunity for big savings.
Qualifying for Extra Help
The Social Security Administration determines who qualifies for Extra Help by looking at the value of their total savings, investments, real estate, and income.
Resources Bank accounts, stocks, bonds, mutual funds, retirement accounts, and available cash are all considered to determine financial eligibility. While the value of some real estate is considered, your primary residence is not. If you own your home, its value is not considered part of your total resources. In addition to your home, personal items such as jewelry, furniture, and vehicles are not considered. Rental property and life insurance policies are also not included as part of your financial resources.
Applying for and Receiving Extra Help
If you believe you may qualify for Extra Help, you can apply online, by phone, or in person at your local Social Security office. After your application has been reviewed, you will receive a letter by mail informing you if you qualify. To receive Extra Help, you will need to provide proof of your Part D plan. A “Notice of Award” from Social Security is documentation that you qualify and proof of eligibility for Extra Help.
Resources:
https://www.ssa.gov/pubs/EN-05-10508.pdf
https://www.medicare.gov/your-medicare-costs/help-paying-costs/extra-help/level-of-extra-help.html
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CDIS Blog
If you’re spending time reviewing your options with Medicare Advantage (Part C) but you’re confused by zero premium plans, you’re not alone. How can some Part C plans offer coverage with no premium, and why wouldn’t everyone sign up for one? At first glance, premium-free Medicare Advantage sounds great. But you need to be careful. Here’s why some Medicare Advantage plans have a zero premium, and why this may not be the least expensive way to go.
Private Insurance Companies
Private insurance companies often sell Medicare Advantage plans with low or zero monthly premiums. How can they afford to do it? Insurance companies selling Part C agree to provide plan recipients with all of their Part A and Part B Medicare benefits. That’s why when you sign up for Part C, you receive your Part A and Part B benefits through your Part C plan, not through Original Medicare.
In exchange for providing these benefits, the federal government agrees to make monthly payments to the insurance company to cover the cost. Some companies make deals with hospitals and doctors for reduced rates—savings they often pass on to their members. This is how Medicare Advantage plans can offer additional benefits above and beyond Original Medicare, like dental, vision, and eye care, as well as senior fitness programs.
You Monthly Premium Is Only Part of Your Cost
A Part C plan with no monthly premium may be right for you, but it’s often not the most cost-effective solution. Why? It has to do with other expenses—deductibles, copays, and even out-of-pocket maximums. The monthly premium is only part of your costs and you should look carefully at the specifics of each plan to determine what you will be expected to pay.
Other Factors That Impact How Much You Pay for Medicare Advantage
Despite zero premium plans, most people with Medicare Advantage do pay a monthly premium. Here are some other factors to consider, in addition to premiums, that impact how much you pay for Medicare Advantage.
Whether or not your plan pays your Part B premium.
The amount of your deductible.
How much do you pay for each visit or service (copayment, coinsurance)?
The type of plan you have and if you use in-network providers or go out of network for care.
The plan’s out-of-pocket maximum.
Of course, the type of health care you need and how frequently you receive it also plays a role in how much you ultimately spend for health care with a Medicare Advantage plan.
References:
Medicare Advantage Costs https://www.medicare.gov/your-medicare-costs/medicare-health-plan-costs/costs-for-medicare-advantage-plans.html
CMS.gov https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/CMS-Fast-Facts/index.html
Medicare Advantage Costs and Facts https://www.medicareinteractive.org/get-answers/overview-of-medicare-health-coverage-options/medicare-advantage-plan-overview/what-is-a-medicare-advantage-plan
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CDIS Blog
Each fall, if you are enrolled in a Medicare Advantage plan or a Medicare Prescription Drug Plan (Part D), you will receive a “Plan Annual Notice of Change” (ANOC) in the mail. If this is your first notice, or you’re unsure what you are supposed to do with this information.
Annual Notice of Change
In late September, members of Medicare Advantage and Part D will receive a “Plan Annual Notice of Change”. The ANOC is sent by your plan to inform you of any changes in coverage, costs, or service area that will take effect in January. All Medicare plans are required to send this document no later than September 30, or 15 days before the start of the Annual Enrollment Period. The ANOC is usually mailed with your plan’s Evidence of Coverage (EOC), or documentation that goes into more detail about all of your plan’s cost, coverage, and benefits—beyond any new changes.
Review Changes
In September, when you receive your ANOC in the mail, you should review any changes to make sure your plan will continue to meet your needs for the upcoming year. Plans often make annual changes to costs and benefits, which means that your copay could change, as well as which providers are in-network or out-of-network. When reviewing be sure of the following:
Providers, services, and prescription drugs you use are still available and covered under your plan.
Any out-of-pocket cost for care and services is understood.
If you decide that upcoming changes to your plan will not fit your needs, you may want to change your Medicare coverage during Annual Enrollment (October 15 – December 7). This is your time to review available plans to find one that meets your individual needs best. Of course, if your plan isn’t changing, or new changes will not affect you, you don’t need to do anything at all and you will continue to receive the covered services and care you have now.
Note: If for some reason you do not receive this document by September 30, contact your plan immediately.
References:
https://www.medicare.gov/forms-help-and-resources/mail-about-medicare/plan-annual-notice-of-change.html
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CDIS Blog
For many seniors, Medicare is a big help. It covers a substantial amount of medical bills. But, it wasn’t designed to pay for everything, and it doesn’t. Unfortunately, if you rely exclusively on Medicare to pay your healthcare bills, you could be facing significant out-of-pocket costs. And that’s why some seniors turn to Medicare Supplement, to help shoulder some of these costs. With several different benefits and plans to choose from, finding one that fits your needs isn’t complicated. But if cutting costs is your goal, the money-saving Med-Select option may be the right choice. Here’s how this option can help you save on Medicare Supplement premiums.
Med-Select Option
Medicare Supplement insurance is offered to anyone with Medicare. While each plan is different, some plans are available in both a “standard” option and a reduced premium version, or a Med-Select option. Both the standard and the Med-Select options offer identical benefits but have different restrictions. With Med-Select, you pay a reduced premium in exchange for agreeing to use one of the hospitals in the Medicare Select Network for all of your treatment. Med-Select plan benefits are the same as standard plan benefits, but premiums cost less. For example, if you choose Plan F, either Med-Select or Standard option, your Part B deductible will still be covered, as will any excess charges.
Protect Yourself From the Bills Medicare Won’t Pay
Medicare Select is available as an option only with certain plans, and companies are not required to offer Med-Select with every available Medicare Supplement standard plan. With the Med-Select option, you agree to use one of the Med-Select hospitals for all non-emergency care. If you do not, then you are responsible for paying the Part A deductible and any other non-covered charges. Only certain hospitals are network providers and it’s important to check with your doctor to see if he or she is included. To qualify for the Med-Select option, you must live within 30 miles of a hospital in the Medicare Select Network.
Resources:
https://www.bcbstx.com/medicare/med_select_option.html
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