Should I Buy a Medicare Supplement Plan When I Turn Age 65?
The short answer is yes. It is a good idea to have a secondary insurance in place in order to supplement what Medicare Parts A and B do not cover. Whether it is an Advantage plan or traditional supplement, seniors will almost always benefits from secondary coverage.
In our opinion, supplement plans are usually the more comprehensive insurance plans. Consumers might pay a little more in premium, but their out of pocket expenses will be much less with a Medigap policy. And there are few if any network restrictions.
What About Medicare Advantage Plans?
Medicare Advantage plans can be tricky. When you enroll in this coverage, you are basically signing up for private insurance over traditional Medicare. Advantage plans insure you for what Original Medicare usually covers and part of what it does not. You cannot own both a supplement and an Advantage plan at the same time.
If you are healthy, like any other insurance, you need not worry about your plan. In fact, you will probably save money by enrolling in an Advantage Plan as the premiums are usually lower.
However, if you get sick and have any major claims, Advantage plans will typically have much larger out of pocket expenses for the insured. In the long run, you may not have saved any money at all. In fact, you could be spending a great deal more.
The other issue with Advantage plans is that they, like any private insurer can go out of business. In Ohio, we have seen a couple of providers pull out, thus leaving their policyholders without insurance. If this happens you can always re-enroll in Medicare, but you will need to find new secondary coverage and your options might be somewhat limited.
Can My Health Be A Factor When Purchasing Coverage?
There are no restrictions at age 65 for preexisting conditions when purchasing a supplemental plan. However, there can be after your six month open enrollment window has closed depending on your situation.
Like many health insurance product, you need to be healthy in order to purchase and be accepted into a plan if you are mot in open enrollment. If you have enrolled in an Advantage plan and the insurance company leaves your area – and your health has deteriorated – you will have fewer opportunities to purchase a supplemental policy.
Of course, there is a place for Advantage plans. Seniors who have missed their opportunity to enroll in a Medicare supplement and cannot otherwise qualify for one or who are operating on a tight budget might consider Advantage coverage. But if you are in good health and have the means, a Medicare Supplement might be your first choice.
Request Agent Assistance
Hyers and Associates is an independent agency specializing in Medicare supplement insurance coverage across the U.S.
Contact Us for a free quote or to request assistance today.
