Site of Joe Clark, Author of
"Common Sense Retirement"
For some answers on Healthcare reform go to that page.
Understand Health Insurance Quotes
Understand Medicare Insurance Choices
Understand Retirement Choices
Be the only one using your identity
Are you sharing your Social Security # yet?
Learn more regarding Medicaid
Low Rates vs Cheap Insurance
Avoid being taken advantage of - get the book
Will you be turning 65 soon?
Parents turning 65 soon?
Medicare Insurance Choices
Three ways to go (see chart below)
1. CHOICE ONE
Original Medicare 80/20 + a prescription drug plan.
(even if you do not need any prescriptions the penalties for not having a Rx plan outweigh any savings of premium in the short term)
(no matter which Rx plan you take, you have the option to change every Nov 15 - Dec 31, effective 01/01)
2. CHOICE TWO (my favorite)
Medicare supplement insurance (Medigap insurance) + Prescription drug plan Part D
a. Premiums vary company to company but
b. Medigap coverage is exactly the same (by law)
c. With a Plan F you will never have a medical bill (Plan J no longer available after May 31, 2010)
d. When you first age in you are NOT subject to underwriting. If you have a serious health condition and can afford the premium this is the very best way to go.
e. Premium for this plan is currently as low as $130/month/male plus $38 a month for a Rx plan. Rates are lower in some rural areas and for females.
1. Some insurance companies definitely want more money than this for their plan with exactly the same Medigap coverage.
2. Prescription coverage is not all the same coverage.
a. Walgreens will (no charge) take your list of prescription medicines and print out a list of every plan that covers your medicine.
3. CHOICE THREE
Medicare Advantage Plans
a. More like traditional health insurance
b. I suggest zero premium plans
c. Get the ones that include Rx; some do not
d. If you take a Medicare Advantage HMO plan that does not include Rx you may NOT buy a stand alone Rx plan.
e. If you take an MA plan because you are healthy, later when your health gets worse you will not be able to switch to a Medicare Supplement Plan because you will be subject to underwriting. (If you take a MA plan you have twelve months to make a correction and take a better plan without underwriting) (If you begin with a Medicare Supplement Plan you have six months to make a correction to a different Med Supp Plan or company)
You must have Plan B ($110.50) to participate. (higher income; higher premium)
If you decline Plan B you will pay a penalty for the rest of your life once you elect a Plan B
If you decline Plan D no medicines or prescriptions are covered under Medicare unless you are hospitalized and
you will pay a penalty when you do subscribe to a prescription drug plan.
With the right information you can make the right choices
Educate yourself
Searching the Internet for insurance is similar to giving yourself a haircut, going to court without a lawyer, or attending an IRS audit without a CPA
Never call an insurance company and sign up
That agent you are talking to on the phone that you found on the internet is 7 states away and you will not be able to hold them accountable.
Agent/employees representing only one insurance company and answering that phone Sell what their manager tells them to sell.
A local Independent Broker cost you nothing and should save you a lot. (Medicare Specialist)
The local broker will appreciate that you spent a lot of your time getting a marginal education in insurance.
The local broker has every reason to treat you right.
Medicare should have mailed you a book entitled
"Medicare & You 2010"
HANG ON TO THIS BOOK.
You may view this book online at www.medicare.gov, but it will not have the pages comparing the plans. This site does have comprehensive plan comparison information if you ask the right question.
Also get information from www.ssa.gov (Social Security Administration) and www.cms.gov (The Center for Medicare/Medicaid Services) the agency that regulates Medicare
If you truly wish to understand your options, get my book. 20% of people I educate regarding Medicare options do not need to change the plan they have at this time.
100% of people I educate are prepared for changes that WILL be needed in the future.
Do you think your health will get better or worse over the next ten years?
An independent broker who specializes in this narrow field of Medicare health insurance cost you nothing but may save you a lot.
Having a prescription drug plan is not truly optional. If you fail to enroll in Part D when you are initially eligible, you may have to pay a penalty for the rest of your life. In the meantime catastrophic illness may strike leaving you holding a heavy bag.
An agent who offers you Medicare Advantage plans is required to have you sign a "Scope of appointment" form specifying the plans she/he will talk about. Have them also talk about Medicare Supplement Plans and Prescription Plans and how they work together or separately.
If your agent works directly for ONE insurance company you really need a different agent.
I usually do not recommend MA plans that have a premium.
Do the math on how many times a month you need to go to the doctor to justify a $45 or $95 premium. Compare the coverage.
YOU MAY PAY TOO MUCH!
Below is a chart that may help you better understand your options
My goal is to take the confusion out of the process of choosing your health plan
Get specific answers to your questions
Many people are best served by a Medicare Supplement Plan (Medigap) plus an Rx plan
303-886-2229 |
