1. There are only 10 different plans available all with lettered designations A- J
2. All plans that have the same lettered designation are IDENTICAL BY LAW
3. There can be a wide deviation in prices even for plans with the same lettered designation
4. All Medicare Supplements (combined with Medicare) give you complete freedom of choice for Doctors AND Hospitals. Be careful there is a lower priced product called a Medicare Select that will limit you to certain hospitals and the Doctors affiliated with those hospitals
5. When you have just turned 65 and joined Medicare, you have a 6 month period of open enrollment. This means that you can join any plan regardless of your health conditions

So which benefits are vital and which are unnecessary?
The most important benefit is called "Part A Deductible", this benefit fills in the Medicare's big deductible. When you check into a hospital for an overnight stay, Medicare pays the full cost for your room & board, except for an initial deductible of $1024. This is a per incident deductible and could come up as many as 5 times per year. The "Part A Deductible" coverage comes with all plans except Plan A. It will cover this deductible each time you go to the hospital.

Another one of the more important benefits is called the "Part B Co-insurance". When you go to the Doctor, Medicare pays 80% of the amount it approves. Leaving you to pay the 20% balance. This benefit covers that 20% without any total dollar limitations. This benefit comes standard with all 10 Medicare Supplements.

We feel that these 2 benefits are the crucial building blocks for your coverage. In many cases this will be all an individual needs. This package of benefits is available in Plan B and is the most economical way to purchase a Medicare Supplement.

Here are a few benefits that for some people will be very important.
"Foreign Travel" Medicare does not cover you outside the United States. This benefit will cover you after a $250 deductible. It pays 80% of the cost for Emergency services, up to a lifetime maximum of $50,000. If you travel outside of the country on a regular basis you should include this benefit in your package and look into Plan C.

"Part B Deductible" Medicare has a $135 calendar year deductible for all Doctor's bills. This will be reimbursed to you if you have purchased Plan C.

The following benefits are usually unnecessary.
"Skilled Nursing Co-Insurance" If you are hospitalized for 4 days and then moved to a Rehabilitation Center (NOT A NURSING HOME) Medicare will pay for the first 20 days in full. If Medicare allows you to stay past 20 days then between Medicare and this benefit, days 20- 100 would be paid in full. Here is the problem, it costs Medicare $200 per day ($1400 per week) to keep you in the facility. Or Medicare can send you home to receive your therapy, 3 times weekly, at a cost of $200 PER WEEK. Obviously if Medicare has the choice of taking care of you for $1400 per week or $200 per week, they'll choose the less expensive choice. This is why during the 20 years we have been working with these products we have not had 2 clients collect any money from this benefit. So if you are looking to save money on your Supplement you can take a plan without this benefit (Plan B). If you want coverage for Nursing Homes you must purchase Long Term Care Insurance.

"At Home Recovery" covers home health visits only if Medicare covers it. After Medicare's coverage runs out, it will then pay a maximum of $40 per day for 40 days per calendar year. If you want real coverage for home care, you must purchase a Long Term Care policy. When Medicare does cover home health care visits, they will only offer "Skilled Care". This is limited to physical, speech or occupational therapy and the checking of your vital signs. All services must be medically necessary and ordered by your doctor.

"Part B Excess" only comes into play when your doctor DOES NOT ACCEPT Medicare's assignment. If he does not, then he is limited by federal law to charge you a maximum of 15% above what Medicare has approved. Example: you go to the doctor. Medicare approves $100 for this service. If your doctor does not accept the assignment, the maximum he can charge you is $115. With this limit in place, this coverage is superfluous.

Medicare Part D

In 2005 Medicare introduced Part D to help cover the ever increasing costs of prescription drugs. This plan is separate from Medicare, is offered through insurance companies and has its own premium. The plan is not for everyone and can be very confusing. We have helped over 3000 people decide if this plan works in their individual situations. The best advice we can give you is to call us and in just a few minutes we can help you determine if you should enroll in Part D and with which company.

We have put together a chart detailing all 10 plans and explaining all benefits available to Medicare enrollees. If you would like a free copy of this chart or a free consultation to make sure that the plan you have is the right one for you, feel free to give us a call. We'll sit down and make sure that your plan suits your needs. When it comes to this kind of insurance, every one of our clients has their own needs and goals; we are here to help you meet those goals and cover those needs.