Medigap: Should I consider buying it?

Posted: Sun Mar 22, 2009 03:29 am Post Subject:

All i know is that Medigap is to supplement your Medicare insurance. It covers some areas that are not protected if you only own Medicare. You should at least own Medicare if you can't afford both at the same time. however, in the long run, it is more advisable to purchase Medigap as well, so you'll have a more all-rounded coverage.

Posted: Mon Mar 30, 2009 05:13 pm Post Subject:

If we want to get really technical about it, there are NO Medi-Gap programs with no premium. You would be referring to MA's that have low or no premiums. MA's are not Medi-Gap policies because they pay instead of Medicare, not in conjunction with.

Posted: Wed Apr 01, 2009 05:40 am Post Subject:

Medigap is a nice option to best suit your need. You have options to cover for ambulance charges, skilled nursing, more hospital days even lifetime hospital charges coverage beyond medicare, foreign travel emmergency, at home recovery, preventive care coverage, special diseases such as cancer treatment, and many more.

Medigap Part A is always include core benefits. Other B through L medigap, you may have choice to choose in between. Mostly, Part is covered in other types. Your health condition and the rates affordable are the deciding factors. Also there are more regulations on these policies by the states, e.g. guaranteed issue wherein, you need not pass medical examination for proving your insurability. Although it is illegal to sell more than one medigap for insurance company, yet, some overlaps are allowed e.g. a cancer treatment.

Posted: Thu Apr 02, 2009 01:36 am Post Subject:

In the above message, when reading you should substitute the words like "Part A" to be Plan A. Medicare in itself has four "Parts". Parts A, B, C and D. Plans however go from A thru L. If you want to with a plan that will cover you well, go with plan F. It's very doubtful you will ever receive a doctor or hospital bill if you do. You pay the plan premium, you go to the doctor/hospital, the doctor/hospital bills medicare, medicare approves a certain amount, medicare transmits that info to the insurance company and they pay their 20% and medicare pays their 80%, you are left with 0%. Just that easy.
Medicare advantage plans (Part C), now that's a whole different ballgame...I say stay away from those...well, unless you like surprises!

Posted: Thu Apr 02, 2009 07:01 am Post Subject:

Hi Todd, don't you think that people should buy according to their needs? Since one product can’t satisfy the needs of all we see so many types of policies available in today’s market. plan F might cater to the needs of a certain segment of population but surely it wouldn’t cover all the requirements. Any specific reason to propose plan F?

Posted: Tue Apr 07, 2009 01:16 am Post Subject:

It bugs me that many agents will jump right to 'Oh you need plan F'. Yes, it has some of the highest coverages you can get on a Medigap plan, but not everyone NEEDS that much. Lord forbid they're low income and unable to afford the monthly dues.

It comes down to weighing cost vs. assumed risk - What are the odds that you'll need this? Are you willing to play these odds?

Then again, I tend to sell Part C plans more than I do Medigap, so I guess I'm slightly biased toward this subject :-p

Posted: Tue Apr 07, 2009 03:13 am Post Subject:

The main reason for the plan F is that the senior will not get bills. I have found that over the years, that's what seniors do, stay away from bills. They pay them all at the begging of the month because they need to see what they have left over. They pay the med supp...they are done! With a MA plan it's like Forest Gump and the box of chocolates...You just never know whatcha gonna get!
Now, when it becomes financially more sense to do the MA, you do it, but only then! Let me give you an true example. I have a client who is now 81. He is insulin dependent diabetic. No supps to be had because of it. I put him with a particular company and he has been there for years, but doesn't like the premium that it has steadily creeped up to. Right at $3000/year. So I gave him an MA plan at $0 premium with a $3000 out of pocket expense. He right now goes to the Dr. 2 times a year. Odds are in his favor he'll be better off now with that MA plan, then if the MA's gove south like we expect, I'll be able to put him on a guaranteed issue med supp again. Another example would be someone that's just shy of being on medicaid and can't afford a med supp or it would take a roof off her head, clothes off of her back, or food off her table, then yes give her the MA plan. (Or of course a "him")
I have sold plenty of both medicare supplements and MA's. I have sold thousands of supps, but only about 100 MA's, so I guess I'm slightly biased to doing the right thing by the client.

Posted: Tue Apr 07, 2009 05:56 am Post Subject:

I can see what you mean by doing right by the client, and I'm all for that in so many ways. But I see, and I'm not saying that your case is such, many agents simply pushing MedSup because the commissions pay more than MAs. It bothers me to no end when they refuse to look at the true needs of the client, and see what's going to best fit their needs for what they can afford - both on the front and back ends.

They both have their place, but I honestly think we'll be seeing more MedSup in coming years. More so with the MA subsidy changes that will be finalized tonight - can't wait to get the paper tomorrow and see how things are going to really be for 2010!

Anyway, I'm going to far off topic. To summarize, I get what you're saying. You're honest in your intent. However, I see to many agents out there that aren't, and only push MedSup for the higher payout.

Posted: Tue Apr 07, 2009 06:30 am Post Subject:

With Medigap you can have up to 12 different plans each with a different set of benefits. Although the benefits received from Medigap are same for all insurance companies, the costs can vary. So it is advisable that you compare plans. To get a Medigap policy, generally you must have Medicare Part A and Part B. In addition to the Medicare premium that you pay, you will also have to pay a premium for your Medicaid policy.