Understanding insurance is important. Insurance is purchased before an event happens against the risk that it might happen. Some get confused and want to get insurance coverage after the event has happened. That does not work. Let’s take a few minutes to talk about how that applies in one instance to medicare advantage and supplement programs.
Maybe you have an HMO or PPO Advantage program for the last five years and are beginning to experience more and more health issues and visits to the doctors. You are concerned that a major problem could bankrupt you and so you look into a supplement. You have heard that a supplement will cover your deductibles and copays, which are increasing.
Here is what you find. Advantage and supplement or Medigap are mutually exclusive. You don’t have both, you have one or the other. Some agent tells you that you can have both and you are confused. It can be confusing. But you cannot have both.
You also find that a supplement has premiums adjusted for age. A $120 a month supplement at 69 is now $140 a month or more.
You also find that a supplement after your first year on an advantage program requires medical underwriting. Any health issues have to be communicated and affect your ability to get that supplement versus your advantage program.
Ouch, what can you do? You are concerned that the maximum out of pocket for your program is so high you can’t pay it many years in a row. Your MOOP could be $6000 or much more.
This is one of the reasons people buy a supplement in the beginning instead of an Advantage program. The Advantage program is good if you have little medical experience, which is common at age 65. But as you age, the medical gets more and more expensive with deductibles and copays. The supplement gives you a budget amount each month and with the right plan covers those deductibles and copays. You need to review the supplement you choose. They are not all equal, though they are all the same coverage carrier to carrier when on the same plan such as G or F or N.
What can you do? There is a good alternative and I would be happy to talk with you about it. Good carriers have INDEMNITY packages designed to insure against expensive hospitalizations and short term care and emergency and even cancer. Of course they are purchased before you are diagnosed, but some have short waiting periods such as you have not been hospitalized in the last six months for an issue, even though the issue is present. There is a lot to consider, but an indemnity plan in your mid retirement years is a good option. You don’t want to wait long, because of course the rates increase as you age and you may find yourself in the middle of an issue and you needed the insurance before you arrived at that point.
Okay, these are just simple notes. INDEMNITY packages are not medicare. They are an adjunct health product to give you increased financial protection against risks. They can be good for you if you have had an Advantage product or original medicare for a while and are getting concerned about future healthcare costs.
There are alternative ways to protect yourself and your financial stability and make sure you have what you need to get the healthcare you need as you age. We can help with that.
Call 405.494.0637 or phil@soluminsurance.com. We can help with that.
