The Health Insurance options for those on Medicare are very confusing. For those signing up for Medicare for the first time, the time to do this is from three months before the month you turn age 65 till the end of the third month after the month you turn age 65. During this period of time one wishing to sign up for a medicare supplement plan or an advantage plan may do so without regard to medical conditions. If you try to enroll after this open enrollment window, you may be declined acceptance into a medicare supplement plan and may have to wait till the next annual open enrollment period for an Advantage plan or prescription plan, which is from November 15 to Dec. 31 of each year.
Keep in mind the you are not required to enroll in any Advantage, Medicare Supplement or Prescription plan. However, if you elect not to enroll in a prescription plan when eligible and you do not have another credible prescription plan, you will have to pay a 1% penalty for each month that you wait to enroll in a prescription plan in the future. The 1% penalty is figured on the cost of a base plan. Also be aware that the penalty is payable for the rest of your life.
The following is very important for those concerned about their access to affordable Health Insurance and the most appropriate health insurance. If you elect to get an Advantage Plan instead of a supplement plan, you may not be able to change your mind and go back to a supplement plan if you develop a medical condition. In this case, the only thing that will let you go to a supplement plan, is if your Advantage plan is canceled or eliminated for some reason (other than something that was your fault) or if you move out of the area for your current Advantage plan. This is very important to keep in mind as an Advantage plan may become a lot more expensive and limit some of you health insurance options. It is my recommendation to go with a supplement plan instead of an Advantage plan if at all possible. Remember that supplement plans do not include prescription coverage.
For those that just don’t have the funds for a supplement plan, there are plans available in most areas now that offer zero cost HMO plans. I am not a big fan of HMO plans, but if you just don’t have the funds it’s better than nothing. Just be aware of the limits of your HMO Health Insurance plan and when you are allowed to go outside your network of doctors and hospitals.
For those of you over age 65 in Michigan and looking to make a change in your Health Insurance plan this year may be a good time to go back to a supplement plan, as many of the private fee for service plans in Michigan have been eliminated this year. Most insurance companies have moved away from an Advantage plan with no network of doctors or hospitals to HMO and PPO plans. If your plan has been eliminated for any reason you are able to go back to a supplement health insurance plan.
The two major reasons to go with a supplement plans instead of an Advantage plan is the freedom to choose your doctor and hospital, also many of the supplement plans pick-up all the costs that Medicare does not pay. When you choose a supplement plan check out which ones pay your Hospital deductible and which ones pay your deductible for things other than the Hospital. Remember you will have to enroll separately in a prescription plan too. If you don’t take many medications now you can go with a basic plan for now. Each year you can change your prescription plan.
