When enrolling for Medicare, many people choose to purchase a Michigan Medigap insurance policy to cover additional expenses that exceed Medicare’s basic benefits.
There’re ten different policies available. While price is important, there are other factors to consider when purchasing Michigan Medigap coverage.
Medicare Basics 101
Medicare is traditional fee-for service insurance provided to all US residents once they turn 65 years old. Medicare consists of two parts; Part A and Part B.
Part A is considered hospital coverage and inpatient care. Part B covers other routine medical care such as doctor’s office visits and physical and occupational therapy. Part B is subject to a monthly premium paid by the participant.
Many Medicare beneficiaries opt to buy a Medigap, or a Medicare Supplement Plans Michigan, to cover co-payments and other costs that exceed their Medicare benefits. Medicare Part C is not Medigap, these plans are called Medicare Advantage plans offered by insurers and include traditional Fee-for-Service, PPOs (Preferred Provider Organizations) and HMOs (Health Maintenance Organizations). These plans may also include a Prescription Drug Plan, referred to as Medicare Part D coverage.
Michigan Medigap Plans
All Michigan Medigap insurance plans are identified by letters and contain minimum benefits set by the state. For example, Plan G has the exact same benefits with every insurance company that offers a Medigap Plan G policy, with price being the only difference. Unlike employer sponsored coverage, which most people are familiar, Michigan Medigap policies cover only one individual. Spouses must obtain their own coverage under a separate policy. You and your spouse are not required to purchase the same type of policy.
Many plans offer in-network and out-of-network benefits, with benefits being higher when you use services in-network. If you’re purchasing a plan with any carrier, be sure to verify your physician and preferred hospital are part of the network.
If you’re looking to avoid pre-existing conditions, you should enroll in an insurer’s plan during your Open Enrollment Period. You can enroll in a Michigan Medigap plans at any time during the year, but if you enroll outside your Open Enrollment Period, you won’t be given Guaranteed Issue. Michigan Medigap insurance companies can’t deny you coverage for any reason, as long as you meet the requirements.
Michigan Medigap Insurance Plans for Under 65
Michigan Medigap Insurance Plans for Under 65, you have two plans that Michigan offers, A & C. It’s important to know the rates won’t be the same as if you were 65+. Some states offer all plan letters if you’re under 65, as well as keep the rates the same, but in Michigan that’s not the case. Call us today for more information on the rates.
In 2014, the total amount of spending on Medicare reached over 20 million dollars in the state of Michigan, between 1991-2014 it reached an annual growth percent of about 7%. The amount an enrollee would spend on Medicare averaged just over $11,000 per year. The distribution by gender was 44% male and 56% female in 2015.
Basic Supplement Coverage Includes:
- Medicare-approved inpatient expenses up to an additional 365 days after the maximum benefit under Medicare expenses has been paid
- You’re covered for your approved expenses under Part B depending on the coverage outlined in your Medigap policy. Some Medigap policies will cover your Part B deductible so you have minimal out-of-pocket expense
- If you need blood, the first 3 pints are covered each year
- Outpatient prescriptions and inpatient respite care coinsurance under Medicare Hospice payments.
According to Lauren Marie, a travel expert, some plans offer more travel benefits. The more benefits the policy has, the higher the price.
These Benefits Can Include:
- Emergency health care when traveling outside the US
- Coverage for skilled nursing care after Medicare benefits cease.
- Your Part A and/or Part B deductibles at a full or partial level
- Prescription Drug (Part D) coverage can be incorporated. Be sure you thoroughly review the benefits prior to adding a Part D provision to your Medigap policy.
Michigan Medigap Plan F
Michigan Medigap Plan F offers the most extensive healthcare coverage compared to the other plans, it includes every benefit option available. Michigan Medigap Plan A includes only the core policy benefits and Plan C checks off all the boxes on the outline of benefits and coverage chart, the only benefit it doesn’t cover is Part B excess doctor charges.