Deciding between Medigap vs Advantage Plans is often a tough task. Finding the ultimate option depends on a number of factors. It also depends on how much effort you put in to find the best health supplement plan.
Medigap vs Advantage Plans:
Both the plans are offered by private insurance firms, and both aid in the cover of gaps left by Medicare. Medigap is a group of supplemental insurance plans that operates in conjunction with your normal Medicare benefits. Advantage Plans, on the other hand, are separate from Medicare. The fact is, if you buy an Advantage Plan, you’ll be de-enrolled from Medicare. The following are some more important differences:
- The benefits of Medicare are standardized through the federal government, which indicates that plans sold by different insurance firms will all offer identical benefits.
- Advantage Plans provide at least the same coverage as that of Part A and B. However, they vary broadly beyond this set of benefits.
- The services offered by Medigap Plans involve a large number of doctors and caregivers. The services of Advantage Plans are normally in a limited network.
- An individual has to pay an additional monthly premium in Medigap Plans.
- The premiums for Advantage Plans are less compared to Medigap Plans. In some cases there is an absence of monthly premiums for Advantage Plans.
President of New York based national consumers’ advocacy group, Medicare Rights Center, said seniors should do some searching. Even though the basic features of a plans remains almost similar, there is, however, difference in premiums, and also in the services provided by each company. Just because a person is paying higher premium does not mean that he or she will receive better service.
Bonnie Burns, an experienced Medicare policy specialist from Sacramento, cautioned, when a person makes a call to an insurance company, and he or she is not treated well, it is better not to do business with such a company, even though it may charge a few dollars less.
As per a recent survey and analysis by Kaiser Family Foundation, nearly eight million people are enrolled in Medigap plans. A United Health Care spokes person said 2.3 million people across the country have picked the AARP brand, which is sold under a license from advocacy group for senior Americans.
In recent years, several companies have cut down on employer sponsored coverage for retired employees, but around 15 millions seniors are still enrolled in it. Around nine million more are enrolled in government subsidized advantage plans provided by private insurers.
Ms. Darlene picked up plan C, one of the most famous Medigap plans New Jersey has in offer. It covers for the deductible charges for doctors and hospitals and 20% coinsurance payments which make Medicare costly for people when they require care.
A company spokes person said the rates of Plan C were raised a medical costs increased faster than other available options. Unlike most states, companies in New Jersey should charge the same rate from men and women in the same community, regardless of health status or age. Some other states that have the same law include, Connecticut, Arkansas, Minnesota, Massachusetts, Oregon, New Jersey, Washington and Vermont.
But in Florida, for instance, there are different rules and the gap is even wider in premium prices. A non-smoker male of 65 years of age in Boca Raton can enroll in Plan C for $190.09 a month from Combined Insurance Company, whereas the same plan will cost $320 from Lincoln Heritage Life Insurance. This same plan will, however, cost $430 to his 80 year old brother. Insurance companies in Florida can even deny such applicants due to health reasons.
There is no reason available to justify the difference in cost. When you are planning to purchase a new Medigap plans New Jersey feel free to contact us, we have a pool of experienced and knowledgeable insurance advisors who can provide you with all the relevant information which are required to make a sound planning.