When you turn 65, you will need to make some choices about your healthcare coverage. These choices can be overwhelming at first, because there is not one type of Medicare plan.

To help provide some clarity, this Supplemental insurance broker in Michigan City, Indiana is going to explore some of the most popular Medicare options below.

Insurance terms you will encounter.

Before you meet with your local Supplemental insurance broker in Michigan City, Indiana, it’s important to understand some terms. These are words you will see a lot when comparing plans, and knowing them ahead of time will make everything easier to follow.

• A premium is the amount you pay to keep your coverage active. Think of it like your monthly insurance bill. You pay it whether you see the doctor or not.
• A deductible is what you pay out of your own pocket before your insurance is used. For example, if your deductible is $200, you will cover the first $200 in medical costs before your plan will pay anything.
• A copayment, or copay, is a fixed amount that you pay each time you use a service. It could be $20 for a doctor visit or $10 for a prescription.
• Coinsurance is a percentage of the cost. If your insurance covers 70% of a bill, you are responsible for paying the remaining 30%.
• Finally, there is the out-of-pocket maximum. This is the most you will ever have to pay in one year for covered care. Once you reach that number, your insurance will cover the remaining costs. It does not include your monthly premiums or any other non-covered expenses. But it does cover deductibles, copays, and coinsurance.

Once you are familiar with these terms, the different Medicare options will make a lot more sense. And when you discuss with your local Supplemental insurance broker in Michigan City, Indiana, you can feel more confident about the decisions you are making.

These are the main types of Medicare plans.

Medicare Advantage:

Instead of having Original Medicare and a separate drug plan, Medicare Advantage (Part C) plans combine all these benefits into one plan. That means your hospital coverage (Part A), medical coverage (Part B), and even your prescription coverage (Part D) wil be included in one plan. Many also come with extras that Original Medicare does not cover, like vision, dental, or hearing benefits.

The trade-off is that most Advantage plans use networks, which means you will usually need to see doctors and hospitals that are in the plan’s system. For some people, that is no problem. For others who want more freedom, it might feel limiting.

Medicare Part D:

This is Medicare’s prescription drug coverage. If you take medications, having a Part D plan can save you a lot of money. You will want to check each plan’s list of covered drugs, called a formulary, to make sure your prescriptions are included.

If you don’t sign up for Part D when you first become eligible and decide to join later, you could have to pay a late enrollment penalty that sticks with you. Therefore, it is usually better to select some type of coverage upfront, even if your prescriptions are minimal at present.

Medicare Supplement (Medigap):

Instead of replacing Original Medicare, Medigap plans work alongside it. You keep your Medicare Parts A and B, and the Medigap plan covers the costs that Medicare does not pay. That means costs like deductibles, coinsurance, and copayments.

The main advantage of a Medigap plan is predictability. You know more about what your costs will look like, and you usually have the freedom to see any doctor that accepts Medicare, anywhere in the country.

However, Medigap plans don’t include drug coverage. So, you would need a separate Part D plan for prescription medications.

Choosing the right Medigap plan comes down to comparing coverage levels and prices. Fortunately, Medicare Supplement plans are standardized. For example, a Plan G in Michigan City will cover the same things as a Plan G in any other state. That makes it easier to compare companies on a level playing field when evaluating different options.

Looking for a Supplemental Insurance Broker in Michigan City, Indiana?

If you are looking for a Supplemental insurance broker in Michigan City, Indiana who can help you understand your options, Senior Care Insurance Services is here for you. The licensed and trusted insurance agents at Senior Care Insurance Services (SCIS) can help you find the best coverage for your needs and financial situation. Contact us today to schedule an appointment with our agents.