2) Medicare Part D
For 2017, Medicare prescription drug plans will have coverage limit of $3,700. When drug costs meet that limit, consumers enter the “donut hole” and are obligated to pay 40% of the cost for brand-name drugs and 51% of the cost for generic drugs. Beneficiaries stay in the "donut hole" until they have paid $4,950 at which point they qualify for catastrophic coverage under the new law, the "donut hole" discounts will increase annually until the "donut hole" is eliminated in 2020.
3) Medicare Advantage Plans
Medicare Advantage Plans were put into place in an attempt to privatize Medicare and have Medicare benefits provided by private insurance companies, rather than the government.
Many Medicare Advantage plans also provide additional benefits (dental, eye-wear, gym membership, etc.) not covered by Medicare. All claims go to the insurance company; no claims go to Medicare.
4) Medicare Supplement/Medigap Plans
Medicare Supplement plans are secondary insurance – that means that all claims go to Medicare first. After Medicare pays its claims, they send the remainder of claims to the Medicare Supplement plan. Medicare Supplement plans provide greater benefits, however most plans are higher cost than Medicare Advantage plans. There are a number of coverage levels under Medicare Supplement plans. (i.e., Plan F offers the greatest benefit at 100%). Medicare Supplement plans do not provide Part-D Prescription Drug coverage. A Stand-Alone Part-D plan will need to be adopted to cover Prescription drugs.
5) “How Do I Select Which Plan?” Questions:
1. How often do you need to see a health-care provider?
2. How much can you afford in premiums?
3. How much do you travel?
4. What prescription drugs do you take?
5. Does your doctor accept Medicare?
6. Is your doctor(s) in the network for Medicare advantage plans?
Thinking over your personal answers to these questions, will make your Medicare plan selection process much simpler.
Please call Mike King for a NO COST personal advising on this important decision!
Mike King: (585) 224-8138, (800) 458-7805