In Texas, if you’re 65 or older, you’re eligible for Medicare and that helps considerably. However, Medicare doesn’t pay for all of your medical expenses and more than likely you’re going to have supplement your coverage with additional insurance. You can purchase a Medicare Advantage plan which provides all of your Medicare Parts A and B and sometimes prescription drug coverage or you can supplement Original Medicare with Medicare Supplement Insurance.
You may have heard a few things about both options and now you’re wondering if it’s cheaper to have an Advantage plan instead of a Medicare Supplement? Typically, the answer is no, but choosing between the two requires looking at a variety of different factors. Nevertheless, if you’re like most Texans, cost is a main concern. Learn more about Medicare Supplement insurance and Medicare Advantage and make the right choice.
What you’re Really Paying For
Medicare
With Medicare, Part A is free for most people, but most pay a premium for Part B. In addition, there are other out-of pocket expenses including deductibles, copayments and coinsurance. In some cases, there are even excess charges if your provider charges more than the approved Medicare amount for a particular service. Original Medicare does not cover prescription drugs and if you want that coverage, you must purchase it separately through a Medicare Prescription Drug Plan.
Medicare Advantage
If you choose to purchase a Medicare Advantage plan, you are opting to get your Medicare benefits through your Advantage plan rather than through Medicare directly. All Advantage plans are required to provide at least the same coverage provided by Part A and B and most offer prescription drug coverage. However, it’s not required that they provide anything more than the basic coverage and benefits vary considerably. More than likely you’re going to have a premium and you are still responsible for any deductibles, copayments and coinsurance.
Medicare Supplement Insurance
If you choose to purchase a Medicare supplement plan, you will have a monthly premium in addition to your Part B Premium, but you can avoid most or all out-of-pocket expenses. In Texas, there are ten Medigap plans to choose from, each with different combinations of benefits. Plan F completely eliminates all of your deductibles, copayments and coinsurance. So while you may be paying more monthly, you won’t owe a cent whenever you receive treatment.
There are other factors to consider. It’s important to compare benefits when comparing premium rates between the two options. For instance, the premium for Medicare Advantage may be lower than for a Medigap plan, but when prescription drug coverage is added, the premium rate may increase considerably. In addition, with Medicare Advantage, it’s likely that your premium will rise over time. Medigap plans have locked premiums, meaning that they will not increase. Finally, because Medigap plans are guaranteed renewable, you don’t have to worry that your plan will be canceled, even if your health deteriorates. The same is not true with a Medicare Advantage plan. In fact, if your plan discontinues, you will be faced with finding a new plan in your coverage area, or going back to Original Medicare.
The bottom Line? Many Texans just like you are choosing Medicare Supplement insurance simply because they aren’t willing to pay any out-of-pocket expenses for health care. Depending on how frequently you need to see a doctor or how often you might owe a copay, Texas Medicare supplement insurance is a good choice. Also, most seniors are not comfortable choosing doctors and providers from a network that may or may not have or continue to have their trusted care giver. Consider your options and always choose a reputable, credible provider like Blue Cross Blue Shield of Texas for your insurance. Get Medicare Supplement insurance and get peace of mind that comes from knowing you’re covered completely.
For a more detailed comparison of Medicare Advantage plans VS. Medicare Supplement in Texas visit our website.