Even though Medicare Supplement plans have been around for a long time, the new changes made in 2020 should have some unexpected consequences for this segment of the health care industry. These changes will not just affect individuals who purchase Medicare Supplement plans.
These changes were mandated by Congress when it passed the American Recovery and Reinvestment Act (ARRA). This legislation requires all private insurance companies to provide an option for a Standard Part D plan or a Medicare Part B plan. Both of these plans are needed for Medicare Part B eligibility.
In addition, the most recent changes to Medicare Supplement plans have no impact on current consumers, but those who are considering purchasing these plans for the first time. The new requirements are only in effect for new plans and may have some impact on purchasing patterns.
There are many advantages to understanding the new rules before you decide to take advantage of them. In most cases, the rules have been made in an effort to force insurers to offer better services at better prices to stay in business. This may mean that you can expect lower prices in the short run, but in the long run, you could be spending a lot more money than you would have in the past.
One problem with Standard and Medicare Supplement plans is that their prices are typically too high for most people to afford. To combat this, Medicare does not only offer a choice of plans, but also offers a chance to make savings on your premium by reducing the number of doctor visits or medical procedures you use. This is referred to as “risk adjustment.”
For most Standard Plans, you are allowed to set your deductible as low as the lowest amount for your group, as long as you have met all of your obligations for the year. With Medicare Supplement plans, you cannot do this. You must maintain a minimum Standard Plan level of coverage each month.
This may seem like a big disadvantage for people who buy Medicare Supplement plans by visiting https://www.comparemedicaresupplementplans.org/, but it will save you a lot of money in the long run. By taking advantage of this option, you can not only save a lot of money by choosing a lower deductible, but you can continue to get high quality care at a much lower price.
Also, Medicare Supplement plans don’t cover all the preventative care that is typically covered in Standard Plans. So if you are a smoker, you may have to pay more for some forms of preventive care.
To summarize, Standard and Medicare Supplement plans have different coverage levels and policies. If you want more comprehensive coverage, it is recommended that you purchase both plans. Also, by using the new risk adjustment feature, you can still receive the same service at a cheaper price.
As of the beginning of the year, you are now able to add a Standard plan to your Medicare Supplement plan if you didn’t already have one. While this is great news for many seniors, you need to understand that you may have to pay more for your prescriptions if you do so. It is also highly recommended that you shop around for a more competitive price.
After hearing all the pros and cons, you may be wondering if there are any good coverage options for seniors without a lot of spending money on prescription drugs. The answer is yes – Medicare Part D is available to you.
Part D plans work exactly like Standard Plans, and they are usually the same price, so you won’t find much difference in the premiums for either. Some seniors worry that this plan might cause them to fall behind in their prescription medications.