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Medicare Advantage or Medicare Supplement: How to Choose a Medicare Health Plan?

Medicare Benefits Versus Medicare Supplements

Do you know the difference between these two types of senior health insurance in the United States? They are different and it is important that you understand to find the best coverage for you!

What is a MedSup?

Because these medications are provided by private health insurance companies, they receive a monthly premium. This price varies by coverage level, zip code and age in the same way as other health insurance. Most plans are also subject to annual price increases. So a 65-year-old can buy a policy at a price, but probably expects to pay more at 75. What is the disparity between a Medicare Advantage Policy and a Medicare Supplement Policy

A lot of persons get perplexed about between Medicare Advantage policy and Medicare supplement. A lot of individuals think they are one and the same thing, but they are not. A supplemental policy will pay AFTER Medicare. Depending on what policy you go for, the plan will pay the Part B deductible and the Part A deductible. You can then pay the 20% that Medicare does not pay, and possibly up to the additional 15% (Part B overcharges) if the doctor does not accept the “Assignment” (the rate Medicare allows). You can also cover other things like “Travel Abroad”.

The Future of Medicare Supplement Sales

I believe health reform will have a very positive impact on Medicare supplement sales in the coming years. Beginning in 2011, federal payments to Medicare Advantage plans will be substantially reduced and cuts will continue for years to come. This step will drive more insurers out of the Medicare Advantage market. Older people will lose their coverage and return to Original Medicare and buy a traditional Medicare supplement.

Obviously, Baby Boomer retirements will have a profound effect on Medicare supplement sales for decades. By 2030, the population over 65 will double to approximately 71.5 million and by 2050 will grow to 86.7 million, according to the US Census Bureau. This represents many potential sales of Medicare supplements!

Preferred brand drugs are usually drugs for which the prescription drug plan has negotiated a discount with the manufacturer. The copies of the preferred generic drugs, will not change. For non-preferred generics, co-payments are anticipated to decrease by 43%. Medicare beneficiaries are also expected to pay a larger portion of the cost of specialty drugs, which may exceed $1,000 + for each prescription. The specialized medications include a lot of the recent medications for chronic ailments such as rheumatoid arthritis and multiple sclerosis. New anticancer medicines that come in the form of pills are also considered specialized medicines.