In this article
How to shop for a Medicare plan, for your parents.
Original Medicare isn’t enough; we know this. We know that there are options out there to cover the gaps in Medicare so that we aren’t exposed to so much financial liability.
For many seniors, selecting their initial Medicare plan was a daunting task. The sheer volume of plans available today, coupled with the overload of mailed brochures and media advertisements, many find it frustrating and difficult to compare plans and determine what is right for them.
This has put a pretty bad taste in a lot of people mouth’s to where they do not want to switch now because of how frustrating the initial plan selection was. These people often believe that they did their homework the first time and they do not want to revisit the decision.
Plenty of times I have sat and talked with people who asked me to stop by and go over options with them. They weren’t happy with their coverage and wanted to change. The conversations were cut short however by their well-meaning children who were cautious of fast-talking salesman looking for a quick sale.
I would like the rest of this article to be for those people; the often well-meaning but ill-informed who make the decisions for their parents but do not fully understand what it is they are signing their parents up for.
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Why people choose the plan they do
There is no shortage of options when it comes to Medicare beneficiary insurance. KFF published a report showing that the majority of seniors cited a number of factors that were important to them in choosing a plan when first enrolling in Medicare.
Among the reasons cited, premiums and out-of-pocket cost, being able to see their desired providers, and familiarity with the name of the company offering the plan all ranked positive for enrollees.
Some said that they enrolled in a particular plan so that they could have the same coverage as their spouse; and this can provide a benefit for some people as certain companies will offer reduction in monthly cost for families.
Overall, seniors found it frustrating and difficult to organize the information they received due to amount of information being thrown at them. Most seniors did not use the Medicare Compare tool available on the medicare.gov website, and those that did use the tool said it was confusing, poorly constructed, and lacked information.
What should you be considering when choosing a plan?
When people enroll in a plan, they do so with the best of intentions. They often feel that they weighed all the options and considered all the possibilities and found the plan that is best; and sometimes they did do this, but often times not.
This article discusses what questions you should be asking of yourself when looking into health insurance. The concepts very much apply to Medicare coverage.
The four main factors when considering a plan should be;
- Coverage- does the plan cover your medical needs? This should include doctor and prescription drugs.
- Network- Are your current doctors in the plan’s network. If not, are you ok finding a new doctor or paying more?
- Deductible- How much will you need to pay before your plan kicks in?
- Premium- How much can you afford to pay every month? Remember, more expensive isn’t always better!
Learn how to read an Evidence of Coverage page (this is what Medicare calls the Summary of Benefits). These are sent in the mail every fall by every insurance company and list everything that your plans covers, how much you pay, and more.
What other features are important to you?
Dental and vision coverage, grocery allowances, and even funds to help supplement the cost of over the counter medicine has become a common practice with many companies.
But in an age where convenience has become king, many people want more from their plan. Doctors that come to you and ready-to-eat meal delivery are examples of features that some insurance companies are offering to gain an advantage over others to gain more enrollees.
Determine which of these you want your plan to offer so that you can make a better choice.
Shop for insurance, not perks
As nice as meal delivery and a gym membership are, it is important to remember that Medicare is health insurance. Your main goal should be to ensure that your health needs are covered.
The reason your parents need this insurance is so that if they have a car accident or get cancer or are hospitalized, they aren’t loosing their house trying to pay the bills.
Make sure they are covered first and foremost.
Get neutral advice
Always start with someone who isn’t trying to sell you something; the agent should never be your first stop.
There is a great deal of information available at your State Health Insurance Assistance Program (SHIP) here.
Familiarize yourself with the ‘Medicare & You’ handbook. It isn’t a fun read, but it is helpful.
Medicare.gov is a seemingly bottomless well of information, though navigating the site can be difficult.
Pay attention to the calendar
Signing up for Medicare and changing some of the Medicare plans is time sensitive. Make sure to avoid penalties and learn the enrollment periods.
Learn how social security comes into the picture as well.
Be careful of scammers
Medicare beneficiaries are popular targets for scammers, so help your parents protect themselves by making sure they understand the basics.
- Medicare will never call to sell you something. If someone claims to be from Medicare or CMS and is trying to sell you something, hang up and report the fraud by calling 1-800-633-4227.
- Medicare will never come out and visit your home.
- Medicare cannot enroll you in a plan over the phone unless you initiate contact.
- Medicare will never call and ask you for your Medicare number unless you have given them express permission ahead of time.
- Guard your Medicare number like it is your bank account number or credit card.
- Do not accept offers of money or gifts for free medical care.
- Make sure to review the Medicare Summary Notice (MSN) that you are sent every three months and ensure that no fraudulent charges have been made in using your Medicare number.
How can a broker help?
Reporting shows that seniors appreciate being able to choose among many plans, and do not want their number of choices to be limited. However, they would like to have additional help with selecting their plan. Many beneficiaries seek to make well-informed and financially sound decisions but do not feel confident in their ability to do so with the current system.
For as confusing as this information can be, this is the language that we speak. As Medicare experts, we understand the ins and outs. Additionally, we have access to tools that you do not that allow us to see a little bit into the future on how certain plans will perform and how the premiums for those plans may change in the near future.
When you’re ready to talk, if would like some unbiased advice, or if you’re ready to explore your options, feel free to give us call and we can chat about your situation.
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