Medicare Supplement FAQ

** If all Medicare Supplements are the same, then why are there differences in price?

The price of a Medicare Supplement depends on if the insurance company does any of the following:

1. Gives a discount to non-smokers.
2. Gives a discount to couples.
3. Gives a discount to females.
4. Gives a discount to healthy people.

Some companies treat smokers and non-smokers the same; single and married people the same, females and males the same and healthy and sick people the same. The companies that treat everyone the same are the most expensive by far. The companies which reward health and give the other discounts are the most competitive.

** Does Medicare Supplement insurance cover Long Term Care?

No! According to page 110 of Medicare & You 2011,

Long term care includes medical and non-medical care for people who have a chronic illness or disability. Non-medical care includes non-skilled personal care assistance, such as help with every day activities like dressing, bathing and using the bathroom. At least 70% of people over 65 will need long-term care services at some point. Medicare and most health insurance plans, including Medigap(Medicare Supplement Insurance) policies don't pay for this type of care, also called "custodial care." Medicare only pays for medically-necessary skilled nursing facility care or home health care if you meet certain conditions.

** What is Medicare Part A?

Medicare Part A is your insurance for hospital services. There are gaps in coverage that most supplements will pay.

For example, for the first 60 days in the hospital, Medicare will pay the entire bill except for the Part A deductible, which for 2011 is $1,132. Most supplement plans will pay this $1,132. If you go back to the hospital after being out for 60 days or more, the deductible would apply again, and, again, the supplement will pay.

If you are in the hospital for 61 to 90 days, Medicare will pay all but $283 per day. If you are in the hospital for more than 91 days, you then have 60 lifetime reserve days for which Medicare will pay all but $566 per day. Once you use those up, you have an additional 365 days for which Medicare will not pay. Most supplements will cover all of these "gaps".

** What is Medicare Part B?

Medicare Part B covers medical services such as inpatient and outpatient medical services and supplies. It also covers physician services as well as speech and physical therapy, diagnostic tests and durable medical equipment. All of these services are covered at 80% of the Medicare-approved amount, after you have satisfied the Part B deductible ($162 in 2011). Many of the supplement plans will pay the $162 as well as 20% of the approved amount.

** How will I determine which of the 11 standardized plans is right for me?

Our agents will recommend a plan based on your needs.