In a switch from saving in a bad health year, Plan A with lower benefits delivers more savings than Plan G for the 65-year-old. This is because the premiums are lower and the only Medicare expense category covered is the Part B coinsurance. At age 75, because of the higher premiums, it costs the plan member more in premiums for the Medicare Supplement Plan A or G than the plans deliver in cost savings.
There are a couple different ways to structure Medicare coverage. In the absence of any extra help from Medicaid or Social Security for Part D prescription drug coverage, the average Medicare beneficiary will realize the $170.10 for Part B and approximately $35 (national average) for a Part D plan. If the beneficiary adds a Medicare Supplement to cover most of the deductibles, copayments, and coinsurance of Original Medicare, there could be an additional cost of approximately $150 (Plan G in California.) That brings the monthly insurance costs up to $355.
The great thing about Medicare is that you can build your train the way you want. You can change the train cars every year. But the important aspect is that you own the Medicare engine. You are the engineer and you can build your train the way you want it.
The underwriting holiday only excludes the Statement of Health questionnaire, other conditions may prohibit enrollment. For example, Mary, may have cancelled her Medicare Advantage plan during the Medicare Open Enrollment. Mary suffers from rheumatoid arthritis. With the underwriting holiday, she does not have to answer the Statement of Health questions, one of which is if she has rheumatoid arthritis.
Refunds for Anthem Blue Cross members in certain plans in five states (California, Colorado, Maine, Ohio and Wisconsin) will begin August 13, 2012.
Because all Medicare Supplement Plans benefits are regulated by Federal and state laws, all plans in your specific area must include the same benefits.
Theoretically you could have multiple hospital admissions during the year for similar or unrelated medical conditions and continue to incur a deductible, coinsurance and copayments each time under Original Medicare benefit period definitions.