Healthcare can be a significant cost for individuals over 65 years old. One of the best ways to help reduce that cost is by purchasing a Medicare Supplement plan. But what happens when the Medicare Supplement plan becomes more and more expensive? What problems come up when changing medicare supplement plans?
Changing Medicare Supplement Plans
The short answer is, there are always other options available.
For most people on a Medicare Supplement plan, they’re paying 3 monthly costs.
- Part B,
- A Medicare Supplement plan
- Part D.
Please keep in mind the difference between Medicare Plans and Parts. The Plans come from private insurance companies (Plan G, Plan N, Plan F). Parts of Medicare are Part A and B from the federal government. The rest of the Parts are from private insurance companies.
Most people receive Part A for free if they’ve worked in the US for more than 10 years. There are also some exceptions to paying for part A if a spouse has worked in the US for over 10 years.
The first cost is usually the part B premium. It’s taken out of any social security benefits or billed directly every three months. This part B premium may be higher for high-income individuals.
The next part is the cost of a Medicare Supplement plan. This may vary depending on:
- The insurance company you’re with (Anthem, Aetna, United/AARP)
- The plan you choose (Plan G, Plan N, Plan F)
- When you enrolled
- How old you were when you enrolled
- If you use tobacco
The final cost will be for the Part D. This is for prescription drug benefits.
2020 Changing Medicare Supplement Plans
Medicare Supplement plans can change. If you’re still in the first year of Medicare you may be able to change without answering health questions. If you’re past one year, you may need to pass health questions.
You can also drop a Medicare Supplement plan and instead enroll in a Medicare Advantage plan. This is available between October 15th and December 7th. Recent rules have even extended this deadline through March of the following year.