Arizona Medicare supplement plans can help pay for out-of-pocket Medicare costs. On average, Medicare pays approximately 80% of an individual’s medical expenses in any given year. That may seem like quite a bit of coverage until you realize that the remaining 20% that isn’t covered can easily represent many thousands of dollars in out-of-pocket expenses. As an example, a common medical procedure such as a pacemaker implanted in a doctor’s office costs over $70,000! Without a supplement plan such as the Blue Cross of Arizona Senior Plan G, the patient with Medicare only will be responsible for $14,000 of the bill. With a Senior Security G plan, the patient would have no out-of-pocket expense in this example. The maximum financial exposure per year on the G plan is the Medicare Part B deductible of $233.00 (2022.)
When turning 65 and shopping for a supplement plan (a.k.a. Medigap) it is important to note that you must first enroll in Medicare Parts A and B. No matter the insurance company you choose, you cannot buy a supplement plan without having Medicare A and B.
You were likely inundated with advertisements in the mail when approaching age 65, many insurance companies offering Advantage plans, not supplement plans. Medicare Advantage plans are a completely different beast than Medicare supplement plans. An easy way to tell the difference is if one plan offers many “free” benefits like dental, vision, prescriptions, rides to the doctor, etc., and low or no premium, that’s an Advantage plan. A supplement plan will not include prescription, dental, vision, etc., and will cost at least $120.00 a month…. and the supplement plan is a much better deal in the long run!
Advantage plans will likely have a maximum out of pocket limit up to $6000 annually, and a G plan supplement policy will have a maximum of $233.00. An Advantage plan will likely force you into a narrow network of doctors and hospitals, and the G plan allows you to see any Medicare-contracted provider in the country (94% of all providers are contracted with Medicare.)
Over time, the Medicare supplement policy will be the better financial decision as opposed to an Advantage plan. As we all know there are no free lunches. Advantage plans seem to have all the bells and whistles for little to no money, but reasonable and prudent individuals understand that the world simply does not work that way.