The best Arizona Medicare supplement insurance policy that offers the most bang for the buck is the Blue Cross and Blue Shield of Arizona Senior Security Plan G. With the vast majority of out-of-pocket expenses covered on the G plan other than the annual Medicare Part B deductible ($233 in 2022) it’s tough to beat. That said, there is another option that may be of interest for those shopping by price alone and that is Plan N.
(As a reminder, no Medicare supplement plan includes prescription coverage, so purchasing a separate Part D drug policy is recommended. Part D plans range in price from $8-$140 per month, the average being $33 a month. The $8 plans are a great fit for many but be certain to shop for the best price each year at renewal. Part D plans are notorious for low-ball pricing the first year and dramatically raising the price the following years. Shopping Part D prescription plans each open enrollment period is easy to do on the Medicare.gov website, and you can enroll as well through the website. If you choose not to purchase a Part D plan when first eligible the federal government will penalize you 1% of the national average price for each month you were eligible for coverage but chose not to be. 1% each month may not sound like much, but it adds up over a lifetime. It will be a lot less expensive in the long run to simply buy the cheapest Part D plan available when first eligible. The penalty is applied when you enroll in a plan.)
Plan N
To be clear, I am not recommending that anyone buy a Plan N, but when every dollar counts, I suppose it should be considered. Like Plan G, Plan N requires that the policyholder meet the Medicare Part B (doctor) annual deductible of $233 in 2022 (the deductible dollar amount changes from year to year, per federal government guidelines.) Plan G does not require an office visit co-payment of $20-$60 but the Plan N does. These differences are no big deal for someone that rarely sees a doctor and may consider a Plan N to save a few dollars. But this may be a huge financial blunder because there is one main difference between G and N we haven’t discussed yet… excess charges. Plan G covers them, Plan N does not.
What Are Excess Charges?
In Arizona and across the country there are three types of medical providers in the eyes of Original Medicare. The most common type of Medicare provider is the Participating provider. Participating providers accept Medicare reimbursement rates as payment in full. Then there are non-Participating providers. Like Participating providers, non-Participating providers are contracted with Medicare as well… but with a catch. Non-Participating providers will see Medicare patients but don’t accept Medicare’s reimbursement rates as payment in full. Non-Participating providers can charge up to 15% more than the Medicare reimbursement rate, otherwise known as Excess Charges. Again, Plan G covers excess charges, Plan N does not.
The third type of medical provider in the eyes of Medicare are those with no contract whatsoever with Medicare.
94% of all doctors in the nation (which total around 950,000) are either Medicare Participating or non-Participating. The remaining 6% have no contract with Medicare. If you see a non-contracted Medicare provider you are responsible for 100% of the bill, Medicare and/or your supplement insurer will pay nothing. You will be required to sign a form at the doctor’s office stating that you understand this.
Of the 6% of medical providers that have no contract with Medicare, approximately 5% are Pediatricians, doctors a Medicare patient will never schedule an appointment with to begin with. This leaves 1% of approximately 900,000 doctors that don’t accept Medicare.