Medicare Secrets: The Little Known Truths and Concepts About Medicare
There are likely many “secrets” and little known facts about Medicare. But, here are the two that I think are the most important.
Medicare’s Best Kept Secret: The High-Deductible Plan G is, to me, the best kept Medicare secret when it comes to having good financial protection in the event of a catastrophic illness, while at the same time, having very low monthly premiums.
The premium dollars that you can save on a High-Deductible Plan G compared to a Plan G or a Plan F will typically become greater and greater with each passing year. These premium dollars saved can be better directed towards more important needs.
The insurance premium dollars you save on a High-Deductible Plan G can be redirected to help purchase or fund other retirement financial solutions in any of the following ways:
• Long-Term Care
• Annuities
• Life insurance or Final Expense
• Critical and/or Chronic Condition policies that cover what Medicare does not cover (such as transportation, lodging, and alternative therapies)
• Dental and/or Vision insurance
• Emergency savings
• Investments
Why do so few people know about and have the High- Deductible Plan G?
1. Most insurance companies don’t offer the plan.
2. Most insurance agents don’t promote them because we earn so little commission on them. When an insurance agent can offer the right person in the right situation a High-Deductible Plan G and they don’t, they are violating their fiduciary responsibility to you, their client.
This Is Important!
Who Should Consider Getting A High-Deductible Plan G?
1. Only those who are in excellent health.
2. Only those that maintain their health and have a healthy lifestyle.
3. Only those that plan to stay in good health.
4. Only those who understand and are comfortable with the possibility of having to come up with the deductible amount right away in the event of a hospital stay or outpatient surgery.
The Guaranteed Issue Right Secret That Most People Miss Out On
When you are first eligible for Medicare Part B (typically at age 65), you have a Guaranteed Issue Right for six months because of your Open Enrollment period. This right lasts from the first day your Part B starts till the six months are over.
But what about other Guaranteed Issue Rights? You can learn more about all the Guaranteed Issue Rights here on Medicare's website
Once you have Part B, two of the Guaranteed Issue Rights that I see come up the most are:
1. When you lose or come off of Group or Retiree health insurance. This is a tricky one and I discuss it in greater detail under Employer & Retirement Benefits. Providing your employers coverage is secondary to Medicare (which means there are less than 20 employees), then you have a Guaranteed Right to enroll into a Medicare Supplement policy for a limited time (63 days).
2. You have a Medicare Advantage Plan and the plan is terminated or is leaving the area. This happened quite a bit within the first 7 years of Medicare Advantage, and still does occur annually on some plans. When a Medicare Advantage Plan is terminated or “leaves your area”, then you have a Guaranteed Right to purchase a Medicare Supplement policy. And this can be really good news if you happen to have a chronic condition at the time and have been or would have been paying thousands of dollars in copays. Unfortunately, many people just enroll right into another Medicare Advantage Plan when they could’ve gotten a Medicare Supplement policy guaranteed.
When All Else Fails…Get Up And Move!
But, there’s one more that many people don’t take advantage of and may need to, in the event of having a chronic condition and having to pay out thousands of dollars of copays each year.
If you’ve been on Medicare Advantage for more than a year and have lost your trial right, then other than hoping they terminate the plan, what could you possibly do to get a Medicare Supplement guaranteed? Change your address—i.e., MOVE!
Perhaps moving might be too much for you. But, if it could save you thousands of dollars over the course of time—would it be worth it?
Across The Street or The County Next Door: Because most Medicare Advantage plans are local, you may not have to move far…it could be as close as across the street if you live on a county line.
Move In With A Family Member: Many Seniors end up moving in with one of their children at some point. If that is a possibility, then that would be an ideal time to use your Guaranteed Issue Right to obtain a Medicare Supplement.
*Very Important: To accomplish this, you will likely need to show proof of move and termination of exhisting Medicare Advantage plan because you moved out of the plans service area. Be careful to make sure all your ducks are in a row if you want or need to do this.
