Medicare Supplements dying?

It is so interesting to talk over Medicare plan options with all the people we come into contact with on a daily basis.  One client hears from their neighbor that the Medicare Advantage plans are the best.  Another hears from her sister that a Medicare Supplement is the best.  Someone else hears that soon almost everyone on Medicare will be on a Medicare Advantage plan.   Let us tell you what we tell our clients.  Everyone is different, we do not believe in a “one size fits all” way to Medicare.

Medicare Supplements dying?  We promise to answer that, but first why do we hear so much about Medicare Advantage plans?  The advertisements for them are overwhelming.  On tv, on the radio and in the mail!  The reason we hear so much about Medicare Advantage plans is that the federal government pays these companies around $1500/mo for each person on the plan.  Companies who have Medicare Supplement plans are paid directly by the customer / client to the tune of about $200/mo.   So of course there is a lot of marketing for Medicare Advantage plans, those companies are making a lot of money.

Medicare Advantage plans offer lower monthly premiums than Medicare Supplement plans offer and include some nice bells and whistles.  This alone might make you think, “well, for sure Medicare Supplements are dying then”.     BUT are those advertisements telling you all of the facts about Medicare Advantage plans?    Now hear us, we have clients on Medicare Advantage plans, they work well for them.  The difference though is that we make sure our clients are educated on the good and bad on both kinds of plans.   Some facts to consider before taking a Medicare Advantage plan; can you cover the out of pocket costs if you get sick, how do you feel about referrals to see other doctors and are you buying the plan for its bells and whistles alone?

Medicare Supplements dying?

No! They are not.  We have a lot of  clients who choose to go with Medicare Supplements and here is why; low to no out of pocket expenses if they get sick and no referrals needed to see a doctor.  You can go anywhere that takes Medicare.  A recent article shows that 93% of seniors on Medicare Supplements are very satisfied with their Medicare plans.  They aren’t satisfied due to bells and whistles, it is because they can sleep good at night knowing that for a higher monthly premium, they have good health insurance coverage.

So, no, Medicare Supplements are not dying.  They are alive and well.  Talk to us or a trusted agent before you call one of these advertisements that will push you towards what plan THEY think is best for you.  Make sure you know all the pros and cons of each side.  Check out Rick’s latest video on this very subject.

Check out our chart below to see the 2 different ways that you can supplement your Medicare A and B.