It has always been very interesting to our clients that Company A can be 50% less money per month than Company B for the exact same standardized Medicare Supplement Plans. How could this be, well there is no short answer for this. It is a complicated answer with many factors.
State Regulations can be a major factor when it comes to rates, if a state has tougher regulatory standards the prices will show it. For example New York state has the potential “Medical Loss Ratio” of 95% meaning that 95% of the revenue that comes into that company must be paid back out in claims. The state of Colorado has a “Medical Loss Ratio” of 65% meaning they will be able to retain 35% of the revenue that comes into that company from that state.
Why this is so important to note is this, first remember that not all Medicare Supplement Companies sell in every state. With that being said you are still able to use a Supplement in any state at any provider that accepts Medicare in that state. What this means is that some companies have chosen to not sell in states that have high regulatory standards even though there Supplements can still be used in those states.
When a company does decide to sell in a state like New York what we have found is that the cost for plans in that state are very high. Insurance companies need about .30 of revenue for $1.00 they take in just to take care of administrative expenses. So what a company that operates in a state like New York will do is just raise there prices to compensate for higher regulatory standards.
If it was just the people in those states that has higher regulatory costs that suffered from this we would feel bad for them and move on with life. The problem is that any company that sells in a highly regulated state like New York or California will not just raise the rates for there customers in those states, they will also raise the rates for customers across the country to compensate.
What this means for you is simple. If you are in a state where there are high regulatory standards you might want to think about relocating. If you are not in that type of state than it might make sense to choose a Medicare Supplement Plan provider based on where they sell at. It could save you a lot of money.
Thursday, March 3, 2011
Monday, February 28, 2011
Are you on Medicare Disability? How to get the coverage you need.
Under Age 65 Medicare Disability. Getting The Coverage That You Need.
Being on Medicare if you are under the age of 65 can be a stressful issue to think about. If you have started or are starting Medicare and you are under the age of 65 you have probably gone through a lot of obstacles in regards to applying. Also your health might be a huge concern for you as well. The great news is that there are some nice options for you to cover the gaps that Medicare does not cover.
Medicare Supplement Plans are available for people under the age of 65, however not every company offers these types of plans. Individual insurance companies have the right to offer Under Age Medicare plans or choose not to, also each company that does offer these types of plans has the ability to set the premium rates where they want after being approved by the state that they operate in. We have seen some of these premium rates range 150% to 200% more in premium from one company to the other.
So how do you choose the best option for you? Remember that Medicare Supplement Plans are standardized meaning that no matter how much the plan is, if its the same letter plan (for example a plan F) it will pay identical for each company. When you go into the Doctor’s office and give them your insurance card they will be looking at the type of plan (for example Plan F) not the company. Because all of these companies will pay exactly the same.
The most important thing to remember is that the “Guaranteed Issue” status that you will probably need to be underwritten, is the same as if you were turning 65. That means that you must apply 3 months before, the month of, or 3 months after you start Part B of Medicare. This is a total of 7 months. It is imperative to if at all possible use this time to apply for a plan.
It is important to remember that having a Medicare Supplement Plan like a Plan F will allow you to limit your out of pocket for medical expenses in a dramatic way. Although most people that are on Under Age Medicare Disability are currently on a fixed income and sometimes these plans can be expensive it is imperative to have this type of plan to protect your assets.
If you have questions about Under Age 65 Medicare Disability Plans please feel free to call us, or chat with us online for ways to limit your out of pocket expenses. We are experts in handling these types of situations and have helped many people find a plan that works for them.
www.medicarequote4u.com
Being on Medicare if you are under the age of 65 can be a stressful issue to think about. If you have started or are starting Medicare and you are under the age of 65 you have probably gone through a lot of obstacles in regards to applying. Also your health might be a huge concern for you as well. The great news is that there are some nice options for you to cover the gaps that Medicare does not cover.
Medicare Supplement Plans are available for people under the age of 65, however not every company offers these types of plans. Individual insurance companies have the right to offer Under Age Medicare plans or choose not to, also each company that does offer these types of plans has the ability to set the premium rates where they want after being approved by the state that they operate in. We have seen some of these premium rates range 150% to 200% more in premium from one company to the other.
So how do you choose the best option for you? Remember that Medicare Supplement Plans are standardized meaning that no matter how much the plan is, if its the same letter plan (for example a plan F) it will pay identical for each company. When you go into the Doctor’s office and give them your insurance card they will be looking at the type of plan (for example Plan F) not the company. Because all of these companies will pay exactly the same.
The most important thing to remember is that the “Guaranteed Issue” status that you will probably need to be underwritten, is the same as if you were turning 65. That means that you must apply 3 months before, the month of, or 3 months after you start Part B of Medicare. This is a total of 7 months. It is imperative to if at all possible use this time to apply for a plan.
It is important to remember that having a Medicare Supplement Plan like a Plan F will allow you to limit your out of pocket for medical expenses in a dramatic way. Although most people that are on Under Age Medicare Disability are currently on a fixed income and sometimes these plans can be expensive it is imperative to have this type of plan to protect your assets.
If you have questions about Under Age 65 Medicare Disability Plans please feel free to call us, or chat with us online for ways to limit your out of pocket expenses. We are experts in handling these types of situations and have helped many people find a plan that works for them.
www.medicarequote4u.com
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