JB: That one sounds almost too good to be true!
KT: Misconception #4: "The billing process will differ from one company to the next."
JB: I've heard this one, actually.
KT: All the companies and plans pay the same amounts and in the same format. When you sign up for a supplemental plan, you will provide your Medicare number. It's your Medicare number that links the the insurance company and Medicare together. When you have a claim, Medicare, as your primary, will get billed first. Assuming Medicare approves the claim, it will pay its portion. Then, after Medicare pays what it owes, it will send the remaining amount to whatever supplemental company you have, and that company has to pay. Your supplemental company and plan does not approve or deny a claim since that's Medicare's job.
JB: Also good news. Next?
KT: Misconception #5: "Medicare Part D plans (for prescription medications), like the supplement plans, all provide the same coverage amounts but the premiums will differ."
The Medicare Part D plans are not all the same. The premiums and copays will be different. Some of the plans will have deductibles. The plans are not required to cover all the same medications. The best drug plan depends on the medications being taken. By going onto the Medicare website and plugging in your prescription medications, it will tell you the most cost effective plan based on your medications. "Cost effective" means adding up the premium, co-pays, deductible, etc. and choosing the plan which will cost the least over the course of the calendar year. Considering people take different medications, the most cost effective Part D plan will differ from person to person.
JB: Also a big misconception. Thanks for dispelling it.
KT: Misconception #6: "If I don't like the company or plan I chose for supplemental insurance, that's okay because I can change every year."
This is not necessarily true. When you go on Medicare Part B, you entered the Medicare initial "Open Enrollment." This means you can choose any supplemental plan and Medicare Part D drug plan without being underwritten which means your health history will not be reviewed by the insurance company. This Open Enrollment begins within six months before going on Medicare Part B and lasts for six months after enrolling into Part B. Once you've passed your initial Open Enrollment, then you'll have your "Annual Open Enrollment." Every year from Oct 15th to December 7th is the Annual Open Enrollment, which will allow you to change your drug plan from year to year but it doesn't include your supplemental plan. For supplemental insurance, the good news is that you can change your plan anytime during the year and as often as you want. Here's the bad news: The new company or plan you're choosing has the right to review your health and decline your application if they don't like your health history.
JB: So, it's worthwhile to do your homework and nail it the first time to avoid later unpleasantness, expense and other unnecessary tribulations.
KT: Misconception #7: "No matter what medications I'm taking or prescribed, my Part D drug plan will provide me with coverage."
This is not necessarily true. As I said before, when you're in a open enrollment time period, you need to choose the most cost effective plan based on the prescription medications you're taking. After your drug plan becomes effective, then you're stuck with that plan until the next open enrollment period (Oct 15-December 7th). If your doctor prescribes an additional medication which your current plan covers, then that's great! If your plan doesn't cover it, and it's expensive, there's nothing you can do about until you reach the next open enrollment time period.
JB: Okay, readers, stay healthy! Is there more, Kevin?
KT: Misconception #8: "I want to choose a company that is accepted in every state or outside the U.S."
Medicare is a federal program so it's accepted in every state. If Medicare is accepted, then your supplemental plan will be accepted and coverage will be provided, even if you're outside of your home state. Medicare does not provide foreign travel coverage but several of the supplemental plan, like Plans F and G, do provide foreign travel coverage. This coverage is provided within the plan so it does not change from company to company.
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