How do I buy Medicare insurance?
A good place to start is to have a basic understanding of what Medicare insurance means. The fact is that Medicare is a government-run health insurance program that most people qualify for after years of contributing to the Medicare fund. It is the same principle as social security. You pay for a pool over the years and charge when you are of legal age. Medicare Parts A and B cover approximately 80% of a person’s medical costs, leaving an unlimited exposure of 20%. This exposure is the reason why Medicare insurance plans are required. 20% of a $ 100 medical bill is not that important, but 20% of $ 100,000 is a completely different story. There are two different ways to get Medicare coverage. The first is through a Medicare Advantage plan, which is another term for Medicare Part C.
Choose Medicare advantage plans benefit plan and that particular plan now becomes your primary insurance coverage through the plan you choose. The second way is to keep the original Medicare and add a supplemental Medicare plan to cover the “gaps”. There is a big difference in these two types of coverage and often becomes a source of confusion for Medicare beneficiaries. See page 14 of the “Medicare and you” book for an illustration of Medicare insurance options. The fact is, whatever direction you choose, coverage will be provided by an insurance company. You can do this by going directly to the company or by consulting an independent agent. If you go directly to an insurance company, your options will be limited to the types of plans offered by that particular company. You also won’t know if you are getting the best cash coverage, as most company representatives will encourage you to buy coverage through your company. If he was looking for Buick sedans, the salesman wouldn’t send him across the street to the Ford dealership, even if he personally believed that Ford offers a better car at a better price.
When working with an independent agent, you work with a professional who can offer many options in various companies. Depending on your needs, this agent can help you focus on the coverage that works best for you. Cost is usually a problem and sometimes it is not understood how the independent agent is paid. The agent receives a commission from the company. Does this mean you pay more for coverage? No, no. Companies understand that they will pay an agent to sell and maintain the policy or a customer service representative.