If you're on Medicare or will be new to Medicare and you live in either Pennsylvania, Vermont, Connecticut, Ohio, Rhode Island, Minnesota,
Massachusetts or New York this video will have important information on Medicare
that is specific to your state and can save you hundreds of dollars in your Medicare supplement premium.
Most people that have been shopping for Medicare supplement have already heard that
most often Medigap Plan G offers a better combination of price and value
and the very popular Medigap Plan F.
That is true in most states, but not all.
If you live in one of the states that I just mentioned your Medicare Supplement
is subject to a state specific law that reduces the value of Plan F and Plan G.
In those states it is often Plan N that offers the best combination of price and value.
here's why
As we look at this table of Medicare supplement plans
we see the plan name along the top row and the benefit categories on the left hand column.
If you look closely you can see the second to last benefit category is
Plan G offer insurance coverage in case you're subject to a Medicare Part B excess charge
These are the only two plans that offer this benefit.
Built into the monthly premiums of Plan F and Plan G is the cost of paying all potential Medicare Part B excess charges.
What this table doesn't show is that each of the states that I'd mention of a law that forbids Part B excess charges. If you live in Pennsylvania or
Vermont or Connecticut or any of the eight states that I mentioned earlier
you don't need to pay extra insurance against possible Medicare Part B excess charges. You have no risk of being subject to the Part B
excess charge for Medicare Services in your state.
So what is a Medicare Part B excess charge? Well,Medicare Part B is that portion of Medicare
that helps to pay for outpatient and Physician Services.
Where Medicare Part A use for inpatient services in a hospital, Medicare Part B is outpatient and Physician Services.
After you pay the annual deductible for Part B, and that's $166 in 2016,
then Medicare pays for 80% of the Medicare bill
Now, when that Doctor decides to accept Medicare patients then he or she will have to sign a contract with Medicare.
In that contract they agree to either accept assignment or not accept assignment.
When they accept
they lose control over the prices for their services because Medicare
Then, in that agreement Medicare pays its portion
which is the 80%. And then the rest is either paid by your supplement or by yourself if you have no supplement.
For a more specific definition of that always refer to the
which you should all have
and in
Assignment is an agreement by your Doctor, Provider or supplier to be paid directly by Medicare, to accept the payment amount
Medicare approves for the service, and not to bill you for any more than the Medicare deductible and coinsurance.
We can also find that a course in the 2016 version of of the
So a doctor that does not accept Medicare assignment can charge you more
than what Medicare would normally charge and they can bill you directly. The charge is limited to up to 15% more.
The exact formula is a little involved. You can look that up more on the
But the bottom line is that if you have a Medicare supplement plan F or Medicare supplement Plan G
then you're paying for insurance so that if there's a Medicare excess charge your covered.
But if you live in Pennsylvania, Vermont, Rhode Island, Connecticut, Ohio, New York, Michigan and Minnesota
you don't need that coverage because your state forbids those excess charges for all the services in your state that are Medicare covered.
It's like paying for homeowner's insurance that includes a pool when you don't have a pool.
It's just extra costs that you don't need.
Typically a Plan N, as we talked about,
that does not have that coverage for the
and between 15% and 25% over a Plan G.
So, let's take a look at some actual prices. We will take a look at the two different zip codes
and you can see how Plan N can save you money over Medigap Plan F and Medigap Plan G
Alright, so we just want to show a couple quick example so you can see the kind of money you can save for switching to a Plan N.
If you are in the right state and we'll start with the Commonwealth of Pennsylvania
let's see here ... zip code of 19406 and the software shows we will use a woman whose 65 and looking at Plan F.
We can choose any age, obviously, and we will find
that all pretty much going to be the same as far as the amount of savings regardless of age. So let's start by getting a quote real quick here.
We're starting by looking at Plan F. What we want to do is show
how much you can save with the Plan N vs. Plan F or Plan G.
Just to make this easier we'll switch from a monthly price to an annual
and take out the expanded quotes
You can see that in this particular zip code there are a lot of companies offering a Plan F.
And note the prices. They start away from $1,900 a year
all the way up too well over $3,000
, one it than $4,000
for the exact same plan. So obviously you need to shop
regardless you should be shopping your plan on a regular basis
, to see if you getting the good price. I won't say that the cheapest is always the best, I'm not saying that,
but you should shop. So let's take a look and
clear that out. was so we can say that a Plan F here is about $1,900 using round numbers.
We go to Plan G real quick, same person. What will the Plan G cost them? Well the Plan G can cost them
from $1,900 (with Plan F) we're coming down to about $1,500 or $1,600 to save about $300 with a Plan G
Consiering that the only difference between the Plan F and the Plan G
is $166 Medicare Part B deductible
that's still a better value. Plan G is still better value than Plan F.
now we will come down to Plan N, which is similar to the Plan G, except for the fact that you are not are not overpaying
because you are not paying for excess charges. You do on a Plan N have to pay $20.00 co-pay per visit.
But it is minor for the amount of savings because now you are looking at
$1.200 to $1,300 a year
and we comes back and compare that to the $1,900 per year
Now you are looking at about $600 per year savings.
$600 divide that by $1,900
It should be about 30% to 32% savings are so. It's a significant amount of savings going through Plan N
again because of the of the
Medicare Part B excess charges are not allowed in the in Pennsylvania.
With the Plan N you're just simply not overpaying.
You are not paying for insurance that you will not to be able to use. Let's take another real quick look here. We'll go to a Vermont zipcode
and let's just for the fun of it change the age around
We'll use a 71 year old male
and again a start with a Plan F
and let's see what we get here.
Vermont, unlike Pennsylvania is a Community Rated state.
that means all the plans are community rated You can get more details on what that means in the
Let's go to annual rates and un-expand you will see there is not as many choices in here.
We will round the premium
For this 71 year old we're looking at about $2,300 for Plan F
and if we go to a Plan G
Really only saving for the best plan about $300 Thats a little bit of a value considering again
the only difference between the Plan G in the Plan F is the $166 annual Part B deductible payment. (as of 2016)
Now let's move dow n to Plan N, which is better priced for Vermont,
Now you're looking at something as more rate of about $1,400
I would not necessarily go with the lowest price here,,,but we're not going to get into that in this video.
Let's just see here you go down from $2,300 down to about $1,400 -$1,500.
You're saving a $800 a year that's a considerable savings and the only
inconvenienc is of paying the $20.00 copayment when you see the doctor. .
Again; this is because Plan N is not charging you insure against excess charges that are not permitted in your state anyway.
That's the savins you are going to experience. How do you find your own?
Take a look at the quote request form. Get us the information we need so that we can
get to you prices on your own plan and how much you can save. It's very simple, painless doesn't cost anything.
it and it really is since a no brainer to at least get a quote and see what you can save.
So if you live in a state that forbids Medicare Part B e xcess charges but you have a Medicare supplement Plan F or Plan G
your paying for insurance that you probably can't use and you may be paying overpaying by 15 to 30% for your coverage
Remember, unlike Medicare Advantage plans, with Medicare supplement plans there is no open season you can save money on your
Medicare supplement plan any time of year. But the first step is to request a quote.
Let us do some shopping for you to show you how much you can save
Click the link either on this video or the one below and we will email you back
the prices so that you can see what you can save and make an informed decision
I am Matthew Claassen with Medigapseminars.org Thank you for watching.