In this article, I will try to clarify some of the information and point you in the right direction. By the time you are done reading this article, I hope I will have shed some light on what tends to be an overwhelming task for those faced with it.
A good place to start is to have a basic understanding of what is meant by "Medicare insurance". The fact is Medicare is a government-run health insurance program, which most folks qualify for through years of contributing to the Medicare fund. It is the same principle as social security. You pay into a pool over the years and collect when you are of age.
Part A and B Medicare cover approximately 80% of a person's medical costs leaving an un-capped exposure of 20%. This exposure is the reason Medicare insurance plans are necessary. 20% of a $100 medical bill is not such a big deal, but 20% of $100,000 is a whole different story. There are two different ways people can go to get their Medicare coverage. The first is through a Medicare Advantage plan, which is another term for Medicare Part C. Choose a Medicare advantage plan and that particular plan now becomes your primary insurance coverage through whichever plan you choose. The second way is to keep original Medicare and add a Medicare supplement plan to cover the "gaps". There is a big difference in these two types of coverage and often becomes the source of confusion for Medicare beneficiaries. See page 14 of the "Medicare and You" book for an illustration of your Medicare insurance options.
The fact is that no matter which direction you opt for, the coverage will be provided through an insurance company. You can do this by going directly to the company or by consulting with an independent agent. If you go directly to an insurance company, your options will be limited to whatever types of plans that particular company happens to offer. You will also not know if you are getting the best coverage for the money as most company representatives will encourage you to purchase coverage through their company. If you were looking at Buick sedans, the salesman is not going to send you across the street to the Ford dealer even if he personally feels that Ford offers a better car at a better price.
When working with an independent agent, you are working with a professional who can offer many options through many companies. Based on your needs, that agent can help direct you toward the coverage that will work best for you.
Cost is often an issue and it is sometimes misunderstood how the independent agent gets paid. The agent gets paid a commission from the company. Does that mean you pay more for the coverage? No, it does not. Companies understand that they are going to either pay an agent to sell and service the policy or a customer service representative. They also realize that if an agent sells the policy, they are more likely to retain the customer. Most customers do not have allegiance to a company's customer service representative. When buying direct from a company, you will usually need to dial an 800 number each time you have a question and chances are you will never be speaking with the same person twice.
Medicare insurance is very hard to bottom line. In fact the bottom line is there is no bottom line. The most important thing to keep in mind is that you will want to consult with a professional. It doesn't hurt to have another set of ears in the room when doing this, a family member, friend, or neighbor for example. If working with an agent and you sense pressure such as they want you to make a decision that day and sign on the dotted line, don't work with them. Keep in mind though it is their job to move you through a process which requires action steps. However, if you are feeling pressured, let them know you would like to think it over. If that agent is agreeable, then you probably have a good agent.
A good place to start is to have a basic understanding of what is meant by "Medicare insurance". The fact is Medicare is a government-run health insurance program, which most folks qualify for through years of contributing to the Medicare fund. It is the same principle as social security. You pay into a pool over the years and collect when you are of age.
Part A and B Medicare cover approximately 80% of a person's medical costs leaving an un-capped exposure of 20%. This exposure is the reason Medicare insurance plans are necessary. 20% of a $100 medical bill is not such a big deal, but 20% of $100,000 is a whole different story. There are two different ways people can go to get their Medicare coverage. The first is through a Medicare Advantage plan, which is another term for Medicare Part C. Choose a Medicare advantage plan and that particular plan now becomes your primary insurance coverage through whichever plan you choose. The second way is to keep original Medicare and add a Medicare supplement plan to cover the "gaps". There is a big difference in these two types of coverage and often becomes the source of confusion for Medicare beneficiaries. See page 14 of the "Medicare and You" book for an illustration of your Medicare insurance options.
The fact is that no matter which direction you opt for, the coverage will be provided through an insurance company. You can do this by going directly to the company or by consulting with an independent agent. If you go directly to an insurance company, your options will be limited to whatever types of plans that particular company happens to offer. You will also not know if you are getting the best coverage for the money as most company representatives will encourage you to purchase coverage through their company. If you were looking at Buick sedans, the salesman is not going to send you across the street to the Ford dealer even if he personally feels that Ford offers a better car at a better price.
When working with an independent agent, you are working with a professional who can offer many options through many companies. Based on your needs, that agent can help direct you toward the coverage that will work best for you.
Cost is often an issue and it is sometimes misunderstood how the independent agent gets paid. The agent gets paid a commission from the company. Does that mean you pay more for the coverage? No, it does not. Companies understand that they are going to either pay an agent to sell and service the policy or a customer service representative. They also realize that if an agent sells the policy, they are more likely to retain the customer. Most customers do not have allegiance to a company's customer service representative. When buying direct from a company, you will usually need to dial an 800 number each time you have a question and chances are you will never be speaking with the same person twice.
Medicare insurance is very hard to bottom line. In fact the bottom line is there is no bottom line. The most important thing to keep in mind is that you will want to consult with a professional. It doesn't hurt to have another set of ears in the room when doing this, a family member, friend, or neighbor for example. If working with an agent and you sense pressure such as they want you to make a decision that day and sign on the dotted line, don't work with them. Keep in mind though it is their job to move you through a process which requires action steps. However, if you are feeling pressured, let them know you would like to think it over. If that agent is agreeable, then you probably have a good agent.
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