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Medicare Supplement G vs N, what’s the difference?

If you’re turning 65 or already enrolled in Medicare, you may be wondering about the different Medicare Supplement (Medigap) plans available. Two popular options are Plan G and Plan N, which are similar in many ways but also have some key differences. In this blog post, we’ll take a closer look at Medicare Plan G vs Plan N and help you decide which one might be right for you.

Medicare Supplement Plans

First, let’s briefly review what Medicare Supplement plans are. These are private insurance policies that you can purchase to supplement your Original Medicare coverage. They’re sometimes called “Medigap” plans because they help fill in the gaps that Original Medicare doesn’t cover. There are ten standardized Medigap plans available, each designated by a letter (A, B, C, D, F, G, K, L, M, and N). Plan F is no longer available to new beneficiaries, but those who were enrolled before 2020 may still keep their Plan F.

All Medigap plans must cover certain basic benefits, such as Medicare Part A coinsurance and hospital costs, but the coverage beyond that can vary depending on the plan you choose. Each plan has its own set of benefits, and the premiums can also vary depending on factors like your age, gender, and location.

Plan G vs Plan N

So, what are the differences between Plan G and Plan N? Let’s take a look.

Benefits:

Both Plan G and Plan N offer comprehensive coverage, but there are a few differences in the benefits they provide. Here’s a breakdown:

Plan G: Plan G covers everything that Original Medicare covers except for the Part B deductible. Once you meet the Part B deductible, Plan G pays 100% of your Medicare-approved costs for the rest of the year.

Plan N: Plan N also covers everything that Original Medicare covers except for the Part B deductible and certain small copayments for doctor’s visits and emergency room visits. You’ll pay a copay of up to $20 for doctor’s visits and up to $50 for emergency room visits, but these copays are limited and won’t add up to a large amount of out-of-pocket costs.

Premiums:

The premiums for Plan G and Plan N can vary depending on where you live, your age, and other factors, but in general, Plan G tends to be more expensive than Plan N. This is because Plan G offers more comprehensive coverage, so you’ll pay a higher premium to have that extra protection. However, even though Plan N has slightly less coverage, it still offers great value and may be a more affordable option for some beneficiaries.

Which plan is right for you?

The decision between Plan G and Plan N ultimately comes down to your individual needs and budget. Here are a few things to consider when making your choice:

  • If you want the most comprehensive coverage available and are willing to pay a higher premium, Plan G might be the right choice for you.
  • If you’re looking for good coverage at a more affordable price point, Plan N might be a better option.
  • If you don’t mind paying small copays for doctor’s visits and emergency room visits, Plan N could be a good fit.
  • If you travel frequently outside the US, Plan G covers foreign travel emergencies at 100%, while Plan N has a $50,000 lifetime limit on foreign travel emergency coverage.

Overall, both Plan G and Plan N are excellent options for beneficiaries looking to supplement their Medicare coverage. When making your decision, be sure to consider your budget, health care needs, and any travel plans you may have. And remember, you can always switch between Medigap plans during certain times of the year if your needs or budget change.

Know Your Numbers! Medicare Changes in 2022

It’s not unusual to see Medicare premiums and deductibles increase each year, and this one was no different. Well, it was a little different because we saw the largest Part B premium increase in the history of the Medicare program. That increase left many beneficiaries wondering what other numbers changed in 2022. Let’s review a few numbers you should know.

Part B Premium Increase

The Part B premium saw a 14.5% increase, bringing the standard premium to $170.10. (It was $148.50 last year.) There were several factors that played into this big jump. First, 2021 saw just a $3 increase. Congress imposed limits due to the economic impact of COVID-19, so we saw very little change last year. However, congress also informed CMS that the reduced premium would need to be paid back over time. Packback started in 2022.

Second, the rising cost of healthcare in general, but especially for older adults, continues to hit higher and higher numbers. The pandemic certainly added to the rise in healthcare costs. Higher costs mean higher premiums.

Lastly, and probably the biggest factor in the premium spike, is due to a new Alzheimer’s drug – Aduhelm. The FDA approved Aduhlem in early 2021, although CMS has yet to decide if it will be covered by Medicare. Still, premiums were raised to account for the potential coverage of the drug, which is expected to cost $56,000 per year – for one person. CMS will make a decision on this drug in the spring of this year.

Part A premiums increase as well, but since most Medicare beneficiaries receive premium-free Part A, it was a non-issue for many. If you do have to pay for Part A, you might be looking at a monthly premium of just under $500.

Medicare Deductibles and Coinsurance Costs in 2022

Premiums weren’t the only increase this year. We also saw an increase in Part A, B, and D deductibles.

The Part A deductible is currently $1,556 per benefit period, which is up $72 from 2021. And remember, this is a “benefit period” deductible, so you could pay it more than once per year. A benefit period begins the day you become an inpatient at either a hospital or skilled nursing facility and ends 60 days after you’ve been discharged. The per-day coinsurance costs have also gone up. Days 61-90 will cost you $389 per day (an increase of $18), and lifetime reserve days will cost you $778 per day (an increase of $36).

The Part B deductible went up from $203 to $233 and is only paid once annually. Your Part B coinsurance costs will remain more or less the same since Part B works as an 80/20 cost-sharing split. (Medicare pays 80%, and you pay 20%.)

Lastly, the standard Part D deductible went up from $445 to $480. While most Part D plans use the standard deductible, it’s typically waived for medications in the first one or two tiers, meaning that it won’t apply to more common, generic medications.

Additionally, the coverage thresholds for Part D plans changed. Once you and your plan have spent a total of $4,430 on prescriptions, you’ll enter the coverage gap. (That number is up from $4,130 in 2021.) The amount you’ll pay while in the gap is still the same; only the thresholds have changed. To get out of the gap and into catastrophic coverage, you’ll need to spend $7,050, which is an increase of $500 from last year. If you are someone who takes expensive medications, that number could be concerning.

If you are concerned about any of these increases, give The McCormick Agency a call today. Our licensed insurance agents will make sure we’re doing everything we can to help reduce your insurance premiums and your medical costs.

The ABC’s of Medicare

If you are just beginning to learn about Medicare, it can seem like the entire alphabet is being thrown at you. That gets confusing, so in this article, we are going to discuss the letters you’ll see throughout your Medicare journey.

Medicare Part A

Medicare Part A is your inpatient hospital coverage. An easy way to think about this is as your “room and board” coverage for hospital stays.

Part A will pay for inpatient hospital care, skilled nursing facility care, nursing home care, hospice care, and home health care. There are limits on the total number of days per benefit period you may receive these types of care. Also, Part A will only pay for 80% of the cost of covered services. In 2021, the deductible for Part A is $1484.

Most people receive premium-free Part A. As long as you have worked for ten years (or 40 quarters) and paid Medicare taxes during those working years, you will receive Medicare Part A for no monthly premium.

Those who have not met that requirement will pay a monthly premium for Part A. If you paid Medicare taxes for less than 30 quarters, the Part A premium is $471 in 2021. If you paid Medicare taxes for 30 to 39 quarters, the premium is $259.

 

Medicare Part B

Medicare Part B covers your outpatient, medically-necessary services. It also provides coverage for many preventive services.

Part B will pay for clinical research, ambulance transportation, durable medical equipment (DME), inpatient and outpatient mental health care, and some outpatient prescription drugs. Most prescription drugs are covered under a separate policy that we will discuss later. However, Part B covers some injectable medications that patients or caregivers can administer with instruction.

Just like Part A, Part B will only cover 80% of the costs associated with this coverage. In 2021, the deductible for Part B is $203.

Unlike Part A, Part B does come with a premium. In 2021, the standard premium for Part B is $148.50. Most people qualify for this standard premium, but there are exceptions. High-income earners may pay a higher premium for Part B. This is determined by using your adjusted gross income from two years prior to your coverage. Low-income earners may qualify for special financial assistance programs and pay a lower premium.

Medicare Part C

Medicare Part C is often referred to as Medicare Advantage or MA for short. These plans bundle the coverage of Original Medicare (which is made up of Parts A and B) and move it into one policy. These policies are offered by private insurance companies that have been approved by Medicare to offer coverage.

Medicare Advantage plans offer additional benefits not provided in Original Medicare. This can include benefits for routine dental, vision, and hearing services as well as prescription drug coverage. Some plans even offer gym memberships.

MA plans often come with a $0 premium. This is because the federal government pays providers who elect to participate in the plans. Individuals with Medicare Advantage plans often have to see a provider that is within the plan’s network.

Coverage, deductibles, coinsurance, and copays will vary greatly depending on your location and which carrier you choose for your policy.

Medicare Part D

Medicare Part D contains all of the prescription drug plans. Part D plans are also offered by private insurance companies.

Like Part C plans, your prescription coverage will vary depending on the specific plan you choose. However, all Part D plans must offer antidepressants, antipsychotics, anticonvulsants, immunosuppressants, antiretrovirals, and antineoplastics.

Other than those medications, your prescription drug plan will come with a drug formulary. This is the list of drugs covered by the plan. Each drug is placed in a tier within the plan. The lower tiers contain common, generic medications, while the higher tiers contain specialized, brand-name drugs. The higher tiers are associated with a higher out-of-pocket cost.

Your monthly premium and any deductibles, coinsurance, or copays will depend on the plan you choose.

Medicare Supplements

Medicare supplements are commonly referred to as Medigap plans. These plans were created to fill in the “gaps” left by Original Medicare. They are meant to help pay for the out-of-pocket costs remaining after Original Medicare has paid.

Like Part C plans, Medigap plans are offered by private insurance companies. However, these plans are standardized by the federal government. Standardization means that each of these plans will be the same, no matter which carrier you purchase one through.

Currently, there are 10 Medigap plans on the market: Plans A, B, C, D, F, G, K, L, M, and N.

You can purchase Plan F (for example) at Company X or Company Y, and you will have the exact same coverage. The only difference may be your premium.

The most popular Medigap plans are F, G, and N. Plan F is only available to those who turned 65 before January 1, 2020. Since Plan F is not available to any newly eligible beneficiaries, Plan G is now the most popular, with Plan N trailing closely behind.

We hope this guide has given you a better understanding of the ABCs of Medicare. Medicare can take a while to learn and can still be overwhelming for someone who has been enrolled for years. However, understanding just these basic principles will be very helpful.

We are always just a phone call away if you have any questions about how Medicare works. When you are ready to discuss your enrollment, give us a call!

Why would you want an accident plan?

 

By this time, everyone has seen a commercial for Aflac with the quacking duck as people discuss how Aflac helped get them money when major medical wouldn’t cover their insurance. What you might not know is that Aflac is a company that provides accident/injury insurance, and there are several other companies that provide the same service to cover you in the case of an accident. You may be wondering, what exactly is accident insurance and what does it actually cover?

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Travel Health Insurance, don’t leave home without it!

In 2016, 66 million Americans traveled to an international destination – a number that is expected to continue to grow with each subsequent year. Often times when traveling people don’t think about the possibility of a medical emergency, but it could happen at any time. There’s no worse time to get sick or injured than when you’re traveling. It can make the entire experience incredibly unpleasant for you and anyone you’re traveling with as well. If there is an International trip in your future, you may want to consider the option of purchasing International Travel Health Insurance as a safeguard.

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