What is the Average Cost of Medicare Supplement Insurance Plans?

While the average cost of Medicare supplement Insurance continues to increase, the average cost of Medicare itself has stayed flat or decreased, according to the latest figures. Many seniors have been confronted with policy rate increases as high as fifteen percent, the independent report finds. Seniors who purchased a private plan and raised their coverage are particularly affected by recent changes in policy rates, according to the Medicare news release. These hikes can have a profound impact on monthly living expenses and can affect Medicare eligibility and cost-of-living adjustments, the news release stated.

There are a number of factors contributing to recent increases in the average cost of Medicare Supplement Insurance premiums, according to the news release. Some factors include: changing trends in Medicare Part B; higher deductibles for Medigap policies; an aging population that put older people into high-risk classes for Medicare; rising deductibles for Medicare Advantage Plans; and higher premiums for “core” Medicare policies such as outpatient medical, prescription drug coverage and vision benefits. Many seniors who are priced out of pocket for their Medicare supplement policies could be considered “high-risk,” according to the news release. They may experience higher premiums due to having “unusable” medication or being in a high-risk class, according to the news release. The new “exchange” plan process may also be setting up seniors to be improperly placed in risk pools, which can result in higher premiums and deductibles, according to the news release.

As more Americans are being diagnosed with ailments that put them in the “high-risk” category for Medicare, they are facing higher out-of-pocket costs for their Medicare Supplement Insurance. The news release stated that seven out of ten seniors fall into the high-risk group for Medicare. These individuals typically do not have an adequate income to cover their regular health care costs. Many senior citizens have to rely on supplemental insurance to meet their needs. According to Medicare Shared Savings Programs statistics, one in five seniors relies on Medicare Part A and Part B.

One important point to remember about Medicare is that, unlike private insurance plans, Medicare does not guarantee any kind of coverage. You can enroll in Medicare Part A and Part B at any time during your life, but there is no guarantee that you will automatically receive a monthly Medicare Supplement Insurance premium. If you don’t meet the average monthly premiums for either part, then you will be responsible for the full premium. This means you could be paying thousands of dollars a year that you do not need to.

There are other ways that you can reduce the Medicare supplement premium payments. You can qualify for additional enrollment period discounts or take advantage of special coupon incentives. You can also lower your Medicare premium by getting a better policy or provider. Keep in mind that most providers’ costs for their medicare supplement plans cost do not vary that much from the prices provided by their competitors. However, you can improve your chances of finding a low-cost plan by comparing quotes from several different insurers.

Medicare is a key federal health program for senior citizens, providing coverage for expenses not considered necessary by private insurance plans. Although Medicare does not cover medical procedures such as chemotherapy or dental care, it does cover certain inpatient hospital stays, nursing home care, and certain prescription medications. If you qualify for Medicare, you may qualify for Part A and Part B of this program. In order to receive Medicare benefits, you must first enroll in Medicare part A or Part B. It’s very important that you understand the basic facts about Medicare and what you should expect when you receive a Medicare Supplement Insurance Plan.