Industry data shows that, even in this down economy, the demand for Medicare supplemental insurance is up.

People are buying more insurance? It seems counterintuitive in a time when so many of us are cutting back on almost everything.

In fact, the upswing in Medicare supplemental insurance has been going on for a couple of years and is expected to continue well into the future. Why?

The simple — and probably best — answer is that it saves money. Medicare supplemental insurance actually helps control rising health-care costs.

Here’s how:

Medicare provides limited coverage for surgery, ongoing therapy and long-term hospital stays, among other medical necessities. A Medicare supplemental policy fills the gap (thus the term “medigap” insurance) between what Medicare covers and the actual cost of care.

The gap can be pretty wide, and you have to fill it out of your own pocket. At today’s cost of medical care, a reasonable monthly insurance premium for gap coverage can be a real bargain.

Of course, you need to shop around for the right Medicare supplemental insurance. Close to 200 companies offer the policies, but just eight of them insure more than half the policyholders. You should take time to find out which one is the right match for you.

Even though the coverage is the same for the plan you choose, different companies might charge widely divergent premiums. So do your research before you make a choice.

One suggestion: Talk to someone who has already done the legwork. Chances are, when about 65 percent of seniors have Medicare supplemental insurance, you have an associate, friend or family member who has a policy.

Medicare Supplement Plan A is not a very popular choice among people age 65 and older, but all companies supplying Medicare supplements must offer it. You could say Plan A is the stripped-down model, providing basic benefits.

Plan A benefits, which are also offered in the other 12 standard Medicare supplements available, include, among others:
• Co-insurance ($267/day in 2009) for days 61-90 of a hospital stay
• Co-insurance ($534/day in 2009) for hospital stays beyond 90 days, up to an additional 60 days during the insured’s lifetime
• Coverage up to 365 days after use of Medicare hospital inpatient coverage, including lifetime reserve days
• Reasonable cost of the first three pints of blood each year
• Co-insurance (20 percent) for doctor and medical bills under Medicare Part B after payment of the Medicare Part B deductible ($135 in 2009)
• Co-insurance (50 percent) for outpatient mental health services after payment of the deductible

Medicare Supplement Plan B is a lot like Plan A, but there is one significant difference: It covers the Medicare Supplement Part A deductible for hospitalization ($1,068 per benefit period in 2009). But this requires some more explanation.

Usually, medical insurance deductibles are annual. You meet them over the course of a year, and they start all over again the next year. The Medicare Supplement Part A hospitalization deductible is per benefit period. The benefit period begins as soon as you enter the hospital as an inpatient and ends when you’re released and haven’t received skilled care somewhere else for 60 consecutive days. So you could face more than one deductible a year.

Big Changes On The Horizon:

Medicare supplemental plans in 2010 will lower premiums to consumers and may provide additional benefits than their current plans.

Hospice care benefits will be added to all Medicare supplement plans.  Furthermore, plan G will have 100% coverage for excess charges, instead of the 80% it currently covers.

Medicare supplement plan N and M will be rolled out on June 1^st, 2010.

Reviewing Your Current Medicare Supplemental Plans:

Make sure to review your options because while Medicare part D can help reduce the costs associated with medications, it may not be used with some existing Medicare plans.

There will be general changes to the Medicare program itself. Rates for deductibles and co-payments will be increased by Medicare. Your supplemental insurance will change to pay for these increased expenses.

Open enrollment for changing your Part D Medicare prescription drug plan, Medicare Advantage plans and most group insurance plans start November 15th. and end December 31st. 2009. Some plans allow you to change between January 1st. and March 31st. of 2010.

Medicare supplemental insurance policies, or Medigap insurance, are health insurance policies designed to help you pay the bills that come after your typical Medicare coverage runs out.

The policies I can help you get pay some of the costs that your Medicare coverage is not covering for you. Seniors who are 65 and ready for Medicare healthcare coverage should take the time to understand what coverage they will have, and what supplemental insurance will add.

Insurance companies only sell standardized policies, and consumers are currently able to pick from twelve different plans. These supplemental insurance policies must follow strict Federal and State laws, and each plan has a different set of features and benefits.

2009 Medicare Supplemental Insurance Plans

Explanation of the Twelve Current Plans:

Currently there are 12 supplemental Medicare insurance plans for seniors to consider. For example, Plan A has the fewest benefits and is the least expensive, while Plan J is more expensive but provides greater benefits. Richard Insurance is here to help you sort thru all of this. It’s his job to not only find you the best rates, but the best plan for your healthcare needs.

Picking the Best Company:

Standardized Medicare supplemental insurance claim filing requirements are identical; however, the rates you are charged can vary based on the company you choose.

Every year Medicare’s benefits are adjusted to keep pace with inflation. In turn, this adjustment usually causes premiums for Medicare supplemental insurance to increase.

It is important to purchase coverage within the first six months after enrolling in Medicare Part A and B. During this six month period, Insurers must accept you without considering any preexisting health conditions.

3 Methods Used to Quote Rates:

1) The attained age method looks at the age of the person obtaining the policy. Rates are lowest for seniors just turning sixty five, and as you get older, the rates continue to rise. Attained age premiums are most expensive when seniors reach eighty years and older.

2) Issue age premiums. This means premiums are set based on your age at the time you purchase the coverage. Issue age premiums do not increase because you get older, but they will increase due to Medicare’s inflation adjustment.

3) Community rated premiums. Simply put, premiums are set depending on the geographic area you live in. With this type of quote, all seniors living in the same area pay the same rate and age is not considered.

Medicare Supplemental Insurance-A Key Piece of Healthcare Coverage

Medicare supplemental insurance is a very important part of your healthcare coverage. Do not let the different plans and quoting methods confuse you.

Richardt Insurance takes the time so you understand each plan and pick out the best one for your individual needs. In the long run, taking time to research and understand the different Medicare insurance options available to you will provide you additional healthcare coverage and save you money.