Michigan Medicare Supplements

Written by Norene Anderson
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Michigan Medicare supplements are of great interest and benefit to over 1.4 million residents enrolled in Medicare. Medicare is designed in two parts. Part A is the hospital benefit portion and has deductibles and co-payments assigned. Part B is for physician's services, therapies, clinical social workers, x-ray treatment, medical equipment, and other similar services.

Medicare determines what the allowed charges should be for any procedure, provider service, equipment, or other billed charges. Each procedure and service has a code number that corresponds to the amount Medicare will approve. It will pay 80 percent of the allowed (not billed) charges. The other 20 percent of the allowed charges is the responsibility of the beneficiary. There is an annual deductible to be met before Medicare will pay.

Michigan Medicare Supplements to Consider

Michigan Medicare supplements are designed to pay the out-of-pocket expenses that Medicare does not cover such as the deductibles, co-payments, and prescription drugs. Medicare supplements, also known as Medigap policies, are from private insurance companies. Some are in the form of PPO or HMO plans. These plans require the use of physicians and services listed as providers on the plan in order to receive coverage.

Michigan Medicare supplements are standardized in benefits and coverage. Premiums will vary from one provider to the next. All supplements can be filed by the health care provider. Not all providers offer this service, but that is a provider directive and not a result of the type of supplemental policy you choose. Most claims are filed electronically and providers are set to file a claim automatically to the supplemental policy when reimbursement is received from Medicare.

Examine Michigan Medicare Supplements Carefully

Medicare premium changes are made on the first day of January every year. Michigan Medicare supplements are coordinated with Medicare and usually assess an increase in premium at the same time. In some supplemental policies, adjustments in premiums are made for age increases in addition to the annual increase. This puts the highest premiums at the time of life when most people have the least to spare.

Other Michigan Medicare supplements have premiums based only on the age at the time of purchase. These only increase in accordance with Medicare's annual increase. Still another type of supplemental policy premium is based on geographical location. Everyone pays the same regardless of age within specific geographical areas.

Have a Great Retirement

The best option is either a policy premium based on the age at issue or the community-rated supplemental policy. The initial premium may be more than the age-related increase, but the overall policy will be less expensive if you live into your 80s and 90s. There is a time limit to obtain a supplemental policy after reaching Medicare eligibility. There are also requirements that must be met before becoming eligible for Medicare benefits. The applicant or spouse must have worked at least 40 quarters to be covered.

Michigan Medicare supplements offer the best way to keep the out-of-pocket expenses left by Medicare from creating a financial hardship. The additional coverage for prescription drugs, co-payments, and deductibles is well worth the investment in the monthly premium. The peace of mind just knowing you are totally covered is priceless.


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