By Charles W. Moline, CLU, ChFC

Advisornet Financial Austin

This is a question most seniors have when dealing with the cost plan transition. For 2019 you will have more choices, pricing, and plan design to research. There will be two different types of plans, Medigap and Medicare Advantage. In this article we will begin to examine the Medigap Plan of insurance.

Before we start looking at what will be available, it will be important to understand the mechanics of your Cost Plan. The cost plan is truly a hybrid of the two plans mentioned above. When you see a doctor or are admitted as an inpatient it worked like this:

Cost Plan

(being discontinued)

•Part A Charges paid by Original Medicare (inpatient hospital, nursing home)

•Part B Charges paid by the insurance company (outpatient care)

•Part D paid by a stand-alone plan or is part of the cost plan you selected

We will look first at the Medigap Plan of supplemental coverage. The Medigap type of insurance represents one of the oldest and most comprehensive plans sold in Minnesota. These plans are regulated by Minnesota Commerce Department and carry some unique features, first it is guaranteed renewable. If you pay the premiums, this plan cannot be cancelled. The network is contingent on whether the provider takes Medicare. Most providers will take Medicare, you will not normally experience difficulties finding a provider in Minnesota or outside of the state. If you change your residence, you do not have to buy a new plan, your Medigap Plan will work wherever you move. Lastly, riders can be added to cover other unpaid costs and preventative expenses.

This is how your Medigap Plan works:

Medigap Plan

(Option for 2019)

•Part A Charges Paid by Original Medicare (inpatient, nursing care)

•Part B charges Paid by Original Medicare (outpatient care)

•Medigap Plan pays most remaining charges on both Parts A and B

This plan is available with as a Basic with riders available, Extended Basic, high deductible (Plan F) or a plan with co pays or co insurance (plan N)

A Medigap plan maybe a great choice for your future needs. Keep in mind, with these plans it will be necessary to buy a stand-alone Part D (prescription drugs) plan.

Stay tuned for upcoming seminars we will be having for more information on plans available and premiums.

In the next two articles we will examine the other option, Medicare Advantage Plans and Part D (prescription drugs) plans.