Straight Talk about Medicare Supplements

Medicare and Medicare Supplements can be a confusing issue to deal with.  Add to that the fact that there have been changes that the administration has proposed and tried to veto, and there are changes that Congress has over-ridden, with all sides trying to tell us that they are trying to fix the Medicare system before it goes from bad to worse.  Perhaps with the new administration taking office in the next few weeks there will be some clarity regarding the issues.

Though things can be perplexing and frustrating, there are some straight answers to some of the questions out there.  One such issue is whether Medicare Advantage will be phased out.  There has been quite a rumor going around stating that this is going to happen.  Actually, this is not going to happen. 

In light of the rumors, there are many questions about what people should do with their old prescription drug coverage, such as Medicare Part J.  Many people want to know if it is prudent to keep what they have or change to Medicare Advantage.

Most advisers suggest changing from their medigap/prescription drug plan (such as plan H, I, or J), since many companies are phasing these plans out and are not selling these plans to new clients any more.  They are allowing people who already have the old policies to keep them, but the premiums are higher than Medicare Advantage premiums and higher than Medicare Part D (for prescriptions), which is government subsidized. 

Medicare Advantage is sold by individual insurance companies, not Medicare.  You can switch to this plan and get your coverage for prescriptions that way, or you can get your coverage through Part D.  It is best to determine what is right for you, especially during open enrollment, which is going on right now and will last until December 31, 2008.   The most important thing to do is to research the correct information and then get the coverage that is best for your circumstances.

Don’t let the confusion draw you in.  The Centers for Medicare and Medicaid Services (CMS) has information on their website and people who will talk to you and answer questions by telephone.  You can also talk with a trusted insurance agent who can help you determine the coverage you need and help you make comparisons of the plans that are available. 

Take the time now – during open enrollment – to find out what you need and make sure to sign up so that your prescriptions and other medical bills will be taken care of.