Medicare is a federal health insurance program for people aged 65 and obove as well as certain younger people with disabilities or end-stage renal disease. While Medicare covers many medical expenses, there are still out-of-pocket costs that can be difficult for some seniors to manage. That’s where Medicare supplement plans come in. These plans, also known as Medigap plans, are sold by private insurance companies and can help cover some of the gaps in Medicare coverage. In this article, we will take a closer look at one of these plans: the AARP Medicare Supplement Plan.
What is the AARP Medicare Supplement Plan?
The AARP Medicare Supplement Plan, also known as Plan F, is a popular Medigap plan offered by United Healthcare. Plan F is one of the most comprehensive Medigap plans, covering most of the out-of-pocket costs that Medicare does not cover. With Plan F, you can go to any doctor or hospital that accepts Medicare and you will not have to pay any deductibles, copayments, or coinsurance for Medicare-covered services.
Plan F covers:
- Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are exhausted.
- Medicare Part B coinsurance or copayment.
- First three pints of blood.
- Part A hospice care coinsurance or copayment.
- Skilled nursing facility care coinsurance.
- Medicare Part A deductible.
- Medicare Part B deductible.
- Medicare Part B excess charges.
Plan F does not cover:
- Prescription drugs (you will need to enrol in a separate Part D plan for prescription drug coverage).
- Long-term care.
- Vision, dental, or hearing care.
Why Choose the AARP Medicare Supplement Plan?
There are many reasons why someone might choose the AARP Medicare Supplement Plan over other Medigap plans. Here are some of the benefits:
- Comprehensive Coverage: Plan F is one of the most comprehensive Medigap plans available. With Plan F, you can have peace of mind knowing that most of your out-of-pocket costs will be covered.
- Freedom to Choose Providers: With Plan F, you can go to any doctor or hospital that accepts Medicare. No matter if your insurance company is in-network or out-network you shouldn’t be worried about it.
- No Copays, Deductibles or Coinsurance: Plan F covers all deductibles, copays and coinsurance for Medicare-covered services. This means that you will not have any out-of-pocket costs for these services.
- No Referrals Needed: You do not need a referral from a primary care physician to see a specialist with Plan F. This gives you more flexibility in choosing the care you need.
- Guaranteed Renewability: The AARP Medicare Supplement Plan is guaranteed renewable, which means that your coverage cannot be cancelled as long as you pay your premiums on time. This gives you peace of mind knowing that you will have coverage for the rest of your life.
Disadvantages of AARP Medicare Supplement Plan:
- High cost: The AARP Medicare Supplement Plan is one of the most expensive Medigap plans available, which can make it difficult for some people to afford.
- Limited enrolment period: You can only enrol in the plan during certain enrolment periods, which can make it difficult to switch to the plan if you miss the enrolment window.
- No prescription drug coverage: The plan does not include prescription drug coverage, which means that you will need to enrol in a separate Part D plan if you need prescription drug coverage.
- Limited coverage for foreign travel: The plan provides limited coverage for emergency medical care while traveling outside of the United States.
- No coverage for non-medical services: The plan does not cover any non-medical services such as long-term care or vision and dental services.
How Much Does the AARP Medicare Supplement Plan Cost?
The cost of the AARP Medicare Supplement Plan will depend on a variety of factors, including your age, gender, location and health status. In general, the cost of Medigap plans tends to increase as you get older. However, there are a few things you can do to keep the cost of your plan down:
Enrol during your initial enrolment period: Your initial enrolment period is a six-month period that begins when you are 65 and enrolled in Medicare Part B. During this period, you have guaranteed issue rights, which mean that insurance companies cannot deny you coverage or charge you higher premiums based on your health status.
Choose a lower-cost plan: While Plan F is one of the most comprehensive Medigap plans; it is also one of the most expensive. You may be able to find a lower-cost plan that still meets your needs. For example, Plan G offers similar coverage to Plan F, but does not cover the Medicare Part B deductible. This can result in lower premiums for Plan G. It’s important to compare the costs and benefits of different plans to determine which one is right for you.
Shop Around: It’s always a good idea to shop around and compare rates from different insurance companies. You may be able to find a better rate on the AARP Medicare Supplement Plan from a different insurance carrier. Make sure to compare the costs and benefits of different plans before making a decision.
Consider Your Health Needs: Your health needs will play a large role in determining the cost of your Medigap plan. If you have a chronic condition or need frequent medical care, you may want to choose a more comprehensive plan like Plan F. However, you might be able to save money by selecting a less expensive plan if you are generally healthy and only require basic coverage.
Conclusion
The AARP Medicare Supplement Plan is a comprehensive Medigap plan that can help cover the gaps in Medicare coverage. With Plan F, you can have peace of mind knowing that most of your out-of-pocket costs will be covered. However, it’s important to remember that Plan F is one of the most expensive Medigap plans and there may be lower-cost options available that still meet your needs. When choosing a Medigap plan, make sure to compare the costs and benefits of different plans and consider your health needs and budget. By doing this, you can choose the best plan to suit your requirements and make sure you have the insurance you require to maintain your health and financial security throughout your retirement.
