Medicare Supplements Dallas Texas

Dallas Medicare Supplement Insurance, also known as “Medigap” insurance, provides supplemental health insurance coverage for Medicare beneficiaries. Individuals in traditional Medicare may want to obtain Medicare Supplement (“Medigap”) insurance because Medicare often covers less than the total cost of the beneficiary’s health care.

Medicare is divided into two coverage components, Part A and Part B.  Both programs have gaps in coverage that may be covered by supplemental insurance.

Gaps In Dallas Medicare Coverage

Medicare Part A Gaps

Medicare Part A (also known as Hospital Insurance) covers inpatient hospital stays, inpatient skilled nursing facilities, home health, and hospice services.  The following is a partial list of gaps in coverage that are not reimbursed by Medicare:

• Hospital deductible per spell of illness;
• Hospital coinsurance payments (Medicare covers the first 60 days in full after the deductible has been met; days 61 to 90 require a copayment, and days 91 to 150 – the “lifetime reserve days” –  a higher copayment still);
• Hospital services beyond 150 days per spell of illness;
• Skilled nursing facility coinsurance payments (Medicare covers the first 20 days in full; days 21 to 100 require a daily copayment);
• Skilled nursing facility services beyond 100 days per spell of illness;
• Home health aide services that are provided on more than a part-time or intermittent basis;
• Home health nursing and aide services when there is no longer a skilled care component.

Medicare Part B Gaps

Medicare Part B (also known as Supplementary Medicare Insurance) provides coverage for a variety of outpatient and physician services.  It also pays for durable medical equipment, prosthetic devices, supplies incident to physician’s services, and ambulance transportation.  The following is a list of gaps in coverage that are not reimbursed by Medicare:

• Part B deductible (an annual deductible must be met before Medicare will make payment for covered services);
• Part B 20% coinsurance payment (Medicare pays 80% of the approved charge for all Part B services and items, an amount that varies according to the services and items provided);
• Balance billing above the Medicare-approved charge (many physicians and providers charge more than the amount Medicare approves);

NOTE: Starting January 1, 2020, Medigap plans sold to new people with Medicare won’t be allowed to cover the Part B deductible. Because of this, Plans C and F will no longer be available to people new to Medicare starting on January 1, 2020. If you already have either of these 2 plans (or the high deductible version of Plan F) or are covered by one of these plans before January 1, 2020, you’ll be able to keep your plan. If you were eligible for Medicare before January 1, 2020, but are not yet enrolled, you may be able to buy one of these plans.

WHO NEEDS MEDICARE SUPPLEMENT INSURANCE

Medicare beneficiaries fill in Medicare’s coverage gaps in several different ways, including:

• Government Programs (Medicaid/QMB/SLMB);
• Group Retirement Policies (Non-Standardized);
• Non-Standardized Individual Medigap Policies (Issued Before July 31, 1992);
• Standardized Individual Medigap Policies (Issued After July 31, 1992).

Medicare beneficiaries who are also eligible for Medicaid (Title 19) do not need Medigap insurance since Medicaid will cover the cost of their healthcare expenses.  People who do not qualify for Medicaid but are within 100% of the federal poverty level are eligible for coverage under a program known as the Qualified Medicare Beneficiary Program (QMB).  QMB program benefits include:

• Payment of Medicare premiums.
• Payment of Medicare annual deductibles.
• Payment of Medicare coinsurance amounts.

Thus individuals who qualify for the QMB program generally also do not need, and should not pay for Medicare Supplement Insurance.  The qualifying income figures change in April each year.  Contact the Department of Social Services office in your area to find out more about Title 19 and QMB eligibility and enrollment.

Individuals who do not qualify for QMB because of excess income may qualify for the Specified Low-Income Medicare Beneficiary Program (SLMB) or Qualified Individual Program (QI).  People who have incomes within 120% – 135% of the federal poverty level are eligible for SLMB or QI coverage.  However, SLMB and QI only pay for the Medicare Part B monthly premium.  Therefore, SLMB and QI individuals may still want to purchase Medigap insurance if they can afford to do so.  Like QMB, the qualifying income figures change in April each year and the programs are administered by the Department of Social Services.

Some employers offer health insurance coverage to their retirees. Retirees who are covered by such group plans may not need to purchase an individual policy.  While a retiree may choose to switch to an individual plan, this may not be a good choice because group retiree plans usually do not cost anything to the individual and the group coverage is often as good or better than most individual Medigap policies.  Thus the individual should compare his company’s policy costs and coverage with the ten Medigap policies.  The retiree should also consider the stability of his company.  If it is conceivable that the company will falter, that his costs will rise, or that coverage will diminish, the individual may wish to purchase an independent policy.  Remember, however, that if a new policy is purchased the old policy must be dropped.

Most Medicare beneficiaries are not eligible for Medicaid or QMB, however, and may want to obtain Medigap insurance.  Approximately two-thirds purchase Medigap policies.  As of July 31, 1992, Medigap policies were standardized throughout the United States.  This mandatory standardization was a result of legislation passed by Congress through the Omnibus Budget Reconciliation Act of 1990.  There are ten specific benefit plans that federal law permits to be sold as Medigap policies. Two new plans were added in 2006.  States may allow all or some of these plans to be marketed. Insurance companies may sell all or some of the plans that the individual state allows them to market.  However, there is a basic benefits package, known as the “core benefit” plan, which must be allowed in all states and must be offered by any company which sells Medigap insurance.

Although individual Medigap policies have been standardized since 1992, some seniors are still covered by previously issued non-standardized plans. These policies are no longer available for purchase.  However, individuals may continue to keep their old policies and many people have chosen to do so.  Individuals covered by an old policy should consider changing to a new “standardized” plan and should compare the benefits and costs of each of the policies.  Then an informed decision can be made.  An individual who purchases a new standardized policy can only have one Medigap policy and must therefore drop the old, non-standardized plan.  This protects people from the unnecessary costs of duplicate coverage.

THE STANDARD MEDICARE SUPPLEMENT POLICIES

The twelve standardized benefit policies are labeled A through L.  Policy A contains the basic or “core” benefits.  The other eleven policies contain the core benefits plus one or more additional benefits.  The following is a list of the benefits that are contained in the core policy and that must be contained in all new Medigap policies sold beginning July 31, 1992:

1. Part A Hospital Coinsurance for Days 61-90;
2. Part A Hospital Lifetime Reserve Coinsurance for Days 91-150;
3. 365 Lifetime Hospital Days Beyond Medicare Coverage;
4. Parts A and B Three Pint Blood Deductible;
5. Part B 20% Coinsurance.

Additional benefits are offered in policies B through L.  Each plan offers a different combination of these benefits in addition to the core benefits.  Additional benefits are:

1. Part A Skilled Nursing Facility Coinsurance for Days 21-100;
2. Part A Hospital Deductible;
3. Part B Deductible;
4. Part B Charges above the Medicare Approved Amount (if the provider does not accept the assignment);
5. Foreign Travel Emergency Coverage;
6. At-Home Recovery (Home Health Aid Services);
7. Preventive Medical Care.

Policies B through L varies considerably.  Beneficiaries should review the policy packages carefully and decide which coverages are appropriate for them.  The chart at the end of these materials illustrates the various coverages for Medigap policies A through L.

Many issues must be considered before purchasing Medigap insurance.  For example, what specific benefits does the individual require?  How much will the premiums cost?

Are the benefits worth the cost?  Will the individual be able to afford the premiums in the future? What if he/she decides to switch to a Medicare Advantage plan and then wants to, or has to, switch back?

Certain consumer protections are provided under federal law and protect Medicare beneficiaries across the country.