When you celebrate your sixty fifth birthday this year Medicare has a present for you, the new plan N! 7,596 people will be celebrating the big six-five every day in 2011 making them eligible for the senior health plan run by the government called Medicare.
Why is plan N such a great present? Because it offers a comprehensive plan very similar to plan F but at a much lower monthly health insurance premiums. Remember that all plans are standardized by Uncle Sam.
I am going to use a 65 year old male living in Broward County, Florida as an example. He doesn’t smoke, his birthday is January 20, 1946 and his name is Charlie. The insurance company I am using is Blue Cross and Blue Shield of Florida. One of the big differences in pricing senior health plans from carrier to carrier is on how they rate you for your age. One way is attained age, that means that as you have more birthdays your health insurance premiums will increase along with the extra candles on your cake. BCBSFL has what they call a “Same Age Forever” rating guarantee. This means that Charlie’s premium rates are based on the age he is when he first enrolls in a Blue Medicare Supplement policy. Medical costs and inflation could increase the rate but Charlie will never be adjusted into a new premium bracket because of his age. Plan F covers all the gaps in Medicare. Those gaps are: $155.00 deductible for Part B. The 20% co-insurance after the deductible is met and the 15% excess charges a doctor may charge you if he does not accept Medicare assignment. It pays the $1100.00 daily deductible for each 60 day period you are in the hospital and the $275.00 daily deductible for days 61-90. The $550.00 daily deductible for your 60 lifetime reserve days and also gives you an additional 360 hospital days. If you need a skilled nursing facility it will pay the $137.50 for days 21-100, the first three pints of blood per year, at home recovery, Hospice except for small co-pay for drugs and emergency care when traveling outside the country.
The Plan N senior health plan covers the same things EXCEPT The $155.00 part B deductible and when you go to the doctor you will owe a co-pay of $20.00. It does not cover the doctor excess charges so make sure your doctor accepts Medicare assignment. Almost all doctors who take Medicare accept assignment. You will also pay $50.00 co-pay when you are admitted to the emergency room. Ok so now pay attention here is the good part…. Plan F is $248.30 per month and Plan N is $206.00 per month from BCBSFL. Thats $42.30 less expensive a month and $507.60 a year in savings! What would you like to do with $507.60? A cruise, Disneyworld with the grand kids, throw a big party for your friends, your favorite charity, weekend golf getaway?