Medicare plans for low income beneficiaries can be found from a variety of companies.
It doesn’t take long after you have started to receive Medicare benefits to realize that it doesn’t pay for everything. Your expenses will include copayments, coinsurance and deductibles. Under traditional Medicare, Part B pays for 80% of hospital stays and outpatient treatment. You must pay the remaining 20% and this can be hard to do on a low income.
For seniors who are looking for a comprehensive plan to help with Medicare costs, Medicare Advantage plans are a good option. Advantage plans generally have low premiums. Medigap plans can also help cover the expenses that Original Medicare, Part A and Part B, does not provide coverage for. The good news is that some low income individuals can get help with drug costs from the Low Income subsidy.
Texas Medicare Advantage Plans
A Medicare Advantage Plan is a low-cost option for seniors who need more coverage than Original Medicare plan provides. You get the same benefits as covered under Original Medicare but through a private insurance company. Sometimes there are even additional benefits that include dental, vision, hearing or gym memberships.
You will pay copays for services as you go along, just as you have done in the past on employer. Many people like this because they don’t pay for medical services until they use them.
Most Medicare Advantage plans also provide prescription drug coverage (but not all do). Many beneficiaries enjoy having just one insurance card to present for both medical or pharmacy. One thing you should be aware of—you cannot be enrolled in a Medicare Advantage Plan concurrently with a Medigap Plan. You’ll have to have one or the other.
Texas Medigap Plan N
A Medigap Plan is a supplemental Medicare plan that is added on to your original Medicare plan. Several plans are offered (Plans A-N) with different levels of coverage depending on your individual medical needs and how much you want to pay for a supplemental plan.
Plan F provides the most comprehensive coverage but is also the most expensive. Lower income individuals will often opt for Medigap Plan N. With Plan N, you will get lower premiums than Plan F because you agree to pay copays at the doctor and the E.R. You will also pay the annual Part B deductible.
This budget friendly plan is very popular with people who like the freedom of access that Medigap offers but with a lower price-tag.
What is the Low-Income Subsidy?
The Low-Income Subsidy program is a government program that can help qualifying seniors pay for Medicare Part D prescription drug costs. The program will help pay for your monthly premiums as well as the annual deductible requirement, copay and coinsurance. The amount of subsidy you qualify for will depend on your level of income when compared to the Federal Poverty Level.
You may qualify even with a higher income if you support other family members that also live in your household. You will have to include in your income reported any cash on hand, banking accounts, real estate holdings, stocks, bonds, mutual funds or IRAs. The requirements can change each year, so to make sure you qualify, you can read about the up-to-date requirements at Medicare.gov.
If in doubt, go ahead and apply. Many people qualify and do not realize it. It can’t hurt to try. Just complete the “Application for Extra Help with Medicare Prescription Drug Plan Costs” (SSA-1020) form with Social Security at www.socialsecurity.gov/extrahelp
Both Medicare Advantage Plans and Medigap plans provide good options for low income seniors to supplement their Original Medicare plan. There are advantages to both types of Medicare coverage. Don’t forget to check and see if you are eligible to receive the extra Medicare help from the Low-Income subsidy program.
Get Help with Medicare Plans for Low Income Seniors
If you need a little help deciphering the different options, we have trained agents standing by and ready to help you find the best Texas Medicare supplemental plan for your money.