What Can You Learn From Having Two Insurance Plans such as Medigap and Medicare Advantage? Drop One.
- Gloria Moses
- Jul 9, 2024
- 2 min read
One thing you can learn about having two similar insurance policies, always compare plan benefits so that you do not pay for coverages that you can’t use. Let’s looks at an example. You and your spouse are still working, for different employers, and you both select separate Group Dental Plans to cover both of you. Both plans have the same benefits; Preventative Services, 100%; Basic Services, 80% after deductible; and Major Services, 50% after deductible. The deductible is even the same for both policies, $50 and $100, individual and family, respectfully.
A few months later, you have a major surgical extraction. After you paid your deductible, your group insurance plan, paid 50%. Your husband’s plan paid 0%. Why? Since the benefit share is the same for both plans, your secondary plan pays nothing. Matter of fact, your husband's plan will probably never make a coordinated payment for you or your plan will probably never make a coordinated payment for your husband. You and your husband are paying for coverage that can’t be used. Therefore, you and your spouse should decide to drop one of the dental plans.
Now, lets look at an example as a retiree. Say you have a Medigap policy and then join a Medicare Advantage Plan. Legally, you can keep both. However, with both plans, your Medigap policy...
premiums will still need to be paid
would no longer provide benefits that supplement Medicare
cannot pay any Medicare Advantage deductibles, copayments, coinsurance, or premiums
This example clearly shows that having a Medigap and Medicare Advantage plan at the same time, you will be paying for coverage that you can't use. If you want a Medicare Advantage Plan, it is best to drop the Medigap policy.
When you are ready to cancel your Medigap policy, make sure you contact your Medigap Policy insurance carrier. Keep in mind, if you drop your Medigap policy to join a Medicare Advange Plan, you may not be able to go back to the same Medigap policy or any Medigap policy--unless you leave your Medicare Advantage Plan during your trial period. See our previous post entitled, "3 Things to Know About Your Medigap Policy When Moving to Another State"to learn more about a trial period.
We hope this information has been helpful to you. If you would like a quote for a Medigap Policy or Medicare Advantage policy, please contact Benefits-4-Retirees.
“Never look back unless you are planning to go that way.” ~ Henry David Thoreau
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