What are the Best Options for Medigap Drug Benefits?

People who like to plan ahead will have plenty of reading to do when preparing for Medicare enrollment. The problem is, even after all this reading it can still be very confusing. As a Colorado health insurance broker, many people come to me asking which way to go with Medigap drug benefits. With all the changes in health insurance and healthcare reform, it is no wonder seniors need help with this.

It used to be much easier when there was only Medicare and Medigap (Medicare supplement insurance). Everything was organized by letter, as in Part A, Part B, Part D, etc. But now there is third option for getting Medigap drug benefits. It's called Medicare Advantage, and it's a one-size-fits-all Medicare plan that is managed by private health insurance companies.

Most seniors like the simplicity of choosing a Medicare Advantage plan because they select the most popular Medigap programs, including Medigap drug benefits, and package them together with traditional Medicare. But for various reasons, some people still choose to buy everything a la carte. Here's why:

• Medigap, or Medicare supplement insurance, allows Medicare-eligible seniors to purchase only the insurance package they need, with the flexibility to add to it as needed.
• Medigap drug benefits, as well as all other Medicare supplements, include predetermined coverage that is dictated by Medicare, not by the insurance company. This means that while the provider can change the monthly premium, they cannot change the provisions of the plan.
• Medicare Part D, also known as Medigap drug benefits, is prescription drug insurance that is managed by a private insurance company. A Medicare-approved prescription drug plan (PDP) adds drug coverage to an original Medicare plan, as well as some Medicare Private Fee for Service (PFFS), Medicare Medical Savings Account  Plans(MSAs)and Medicare Cost Plans.
• Medicare Advantage Plans are another popular way to purchase Medigap drug benefits(Part D). With these plans, you get all the benefits of Part A and Part B, plus prescription drug coverage and some supplemental Medigap coverage.

Keep in mind that if you decline a Medigap drug plan when you first become eligible and you don't have other creditable prescription coverage, you will likely pay a penalty for late enrollment.

To learn more about the ins and outs of Medicare and the best way to purchase Medigap drug benefits, consult with a Colorado health insurance broker from Healthquotes.com. Michael Horvat is a health insurance expert and broker with HealthQuotes.comin Colorado Springs, CO. If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.