Why do I pay for my Medicare plan while television commercials say it’s free?

I keep seeing commercials on TV saying that Medicare plans are free.  Why do I pay for my Medicare plan?

We get this question often.  The zero premiums plans that you hear about are Medicare Advantage plans.  These plans are common and many customers do choose them, however they are certainly not free when considering the entire picture.  Medicare Advantage plans come with out of pocket co-pays each time you seek treatment, for each doctor, specialist, etc.  Depending on the company, these co-pays are capped on an annual basis – often upwards of $7,000 per year.  Which means if you see the doctor a lot in a given year, your free plan may cost you in the neighborhood of $7,000.  If you are paying a premium, you most likely have a Medicare Supplement plan with a Prescription Drug Plan.

Medicare Advantage plans also require you to stay “in network”, while you can seek treatment almost anywhere that accepts Medicare with a Supplemental Plan.

By no means am I saying that these plans are bad, they are not.  They are quite popular in fact.  The key is to be educated on how each plan functions and differs from the other plans that are available so that when choosing between a Medicare Supplement and a Medicare Advantage Plan, you have the information you need to decide what best fits your needs.

If you have any further questions or would like to see what your options are, please click or call Beck Insurance Agency at 419-446-2777.  

Lori Good, Senior Products Specialist