If you’ve been to the doctor in the past 20 years (or even), then you probably know how expensive those trips can be. There is nothing that you can do about the rising cost of health care, but there are several ways that you can protect yourself from those massive expenses.
Thanks to Medicare, there are millions of seniors that are getting the health care coverage that they wouldn’t be able to afford otherwise. While it’s a great way to get health care, but it doesn’t cover everything. There are dozens of holes in the coverage that could leave you with a massive bill. Those bills can drain your bank account and turn your retirement daydream into a nightmare.
The two best ways to protect yourself is to purchase supplemental coverage, either through a Medigap plan or a Medicare Advantage policy. Both of them are excellent options for additional protection, but this article is going to focus specifically on Medicare Supplement Plan N.
What is a Medigap Policy?
Medicare Supplement Plans are sold by private insurance companies, and they help fill in the holes that your Medicare Part A and Part B doesn’t pay for. There are ten different policies, all of them are denoted by a letter of the alphabet, A through N. Each of them pays for different expenses or a portion of those expenses. Before you apply for one of these policies, it’s important that you compare all of the Medigap plans to decide which one is going to give you the protection that you need.
All ten plans are standardized by the government, which means that all the plans are going to have identical coverage, regardless of which company that you choose. The only difference between the companies is how much they are going to charge you every month. Some companies have higher premiums, while others are going to be more affordable.
After you purchase one of these plans, you will pay the monthly premiums to the insurance company. With a Medigap plan, you will still have to pay your traditional Part A and Part B premiums. Some people have confusion about who they pay the premiums to, or they assume that a Medigap plan replaces their original Medicare coverage. Even if you have a Medigap plan, you are still responsible for your Medicare payments. Not paying those premiums can lead to some serious fees.
Ads by Money. We may be compensated if you click this ad.Ad
Medigap Plan N Coverage
As we mentioned, there are ten different policies, and all of them are different. There is no “one plan fits all” that will work well for every applicant. In this article, I’m going to detail the pros and cons of a Plan N, which is one of the popular options for supplemental coverage.
Plan N is one of the larger policies, which means it’s going to cover more of the holes left behind. There are several key coverage categories that you should be aware of if you are going to purchase this option. One of the first things that you should realize is that 100% of your Part B coinsurance fees are paid for, except for a $20 co-payment fee for a doctor’s visit and a $50 fee for emergency room visits. These are relatively small fees, as long as you don’t go to the emergency room a dozen times every year.
One of the key components of a Plan N is that it will pay for skilled nursing facility coinsurance and Part B coinsurance. Both of these coverage groups can save you thousands of dollars every year. If you end up needing any skilled nursing facility assistance, it can quickly become costly, but having the coinsurance coverage can keep more money in your pocket.
Another area that Plan N pays for is the first three pints of blood if you need it. Additionally, it will pay for hospital coinsurance and costs for an additional 365 days after you traditional Medicare coverage ends.
One of the most notable pitfalls of a Plan N is that the policy doesn’t cover any Part B excess charges, which can be a devastating coverage gap. When you go to the doctor or visit the hospital for any treatments or services, there is a pre-approved amount that Part B will pay. Legally, those doctors and hospitals are allowed to charge 15% above that amount. In most cases, those excess charges won’t break your bank, but depending on the procedure or service that you get, it could put a strain on your bank.
Deciding Which Policy is Best for You
When you’re trying to decide which plan is best for you, there are several factors that you will need to consider. Each plan has pros and cons, and getting the best supplemental coverage is one of the best decisions that you can make.
The first factor (and the most important) that you should consider is your finances. The purpose of the Medigap plan is to ensure that your family isn’t drained by medical expenses, but your supplemental coverage shouldn’t stretch your finances too thin either. Before you apply for any coverage, take a long and hard look at your budget and determine how much extra that you can spend. Everyone would love to have a Plan F, which fills in all of the left over expenses, but that coverage comes at an additional cost.
The next factor that you should take a look at is your health. If you’re in poor health and you have several pre-existing conditions, then a Medigap plan that is comprehensive is going to be a better investment. The worse that your health is, the more money that you’re going to spend on medical bills and other health care costs. On the other hand, if you’re in good health with a clean bill of health, then you can consider taking the risk to purchase a small Medigap plan that leaves more holes and saves you money every month.
These are only some of the different factors that you will need to consider. You will need to look at each plan in light of your specific circumstances. Every Medicare enrollee is different, and all of them are going to need a different supplemental plan.
Enrolling in a Medigap Plan
After you’ve decided which Medigap plan is going to work best for you, the next step is to enroll in a supplemental plan. Thankfully, it’s easier than you might think. After you have found the insurance coverage that you’re going to purchase the plan through, all you have to do is contact a Medigap insurance agent. The agent will walk you through the process.
It’s important that you take note of the Medigap open enrollment period. That’s a 6-month timeframe that beings the month that you’re going to turn 65. This 6-month window is one of the most important factors that you should take advantage of when you’re shopping for additional health care protection.
During your open enrollment period, the insurance company can’t decline your application, regardless of how poor your health is or any pre-existing health conditions that you have. Depending on your health, this might be your only chance to get accepted for Medigap protection.
Another advantage of the open enrollment date is that you’ll get the lowest available premiums for your Medigap plan, even if you aren’t in the best health. During the 6-month window, the insurance company can’t raise your premiums, even if you have a severe health problem. After that window is over, then your application is going to be treated like any other application, and they can jack up your rates based on your health. Applying during the open enrollment can save you thousands and thousands of dollars every year.
If you’ve already missed your open enrollment period, don’t worry, there is still a chance of getting affordable coverage. You might be more expensive, but you can’t put a price on the peace of mind that additional health care coverage will bring you.
Want More Coverage?
If a Plan N doesn’t give you all of the additional coverage that you need, then there are other options. If you want to get the most comprehensive coverage, a Plan F is going to be the best choice. Plan F covers every possible gap that is left by original Medicare. If you want to ensure that you have all the coverage possible, then you should consider buying a Plan F policy.
One of the worst things that you can do is not have enough insurance coverage. If you have subpar coverage, you could be responsible for, but having the proper Medigap plan will ensure that it doesn’t happen. The older that you get, the more that you’re going to spend on health care every year, and all of those bills could ruin your retirement savings account.
Questions or Concerns?
I know that shopping for Medicare supplemental coverage can be difficult. There are dozens of confusing terms and options that you will need to navigate. If you have any questions, you can read some of my other articles and hopefully, they will answer those questions. If you need help applying for coverage or need assistance picking a plan, you can contact Medicare directly using their official site (Medicare.gov), or you can call a local Medicare supplemental insurance company.
The best way to get an affordable Medigap plan is to work with an independent insurance agent. Unlike a traditional Medigap agent, independent brokers work with dozens and dozens of Medicare supplemental insurance agencies across the country. These agents can bring a personalized set of quotes directly to you.
Not only will working with an independent insurance broker save you money, but they will also save you time. If you tried to get all of those Medigap quotes by yourself, you could spend hours and hours calling agents. They can connect you with the best companies to meet your supplemental coverage needs. Additionally, they can give you unbiased advice on which policy is going to meet your needs.
You’ve worked for years and years to reach this stage of your life. Retirement is a special time of life when you can kick back and enjoy all of that hard work. Don’t let those increasing medical bills and hospital fees keep you from fulfilling your retirement dreams.
Hopefully, this explanation of Medigap Plan N has given you the information that you need to make an educated decision about your supplemental coverage. If you’ve decided that the broad coverage of Plan N is not the perfect policy, there are nine other options. If you want more information about the other Medigap plans, I’ve also detailed the pros and cons of the other policies as well.
Health care insurance is constantly changing, especially when it comes to Medicare. The coverage and amount can be confusing, but it’s important that you get the perfect health care coverage that you need.
Medicare is an excellent government program that helps millions of seniors get the health care coverage that they wouldn’t be able to afford through a private insurance company. The problem is that Medicare doesn’t cover everything. There are dozens of coverage areas that the program doesn’t pay for, and those bills could leave enrollees with a massive amount of debt or other expenses.
There is nothing that you can do about the rising cost of health care, but there are a few ways that you can offset those expenses and protect your savings from being drained. The best way to ensure that you aren’t left with a massive amount of bills and other health care costs is to purchase a Medigap plan.
What is a Medigap Policy?
A Medicare supplemental plans are sold by private insurance companies, and they fill in the gaps that are left behind by traditional Medicare plans. There are 10 ten Medigap plans that you can choose from, and all of them have different coverage amounts or bills that they cover. Each of the plans is denoted by a letter of the alphabet, from A to N.
Unlike a Medicare Advantage plan, Medigap plans don’t replace your traditional Medicare coverage. Instead, they work in tandem with your Parts A & B coverage. You will still be responsible for paying your Medicare premiums. It’s important that you realize that Medigap Plan C is not the same thing as Medicare Part C. It can be confusing, but they are two completely different policies with very different benefits.
Medigap plans are standardized by the government, which means that regardless of which company that you choose, the coverage is going to be the same. Each company is required to cover the same expenses, the only difference between companies is how much you’re going to pay for the plan. Some companies are going to have additional benefits, but mostly they are all the same. Because they are all the same, it’s vital that you get dozens of quotes before you pick the one that is going to work best for you.
The best way to do that is to work with an independent insurance agent. Independent brokers work with dozens of highly rated companies across the nation. I highly suggest that you work with an independent agent. If you wanted to get those quotes yourself, you could spend hours and hours calling companies to get those quotes.
Medicare Supplemental Plan C
Now that you know the fundamentals of Medigap plans, let’s look at the specifics of Medigap Plan C. Plan C is not the most comprehensive policy available, but you should still consider purchasing one of these plans. You should look at all of the possible options before you decide which Medigap policy is going to work best for you.
Medicare Supplemental Plan C is going to give you more coverage than both Plans A & B, but there are still some gaps that it doesn’t cover. If you purchase a Medigap Plan C, you get insurance protection from several key categories. One of the most notable is that you will get Part A hospital coinsurance and costs for an additional 365 days after your Medicare coverage has been exhausted. If you’ve ever spent the night in the hospital, then you know that it can be an expensive stay. In fact, just a few nights in the hospital can turn into thousands and thousands of dollars. Having some extra protection could make a huge difference in keeping more money in your bank account.
Another category of coverage is Medicare Part A hospice care coinsurance or copayments. More than likely, these coinsurance fees are not going to be massive, but depending on the hospice care that you need, it could end up being a huge expense, and that’s where your Medigap Plan C would come in.
With a Medigap Plan C, you will also get foreign emergency travel, which is very important. If you plan on doing a lot of traveling in your retirement, then this is one of the most important parts of your supplemental protection that you can get. More than likely, if something were to happen to you, your original Medicare plans would not give you any support for the hospital fees. If something tragic were to happen or you were to get sick while you were outside of the United States, you would have to pay for all of those bills out-of-pocket, which can quickly ruin your vacation. If you have a comprehensive supplemental plan, then it will help pay for 80% of those bills.
Your Medigap Plan C coverage will also pay for the first three pints of blood during a medical procedure. After the first three pints, your original Medicare should pay for any additional blood needed after that, which means that all of those expenses should be covered.
Some of the other less expense is the Medicare Part A deductible (which you probably wouldn’t be paying anyway), skilled nursing facility care coinsurance, and Medicare Part B copayments and coinsurance. All of these can add up to serious bills the more that you need them, but by themselves, they are not going to break your bank.
Is a Medigap Plan C Right for You?
It’s vital that you get the right type of supplemental coverage. Because there are ten different options, it can be confusing trying to decide which one is best for you. There are several different categories and factors that you should look at to ensure that you’re getting the perfect health care coverage.
The first thing that you should look at is your health and any medical problems that you may have. The older that you get, the more that you’re going to spend on medical bills and health care costs. If you’re in poor health or you have some severe health complication, then you can expect to be at the doctor a lot, which is going to translate into expensive bills. Medigap insurance will help pay for those bills and give you the additional coverage that you need.
The next factor to consider is your budget. As a senior, you might be living on a fixed budget, which means you may not have a ton of money to spend on additional insurance coverage. The purpose of Medigap plans is to protect your savings account, but you shouldn’t break your bank every month to have the coverage. Spend some time looking at your finances to decide how much you can comfortably spend on supplemental protection.
Enrolling in a Medigap Plan
Purchase one of these supplemental policies is very easy. A Medigap insurance agent can walk you through the process and help you get the coverage that you need. The application process will not take long, but what’s important is WHEN you apply for your plan.
Before you apply, you need to be aware of your Medigap Open Enrollment Period. This is a 6-month window that starts the month that you start you turn 65. During this period, the insurance company can’t decline your application, even if you have multiple health problems. If you’re in very poor health, this could be your only chance to get supplemental coverage.
Additionally, during the Open Enrollment period, they can’t raise your monthly rates because of your health. After the window has closed, then your application will be treated like any other application, which means that you could get much higher premiums because of your health. If you want to save money, it’s important that you sign up during the first six months.
Have any Questions?
I know that shopping for health care coverage can be challenging and confusing. There are dozens of terms and coverages that seem to make no sense. That’s why I am here to help. I’ve reviewed all of the Medigap options, which can give you the information that you need to make an informed decision about your health care option.
If you still have questions about Medigap coverage, please feel free to contact me or reach out to a Medigap, insurance agent. Your health is the most important thing in your life, and it’s important that you have coverage to protect your finances. Medical bills shouldn’t turn your retirement dream into a retirement nightmare.
Save more, spend smarter, and make your money go further
Investing columnist Matthew Amster-Burton has been answering questions from the Mint.com Facebook page and Twitter. This week: questions about 401(k)s and other retirement plans.
Rolling over a 401(k) to a Roth IRA
Al asks: Can I roll my 401(k) into my Roth IRA when I leave my job?
Sort of. How’s that for a satisfying answer?
Here’s the deal. Unless you have a Roth 401(k) (a fairly new and rare beast), a 401(k) is like a traditional IRA, not a Roth IRA. You put pre-tax money into a 401(k): unlike the rest of your paycheck, your 401(k) contribution goes straight into the account without the IRS taking its share via withholding. Of course, you’ll still have to pay taxes later when you withdraw the money… or convert it to a Roth.
If you roll your 401(k) over to a Roth IRA, you have to pay income tax on the entire balance. Since you’re leaving the money in a retirement account, there’s no early withdrawal penalty, but the converted amount is considered income and you could end up in a higher tax bracket. Furthermore, the tax payment has to come from outside the account. For example, if you’re in the 25% bracket and you roll a $50,000 401(k) over to your IRA, you’ll need to cough up $12,500 cash.
The bottom line: Roll it over to a traditional IRA. You won’t pay any tax or penalty and you can look into doing partial Roth conversions, or none at all, depending on your tax situation.
Pros and cons of 401(k)s and 457(b)s
Robert asks: What are the pros and cons of a 401(k) vs. a 457(b)?
If you’ve never heard of a 457(b), you’re probably not eligible for one, but stay with me a minute, just in case.
A 457(b) is a pre-tax savings plan similar to a 401(k). While 401(k)s are widespread, only public employees and certain highly compensated employees in the private sector have access to a 457(b). (Isn’t “highly compensated employee” a great euphemism for your boss’s boss? It’s right up there with “high net-worth individual.”)
If you have access to a 401(k) and a 457(b), you can contribute $17,000 (if you’re under 50 years old) to either or both. Yes, that means $34,000 in total. The main difference between a 401(k) and a 457(b) is that with the 457(b), you can make withdrawals at any age without a penalty, as long as you’re no longer working for the employer where you signed up for the 457(b).
If you’re a public employee, therefore, it generally makes sense to contribute to a 457(b) before contributing to a 403(b) (the government employee equivalent of a 401(k), and I am so sorry for the alphabet soup), as long as you don’t forego a matching contribution.
There’s a special wrinkle to non-governmental 457(b)s, however: unlike a 401(k), the money isn’t entirely yours. Until you actually withdraw it, it’s an asset of your employer and could be turned over to creditors in bankruptcy. The actual risk of this happening is remote, but it’s scary enough that private sector employees should fill their 401(k)s before considering the 457(b).
The bottom line: A governmental 457(b) is excellent, so use it; a private 457(b) is good, but riskier, so use it only if you fill up your 401(k).
Rolling over 401(k) contributions
Craig asks: Can I annually, or even more regularly, roll over contributions I have made to my employer’s 401(k) into my Roth IRA? I am under 59.
No—except in one unusual situation.
Generally speaking, you have to leave 401(k) money in the 401(k) until you change jobs, retire, or quit in a huff and slide out the back of the plane.
Some employers, however, allow in-service distributions of after-tax contributions. What this means:
You contributed the full $17,000 maximum to your 401(k)
Your company allows you to contribute additional money, after tax
That additional money can be rolled over into a Roth IRA
Yes, this means you have to max out your 401(k) before there’s even a chance you can do this. (Actually, sometimes you can also get away with it if you’re over 59-1/2.) If you’re a highly compensated employee (yay!) and are contributing $17,000 already, by all means, ask your benefits office about in-service distributions.
There’s one other situation where you might be able to do rollovers without cleaning out your desk. If your employer’s plan is a SIMPLE IRA, rather than a 401(k) (yes, a SIMPLE IRA is yet another similar pre-tax retirement plan), you can roll over any money that’s been sitting in the plan for at least two years. And you probably should, because SIMPLE IRAs tend to charge high fees and offer lousy investment options.
The bottom line: You probably can’t do this.
Do you have an investing question for Matthew Amster-Burton? Head over to the Mint.com Facebook page or Twitter and ask away!
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
Previous Post
The Simple and Safe Investment You Might Be Missing Out…
Next Post
Facebook Fan Q&A: The Best Retirement Accounts for Americans Living…
Medicare is one of the biggest government programs in the United States. It provides health care to millions of senior citizens across the country. It gives them health care coverage that they would be able to afford otherwise.
While Medicare is an excellent program that helps protect seniors from massive hospital bills, but it doesn’t cover everything. In fact, there are a dozen different expense categories that they don’t cover. Those groups could leave you with thousands and thousands of dollars of debts.
Every year, the cost of health care continues to rise. There is nothing that you can do stop the rising costs, but there are some ways that you can protect your finances from being wrecked by those bills. One of the best things that you can do is purchase a Medigap insurance plan. These policies will give you additional health care coverage that will work with your traditional insurance policy.
What is a Medigap Policy?
Medigap policies are sold by private insurance companies across the nation. These plans work as an add-on to your Medicare Parts A & B. They don’t replace the original coverage. You will still have to pay the monthly premiums.
The goal of Medigap plans is to fill in all of the coverage holes left behind. There are ten different Medigap plans that are sold, and they are denoted by a letter of the alphabet, A through N. All of the plans offer different coverage or cover portions of various expenses. Some of them are going to cover 100% of certain categories, while others are going to only pay for 80% of them.
Medigap Plan D
Now that you know the basics of Medicare Supplemental insurance policies, we can look at the specifics of Plan D. Before we get started, it’s important that you understand the Medigap Plan D is not the same thing as Medicare Part D. These plans are very different, but a lot of applicants tend to get the two confused, for obvious reasons.
Medigap Plan D is one of the “middle of the road” supplemental plans. It’s not the smallest, but it’s also not the most comprehensive. There are a few key coverage categories that you should be aware of to ensure that you’re getting the best supplemental plan for you.
Medicare Supplemental Plan D is going to pay for necessary expenses like your Part A hospital coinsurance and costs for an additional 365 days after your original Medicare expires. If you’ve ever spent a night in the hospital or several nights, then you know how expensive it can be to stay. If you’re hospitalized for several days or even several weeks, you’ll find yourself with a massive bill in the mail. Your original Medicare Parts A and B are only going to cover a short stay in a hospital, but depending on the condition, you could be there for a lot longer. That’s where your supplemental plan will come in. It will give you the additional coverage that you need to offset those expensive hospital bills.
Your Medigap Plan D will also pay for Part A hospice care coinsurance or copayment and your Part A deductible. Neither of these is going to be massive expenses, but having coverage for them is going to keep more money in your pockets. More than likely, you won’t be required to pay your Part A deductible. Depending on the services that you need from hospice, you could end up with thousands and thousands of dollars out-of-pocket, but that’s where your Medigap coverage comes in.
Additionally, Plan D pays for your Part B copayments or coinsurance. If you go to the doctor or hospital, you’ll be required to pay copayment fees, but if you have Medigap coverage, then your plan is going to pay for those bills. The more that you go to the doctor, the more that you’re going to pay, and the supplemental coverage can help protect your savings account from being drained by hospital bills.
One of the most notable coverage areas of the Plan D policy is the foreign travel emergency costs. Technically, this plan is going to cover 80% of those foreign emergency costs. While it only pays for 80% of those costs, it’s the most protection that you can get, regardless of which plan that you buy. If you plan on doing a lot of overseas traveling in your retirement, it’s important that you have this additional coverage. If something were to happen to you while you were on vacation, your Medicare is not going to pay for any of that.
Some of the other expenses that you plan will pay for is the first three pints of blood for any medical treatment that you may need. After the first three pints, your Original Medicare should pay for any additional pints. Pints of blood can be expensive depending on how many that you need, but your Medigap coverage coupled with your traditional coverage will cover those bills.
The last portion of expenses that the plan will cover is any skilled nursing facility care coinsurance that you would be responsible for paying for. Depending on the type of skilled nursing facility care that you need, it could end up being a massive bill.
What Medicare Supplemental Plan D Doesn’t Cover
There are also a few key expenses that a Medigap Plan D won’t cover, and those coverage gaps could drain your savings account. One of the most notable expenses is the Medicare Part B excess charges. When you go to a doctor or hospital, and you receive any service, there is a pre-determined amount that Medicare will pay for those services. Legally, the doctor or hospital is allowed to charge up to 15% more than that pre-determined amount, and the amount that is above the amount is called excess charges. Without Medigap coverage, you would be responsible for those bills, and because Plan D doesn’t pay for those charges, you would have to pay for those out-of-pocket.
Deciding which Medigap Plan is Right for you
It’s important that you choose which of the ten plans are going to work best for you. There are several key factors that you should consider to ensure that you’re getting the best plan for you. I know that picking between these plans can be difficult, but there are a few key categories that you should review before you apply for any of them.
The first thing that you should look at is your finances. The primary goal of your Medigap plan is to protect your savings account from the mountain of debt that a hospital could give you. While it’s one of the best ways to give you additional coverage, the supplemental plan shouldn’t break your bank every month. Make sure that you look at your budget and calculate how much money you can spend on your Medigap plan.
The next thing that you should consider is your health. If you’re in bad health and you have several dire health complications, then you should consider purchasing a more comprehensive policy that is going to give you the additional coverage that you need. If you’re in excellent health with no pre-existing conditions, then you can consider risking a smaller plan with a cheaper monthly premium.
Open Enrollment
Enrolling in one of these Medigap policies is very simple. The Medicare supplemental agent can walk you through the whole process, but it’s important that you apply during your Medigap Open Enrollment period. This is a 6-month time frame that beings the month that you turn 65. During this time, the insurance company can’t decline your application, regardless of your health or any pre-existing conditions that you have. If you’re in poor health, this could be the only chance that you have to get supplemental coverage.
Additionally, during your open enrollment, the company can’t charge you more for your plan, even if you have severe health problems. If you wait to purchase one of these plans, it could cost you thousands of dollars more every year. If you want to save money, don’t weight to apply for your coverage.
Any Questions?
Medigap plans are one of the best ways to protect your retirement savings and ensure that you can live out your retirement dreams. The older that you get, the more that you’re going to spend on health care and related medical costs. Don’t’ let those expenses ruin your retirement.
If you have any questions about Medigap coverage, please feel free to contact an experienced Medicare Supplemental insurance agent near you or me today. It’s vital that you get the proper coverage.
Stone walls, crocodile-filled moats, Rottweilers — our ancestors found some pretty creative home security solutions!
Today’s home security systems feature a more tech-savvy approach, but the goal remains the same: to keep your family, your property, and your stuff safe from outsiders.
Recent innovations have fueled a new surge in home security sales.
As you shop around and compare systems, consider your home’s security challenges, your lifestyle, and your budget.
Chances are good you’ll find the system you need, whether you’re a new homeowner or just new to the home security market.
How Security Systems Have Changed Over Time and Recently
Believe it or not, tech-driven security systems have been around nearly two centuries. Augustus Russell Pope of Boston combined electricity, magnets, and a bell to create a burglar alarm in the 1850s.
Marketing the invention proved difficult, though, because people feared electricity as much as they feared intruders. As the decades passed, the world caught up with Pope’s idea.
By the early 20th century, electricity had grown safer and more common. The burglar alarm started to catch on.
By the 1970s, home security systems featured motion sensors. Off-site monitoring caught on in the 1980s.
Prices started to fall in the 1990s, making systems accessible for more homeowners. Now the internet has changed the industry again.
For a few hundred dollars in hardware and installation fees — or perhaps less if you install the system yourself — you can monitor your own home from your smartphone from work, school, your commute, or even while on vacation.
These new systems have drawbacks, too, so before you jump in, make sure you’re getting the security your family needs.
Monitored Vs Unmonitored Security Systems
This has become the first question to ask when shopping for home security: Should you pay more for a system with professional monitoring included?
For decades, monitoring fees prevented a lot of homeowners from getting a home security system.
Even the lowest fees can become cost-prohibitive when you pay them month after month and year after year for the indefinite future.
For those homeowners, unmonitored systems may offer the only way into the home security market. If you have a choice, though, give this question some thought.
Monitored systems come with some advantages you may like.
Advantages of Professionally Monitored Systems
Just like with cars, computers, and houses, you get what you pay for with a home security system.
A monitored system costs more, but consider these advantages:
More seamless responses: With an unmonitored system, it would be up to you to contact fire or law enforcement officials when you get an alert about an intruder. When you’re out of town, calling 911 probably won’t work as quickly since you’d have to be transferred between areas of jurisdiction. Someone monitoring your home should be able to contact officials more quickly.
Someone else deals with false alarms: When you’re at work or out shopping and you get a security alert from your unmonitored security system, it’s up to you to assess the risk. If the FedEx guy triggered the alarm by delivering this month’s dog food, you’d feel relieved. But when something like this happens several times a day, it starts to get distracting. A monitored system can take care of these distractions, saving your attention for when it really matters.
Equipment may be included: Customers who buy an unmonitored system tend to be responsible for maintaining and upgrading their own security equipment. A monitored system would more likely include the equipment and, naturally, its maintenance and upgrades. In a fast-changing industry, your gear can get outdated pretty quickly.
Protection isn’t dependent on cell service: Most of us always know where our phones are. But what happens when you’re in an area with poor service or when you lose your phone on the Slinky Dog ride at Disney’s Hollywood Studios? (I’m not judging!) You may not have access to your at-home security system alerts when most needed. A monitored service can contact authorities to protect your home even when you aren’t in the loop.
Advantages of Unmonitored Systems
Unmonitored, also known as self-monitored, home security systems have become the fastest growing segment of the market for a reason. Advantages include:
The cost, of course: Since you could use a self-monitored home security system without paying monthly fees, you can save a lot month to month and year to year. Even if you pay a professional to install the system’s panel or cameras, you can still avoid that monthly bill.
A perfect fit if you’re renting: The home security market has traditionally ignored renters since they don’t have the authority to install hardware or enter a long-term contract. An unmonitored system offers exactly what a renter needs: flexible service with no long-term commitment.
Having more control: When you’re making all the decisions about whether to call for help or whether it’s a false alarm, you’re automatically controlling the response level. Since you know better than anyone what’s normal at your home, this can prevent some confusion. For example, the monitoring service may not know your brother has a spare key but does not know the alarm code. Since you know this, you can automatically filter out the police response as a viable option (unless you really have it in for your brother).
Integrating additional home systems: Some of the best self-monitored systems are an extension of WiFi-enabled home automation. Along with feeling more secure, you can also lock or unlock doors, change your thermostat, turn certain lights on or off, and even control the garden sprinklers (and lawn mowers!), all from an app. (Traditional monitored services have started adding these features, too.)
Can You Get the Best of Both Worlds?
Wouldn’t it be nice if you could combine the best aspects of professionally monitored and self-monitored systems?
Well, the industry has been moving in that direction.
Here’s why: The rapid growth of self-monitored home security systems has grabbed the attention of the traditional home security companies.
The leading monitored services are compensating by adding modern conveniences such as app-based customer control and, in some cases, acquiring smaller, self-monitored home security companies.
And it’s not a one-way street: Some self-monitored services have added the option to have your home professionally monitored, but with a twist. You can get add-on monitoring for a fee only when you need it. That way you could still avoid the contracts and flat monthly fees.
As the market continues to evolve, I’d expect to see less separation between these two categories.
But full-time monitoring will continue to be a separator. It simply costs more money to have someone monitoring your home and responding to problems all day every day.
And in many cases, professional monitoring equals a more secure home.
Should You Buy a Monitored or Unmonitored Security System?
This gradual merging of monitored and unmonitored home security features could, ironically, make it harder to decide what kind of service to buy.
If you like the control an unmonitored system offers, you don’t necessarily have to opt for an unmonitored system anymore. You can find a monitored system with similar capabilities.
Or, if you want a monitored system because you’re out of town a lot, you no longer have to choose from only traditional security service providers. You may be able to find an unmonitored service with added-on monitoring periods without a contract.
If you can’t decide for sure, take a look at your home, your lifestyle, and your personal preferences. They can tell you a lot about your needs.
What Type of Home Do You Have?
The kind of home you’re protecting should help drive the kind of protection you buy.
Makes sense, right?
Well, it’s easy to forget such obvious things once you start comparing features, prices, contracts, apps, and customer reviews.
Take a look around your home. If you have two full floors full of windows and doors, along with a garage door and windows to consider, you’ll need a lot of equipment installed and maintained.
You’ll also have a lot more sensors to trigger false alarms. A monitored system could be worth the cost.
On the flip side, if you live in a 2-room apartment with just a few windows and only two doors, your up-front equipment investment will be less, and you’ll have fewer trigger points to keep an eye on as you monitor things while away. A self-monitored system could do the job.
How Connected Are You?
If a home security system sends an alert to your smartphone but no one is around to hear it, does it make a sound? We could debate that question for hours, and if your phone happens to be off, someone could be stealing your stuff as we contemplate.
With an unmonitored system, you’re on call around the clock via your smartphone. If you’re the kind of person who likes to unplug after work or while on vacation, you may want to lean toward a monitored security system.
If, however, you and your phone are inseparable — if you sleep with the phone beside you on the pillow — you’re likely set up well to monitor security alerts.
That said, I’d suggest using a different ringtone for home security alerts. You wouldn’t want to ignore a serious problem thinking it was just a reminder to pick up your sister’s cat from the vet tomorrow.
How Connected Is Your Home?
Most of us have WiFi at home now. Most does not mean all, though.
People without WiFi at home will have a hard time using all the features of a self-monitored home security system.
In that case, a landline-based, traditional system would be a better option.
If you have WiFi, the quality of your surveillance will depend a lot on the quality of your Internet connection.
As more devices and appliances get online — thermostats, washing machines, tablets, phones, TVs, refrigerators, lawn mowers — there’s more demand on your network. For many of us, a DSL connection just doesn’t cut it anymore.
If you have a gigabit-per-second coming across fiber into your home, your unmonitored security features should work just fine.
How Busy Are You?
A lot of us can add tasks to our regular schedules without a lot of stress. People in the gig economy or with a couple side hustles may have just the kind of schedule flexibility they need to assess threats from their smartphones.
Sure, you may have to re-arrange a few things or tell a client to hold on a second while you check the alert on your phone, but it’s still possible. People who teach school, run meetings, perform surgery, or preside over class-action lawsuits may not have time to check their phones every couple of hours.
Just like any other commitment you take on, consider the time demands of an unmonitored security system.
I’ve been in more than one meeting where someone had to check on a security alert. (Usually, something like leaves blowing onto the porch or a delivery from Amazon triggered the alert.)
Do You Own Your Home?
I referred to this earlier, but it bears repeating. Traditional home security firms more or less ignored renters for years since they didn’t have permission to install a system anyway.
With no wires to run behind walls, a tenant can usually install an unmonitored system without changing the property.
Mounting a camera in the corner is hardly different from hanging a picture, and it’s a whole lot simpler than installing a wall-mounted TV.
Plus, when you move on to a new home in a new city, you could take a lot of the system’s components with you to use at the new rental house. Of course, check your lease agreement to make sure you have permission to make the changes an unmonitored system would require.
And, by the way, if you’re a renter who would like a traditional monitored system, ask your landlord about it. He or she may be fine with the idea, especially since a system could reduce your landlord’s homeowners insurance rates.
Best Security System Providers For 2023
We’ve chewed on a lot of theoretical stuff, so let’s get into what really matters. How do systems compare to each other, and which one should you get?
A year or so ago I would have made two best security system lists: One for monitored security systems and one for self-monitored systems.
The features of these systems have blended so much I think one list will better serve shoppers. I’ll be sure to indicate whether you would need a contract to use each service.
While convenient features are important and worth weighing into the equation, the quality of the system itself still matters most.
So I’ll be giving the quality of your home security system first priority in these comparisons while giving conveniences and customer flexibility a little less importance.
Frontpoint
Contract required: Yes Professional monitoring: Yes Length of contract: At least one year
Remember earlier when I suggested the future of home security will likely blend the features of monitored and unmonitored systems?
I had Frontpoint in mind when I said that.
This company has led this confluence of features, offering professional monitoring plus the conveniences do-it-yourself systems introduced.
Yes, Frontpoint requires a contract and you’ll be paying for 24/7 professional monitoring. But you’ll also have a user-friendly app that can control your locks, lights, and thermostat.
With Frontpoint, you install the equipment yourself since it’s wireless, lightweight, and easy to position with included adhesive strips.
Essentially, Frontpoint offers the best features of monitored and unmonitored services in one package: professional monitoring, quality equipment, convenient features, and a do-it-yourself approach.
That’s why I’ve listed Frontpoint first.
I also like the 30-day, risk-free guarantee. If you’re unhappy with the service, Frontpoint won’t bill you and you can return all the hardware. You won’t be on the hook for the rest of the contract.
I also like the one-year contract. Most companies require a three-year commitment.
Frontpoint offers three price points. If you’d like to access recorded video surveillance from your property, you’ll need to go with the most expensive plan.
Best for: A homeowner who wants mobile control, full-time professional monitoring, and more contract flexibility than usual. Avoid if: You don’t want to enter at least a one-year contract.
ADT Pulse
Contract required: Yes Professional monitoring: Yes Length of contract: At least three years
ADT, a leader in home security for almost 150 years, has also started offering the conveniences of unmonitored security in its ADT Pulse system.
Like Frontpoint, ADT Pulse still bases its services on contracts, but it has bulked up its app to give customers more control over their security equipment. In fact, you can probably incorporate your own cameras and sensors into ADT’s system since it supports many third-party hardware brands.
Unlike Frontpoint, ADT Pulse includes professional installation (and a corresponding $99 set-up fee). The result is another best-of-both-worlds approach for the customer who is willing to enter into a contract.
In ADT’s case, the contract will last at least three years, and you’d be billed a hefty termination fee to get out of it.
ADT will let you out of the contract if you’re not happy with the service, but it’s not a no-questions-asked policy. ADT will try to resolve your issues, which is a good thing if home security is your priority.
Best for: A homeowner who wants a time-tested, trustworthy home security partner with professional installation plus modern mobile-based control. Avoid if: You’re not sure about entering a long-term contract.
ProtectAmerica
Contract required: Yes Professional monitoring: Yes Length of contract: At least three years
By now you’re sensing a trend: Traditional, contract-based home security companies that have adopted modern conveniences are dominating the top of this list.
And for good reason: Ultimately, a home security system should provide the best home security for you and your family, and professional monitoring tends to offer more security.
ProtectAmerica makes this list for those reasons and because of its flexible pricing options. The company has five price points.
I’d stay away from the company’s less expensive, landline-based options. They do not offer the control and integration you’d get from Frontpoint or ADT Pulse (unless you want a traditional, landline-based system).
ProtectAmerica’s broadband and cellular-based options deliver a lot. You can even integrate the system with your Amazon Alexa or Google Home smart device for voice control.
And when an alarm goes off, you can also get a voice prompt from the system telling you which sensor or camera triggered the alarm. When you’re half asleep, this simplicity can pay off! There’s also a panic button which will automatically call for help.
Best for: A homeowner or renter who wants the conveniences of tech-based security with fewer potential complications. Avoid if: You’re shy about a three-year contract.
Vivint Home Security
Contract required: No, unless you’re financing equipment Professional monitoring: Yes Length of contract: At least 42 months (but only when financing equipment)
If you’ve been looking for a no-contract home security solution that still delivers professional results, consider Vivint Home Security. Vivint offers monitoring for a monthly fee, but it doesn’t require its customers to commit to more than one month at a time.
However, if you cancel your account while you still owe money on your equipment, Vivint will bill you for the balance. So even though you wouldn’t have an official contract, you’d still be compelled to keep the service or pay a lump sum to end your connection to the company.
It’s not exactly a no-strings-attached situation, but customers do have more control month to month, especially if they pay up front for the equipment.
Vivint makes this list because of this potential flexibility and because of the flexibility of the company’s equipment.
You can essentially build your own home security and home automation package the way you want. Rather than choosing from a package, you can combine different kinds of surveillance equipment including outdoor monitoring, and different safety features such as smart lighting and thermostat control.
You can manage your system through a Google or Amazon smart speaker or you can use a more customized control panel.
Best for: A homeowner who wants to customize a security solution. Avoid if: You don’t want to pay up front for equipment. If you don’t pay up front, you’ll have a de facto contract.
Link Interactive
Contract required: No, unless you’re financing equipment Professional monitoring: Yes (by a third party monitoring center) Length of contract: N/A unless financing equipment
Link Interactive rounds out my top 5 because, once again, it blends traditional and unmonitored features to give customers the best of both worlds. Link Interactive stands out because it has embraced broadband and cellular networks more thorough than most other providers.
As a result, you can talk with a professional monitor through your control panel at home during an emergency. Sometimes just knowing what’s going on and finding out easily when help will arrive can alleviate stress.
But you should know that Link Interactive uses a third party, which doesn’t always equal a loss in quality, but it does mean the company has less control over the monitoring process.
Still, lots of Link Interactive customers have been satisfied with their service according to TrustPilot and Better Business Bureau reports, which tend to lean toward the negative for security systems.
Link Interactive lets you pay month to month instead of committing to one to three years. However, as with Vivint, if you owe money on your home security equipment, you’d have to pay the balance if you canceled service.
So unless you pay up front for the equipment or pay the balance down enough to make more affordable, you’d likely be sticking with the service for a while.
Essentially, it’s a contract by another name. Link Interactive does stand by its 30-day grace period. If you change your mind or don’t like the service, you can cancel without obligations.
Security matters most, and even though I’ve listed a couple concerns, Link Interactive has the experience (about 70 years’ worth) and the equipment to serve its customers well.
Best for: A homeowner who wants a reliable partner with the best modern conveniences. Avoid if: You don’t plan to stick with the company for at least until you’ve paid off the equipment.
Best Self-Monitored Home Security Services For 2023
I know — I listed my five top choices for home security, and not a single one offers a completely self-monitored system.
I alluded to the reason earlier but here it is again: Professionally monitored systems simply provide better security across the board, and we’re looking for the best home security systems.
In most cases, security tends to be better because you have a staff of monitors at the ready to respond to a crisis at your home.
Most, of course, doesn’t mean all. You may have just the right work-life balance to handle a self-monitored system. Or you might just prefer to self-monitor your home security, either to save money or because you like the control.
If so, you have a lot of choices.
Let’s take a look at a few of my favorites.
Ring Alarm
You’ve probably seen this one on TV. It looks simple, efficient, and affordable.
Overall, it lives up. For only $200 or so up front, you can get a pretty solid set-up and install it yourself. Pricier packages offer more components for larger homes.
You can opt for professional monitoring (for $10 a month or $100 a year) or for self-monitoring, which is free. Ring connects to Z-wave, which means you can incorporate a wide variety of home management and security equipment.
Amazon owns and sells Ring systems, so if you’re a frequent Amazon shopper you’ll know pretty much what to expect.
Best for: A low-cost but useful alternative with professional monitoring available.
Honeywell Smart Home Security
Honeywell, whose name you may have seen on thermostats somewhere along the line, has expanded its business into smart home connectivity, including home security.
You’ll pay more, over $1,000 most likely, to get your system going, but after that, you can do a lot, including arming and disarming the system with a key fob and even integrating facial recognition.
Honeywell’s system works seamlessly with Amazon Alexa, and the system should soon also offer Google Assistant and Apple HomeKit integration.
Honeywell also syncs with Z-wave, which means you can use all sorts of wireless equipment to manage and monitor your home.
Best for: A do-it-yourself alternative that still has top-notch gear and accessibility specializing in self-monitoring.
SimpliSafe
SimpliSafe has grown in name recognition and market share. The company offers a lot of options. About 16 to be precise. They all vary slightly in the number of components and price.
Set-up fees range from about $290 to about $550 depending on how much equipment your home needs. The equipment is easy to install and use. You can go without professional monitoring and keep using the security equipment.
It tends to be harder to incorporate third-party equipment, though. So if you get SimpliSafe don’t assume you can use existing gear from previous systems.
Best for: An all-in-one system for homeowners new to security systems.
Nest Secure
If you use Google products — Google Assistant and the Android operating system, for example — Nest Secure could offer a sensible extension for your home automation and security needs.
Naturally, the service integrates nicely with Google Assistant and your Android phone or tablet. You can spend up to $500 or so getting the equipment set-up.
You can add professional monitoring on a contract or month-to-month basis.
Best for: Customers who already use Nest home automation products. Nest is part of Alphabet, Google’s parent company.
Going Cheap? Create Your Own System And Go Full DIY!
Even though the home security market has changed a lot with the success of self-monitoring systems, customers still have two basic choices:
Enter a contract of some sort to get professional monitoring and pay less up front.
Buy a do-it-yourself system, spending $300 to $1,500 up front, and have the freedom to self-monitor and avoid the contract.
Some customers wonder why they can’t just buy some cameras and door sensors and connect the gear to their smartphone. That may be possible, and if that’s your thing, you could save compared to buying a pre-packaged deal.
But, for the majority of consumers, I do not recommend this approach for a few reasons:
It depends upon your ability to connect and maintain the equipment.
You couldn’t add professional monitoring if you wanted to.
It’s more difficult to self-monitor without an app to centralize the camera feeds and sensor data.
Regional Security Firms May Offer a Lot
I tried to limit this post to companies offering nationwide service. Some regional companies offer great equipment and great service, too.
If you’re considering a regional firm in your area, make sure to check on the following issues:
Who monitors the company’s security systems? Is it local or third party? If third party, try to find out response times for the monitoring service.
Are you as the customer responsible for maintaining the equipment or will the company keep it up to date? If you’re responsible, work that into what you’ll be paying.
Does the system’s control panel have a battery backup during loss of electricity? What about backup for the WiFi connection? If not, the system could leave you vulnerable.
If you have the ability to self-monitor, can you integrate components you already own via Z-wave or another similar service?
What do local law enforcement officials think about the firm? Cops know a lot about home security. They may know the value of a local or regional home security outfit.
Need Proof of Results? Ask Your Insurance Agent
Our homes are personal. Having a stranger violate, steal, or destroy our homes, our property feels like a personal attack even if we’re not home and deal only with the aftermath.
People who have experienced that feeling know it can change the way you look at the world for a while.
It makes sense for homeowners (and renters) to seek some kind of protection against this danger. No system can guarantee your safety and the safety of your family.
But home security systems do get results. For proof, just ask your homeowners insurance company.
Many insurers will give you a discount on your home insurance premiums if you have a professionally monitored home security system. Insurers give this discount because they know a quality home security service will likely reduce the likelihood of a personal property insurance claim.
As you compare systems, consider what kind of security you need and whether what you’re buying fits your home.
Security is personal. It’s up to you to make sure you’re getting a system to match your life.
There is a lot of questions about Medicare and the coverage that it provides. It’s a confusing program that has left millions of seniors with confusion about their health care and the services that they cover. While you may not know it, your Medicare Parts A and B don’t pay for all of the expenses that you may encounter. In fact, there are about a dozen different categories that original Medicare doesn’t pay for, and those categories could leave you with some massive bills.
There is nothing that you can do about the rising cost of health care, but there are some ways that you can protect yourself from having your savings account drained. One of the most popular ways to protect yourself is to purchase a Medigap insurance plan. These policies will give you additional coverage and help will in the holes left behind by Medicare.
What is a Medigap Plan?
Before we look at the specifics of Medicare Supplement Plan B, let’s take a broad view of Medigap plans and how they operate. These additional insurance plans are sold by private insurance companies, and the goal of these plans is to give you additional coverage that traditional Medicare doesn’t.
There are ten different plans that you can choose from, and they are all denoted by a letter of the alphabet, A – N. These policies are standardized by the government, which means that they are going to be identical, regardless of which company that you purchase them from.
The older that you get, the more money that you’re going to spend on medical expenses and health care, and those expenses could quickly drain your retirement savings and turn your retirement dreams into a nightmare, but that’s where these Medigap plans come in.
Because these plans are sold by private insurance companies, the available options and the prices are going to differ depending on where you live and the company that you choose. Because they are standardized, the only difference in companies is going to be the premiums amount. It’s easy to see why you should compare dozens of companies before you pick the one that’s going to work well for you.
Medigap Plan B
Now that we’ve looked at the basic of Medicare supplemental plans, we can look at the details of a Medigap Plan B. Each of the available plans is different, and some of them provide more coverage than others. Plan B is one of the most basic plans, which is going to leave more coverage gaps. Because it provides less coverage, they are also going to have cheaper premiums. Plan B is an excellent way to get additional support without paying the larger premiums.
Plan B is going to cover the basic expenses like Medicare Part B copayments and coinsurance fees. This is one category that every Medigap plan is going to pay. It’s not a massive expense, but having those copayments paid for can keep hundreds of more dollars in your pocket depending on how often you go to the doctor.
Another expense that is coverage by Medigap Plan B is the first three pints of blood that you get if as a hospital inpatient or outpatient treatment. Your traditional Medigap Plan should cover the blood after the first three, which means that the blood will be completely covered if you’re ever in need.
Medigap Plan B will also pay for several Medicare Part A expenses that enrollees would be responsible for otherwise. Supplement Plan B will pay for the Medicare Part A deductible (which you probably wouldn’t be paying otherwise) and Medicare Part A hospital coinsurance for up to 365 days after your Medicare benefits have expired. If you’ve ever spent a night or two in the hospital, you know that it can be an expensive stay. If you’re stuck in the hospital for more than a few days, then it can be a massive bill at the end, but thankfully, your Plan B Medigap policy can offset those bills.
The last portion that your Plan B will pay for is any hospice care coinsurance or copayments. Once again, this would probably be a relatively small fee that you would encounter, but having your Medigap plan cover, it is going to keep some extra money in your pocket.
What Plan B DOESN’T Cover
Because Plan B is going to be one of the smaller plans, there are a few key categories that it won’t cover. It’s important to take note of these before you purchase one of these plans. One of the most notable is the Medicare Part B excess charges. When you go to the doctor and receive a service or treatment, there is a pre-approved amount that Medicare is going to pay for that service. Legally, the doctor is allowed to charge 15% more than that pre-approved amount, and any money above that amount is considered excess charges. Not every doctor or hospital is going to have these excess charges, but if you run into any of them and you have a Medigap Plan B, then you have to pay for these expenses out-of-pocket.
Another key coverage gap with Medigap Plan B is the foreign travel emergency care. If you plan to do a lot of traveling in retirement, then it’s important that you get a supplemental plan that covers foreign emergency care. In the vast majority of cases, traditional Medicare plan is not going to pay for any of those hospital fees if you’re outside of the United States, which can lead to massive hospital bills and a ruined vacation. If you have a comprehensive Medigap Plan, like a Plan F, then some of these expenses will be covered. None of the plans will pay 100% of it, but you can get some protection.
Deciding Which Medigap Plan is Right for You
It’s important that you pick the perfect supplemental coverage for you and your health care needs. There are several different key factors that you should review before you purchase any Medigap plan.
The first thing that you should do is calculate your budget and decide how much you can spend on supplemental coverage every month. The purpose of your Medigap plan is to protect your savings account, but your insurance plan shouldn’t break your bank every month. Make sure that you get a plan that will fit comfortably in your budget without stretching your finances.
The next thing you should look at is your health and family history. If you’re in poor health or you have any pre-existing conditions that could cost you massive medical expenses, then you should consider investing in a larger comprehensive supplemental plan. On the other hand, if you’re in good health and your family history doesn’t have a trend of poor health, then you could risk buying a smaller plan that leaves more coverage gaps but saves you money.
Open Enrollment Period
After you’ve decided which type of plan that you’re going to purchase, you will need to enroll in that plan. That’s easy to do. All you have to do is contact a Medigap agent, and they will take care of the application process for you. It’s a simple process, that is similar to purchasing a life insurance policy.
What’s important is the WHEN you apply. It’s vital that you sign up during your Medigap Open Enrollment period. This is a 6-month window that begins the month that you turn 65. During this period, the insurance company can’t decline your application, regardless of how poor your health is or any health problems that you have. During these six months, any Medigap plan that you want to purchase is guaranteed acceptance.
Additionally, if you purchase a Medigap plan during these six months, the company can’t charge you higher premiums, even if you aren’t in great health. After the open enrollment period is over, then your application will be treated as a normal application, which means that you could get much higher rates for your coverage. Taking advantage of the six months could save you thousands of dollars.
Questions or Concerns?
These Medigap plans are one of the best ways to get additional coverage that Medicare doesn’t offer. While Plan B might not be the best supplemental coverage for you, it’s important that you find the plan that will. I have reviewed all of the options that you can choose from.
If you have any questions about Medigap plans or supplemental coverage, feel free to contact me, or you can contact a Medigap agent. They can answer any of those questions that you may have and ensure that you’ve got all of the information that you need.
For most people, their health tends to get pushed to the back burner. The older that we get, the more money that we spend at the doctor and on our health care needs. As a senior, the largest part of health care insurance is Medicare. The government program has provided health care coverage to millions and millions of people across the United States. For a lot of these seniors, they wouldn’t be able to afford this protection if they applied for a policy through a private company.
The problem is that Medicare doesn’t cover everything that seniors may run into as they get older. Those coverage gaps could leave you with a mountain of hospital bills and medical fees. Those bills could quickly drain a retirement account and leave seniors with too little money in their retirement age.
Luckily, there are several ways that you can get some additional coverage against rising medical bills. It’s vital that you have the health care coverage that you need. One of the best ways to do that is to purchase a Medigap policy.
What is a Medicare Supplemental Plan?
These Medigap plans are sold by private insurance companies and are separate from the government Medicare program. The goal of these plans is to fill in the gaps that Medicare leaves behind. If you have one of these plans, then you’ll still be required to pay the premiums for Plan A and B, and you’ll also pay a private insurance company every month for the additional coverage. Some Medicare enrollees assume that these Medigap plans replace original Medicare, but that is not true.
There are ten different supplemental plans that you can choose from, depending on where you live. Not every state allows all the plans. These plans are denoted by a letter of the alphabet, from A to N. The different plans are going to cover different expenses or a portion of expenses. Some of them are going to provide more comprehensive coverage, like Plan F, while others are going to be more basic, like a Plan A. #ap71886-ww
font-family: Archivo, sans-serif;
#ap71886-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap71886-ww #ap71886-ww-indicatortext-align:right;color:#4a4a4a#ap71886-ww #ap71886-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap71886-ww #ap71886-ww-indicator-wrapper:hover #ap71886-ww-textdisplay:block#ap71886-ww #ap71886-ww-indicator-wrapper:hover #ap71886-ww-labeldisplay:none#ap71886-ww #ap71886-ww-textmargin:auto 3px auto auto#ap71886-ww #ap71886-ww-labelmargin-left:4px;margin-right:3px#ap71886-ww #ap71886-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap71886-ww #ap71886-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap71886-ww #ap71886-ww-text-bottommargin:5px#ap71886-ww #ap71886-ww-textdisplay:none#ap71886-ww #ap71886-ww-icon imgtext-indent:-9999px;color:transparent
Ads by Money. We may be compensated if you click this ad.Ad
What Does Medigap Plan K Cover?
Now that we’ve looked at the foundational information of supplemental plans let’s take a deeper look at Medigap Plan K. For a lot of applicants, Plan K is a great policy, but it’s important that you compare all of your options before you decide which one is going to work best for you. Plan K is not the most popular option, but there are several advantages of this plan that you should be aware of when you’re shopping for additional coverage.
Plan K is one of the smaller policies that is going to provide basic coverage (which means lower monthly premiums). Unlike other plans that pay 100% of categories, Plan K is only going to pay for a portion of those expenses. For most of the categories, it pays 50% of these expenses. I’ll discuss those categories later in this article.
One of the unique advantages of Plan K is the yearly out-of-pocket limit that it includes. With Plan K, the out-of-pocket limit is $5,120, but that number can change every year. Once you’ve reached this threshold, your Medigap plan is going to cover 100% of your Medicare-covered costs for the remainder of the year. This is a nice safety net to have for your supplemental coverage, especially if you have a drastic health condition that could rack up a massive amount of health care costs. Plan K is only one of two plans that have an out-of-pocket limit, the other plan is Plan L, which has a much lower limit. With Plan L, the limit is half of Plan K’s limit.
If you purchase a Plan K, you’re going to get 50% coverage for these categories:
Medicare Part A deductible
Part A hospice care coinsurance or copayment
Skilled nursing facility coinsurance
Part B copayment or coinsurance
First three pints of blood for medical procedures
Until you reach the out-of-pocket limit, you will have to pay half of all of the categories. For most people, 50% coverage is enough to give them the financial protection that they need, but for others, they would like to have those expenses completely coverage. This is one of the most unique traits about the Plan K, is that it only pays for half of the categories.
These are the main coverage categories for your Plan K. There are a few key areas that you won’t get any coverage at all. The two main ones are the Part B deductible (which no plans are allowed to pay for anymore) and the Part B excess charges.
When you go to the doctor or have any medical services done, there is a pre-determined amount that they are going to pay for those treatments. Legally, the doctor is allowed to charge 15% more than that pre-determined amount, and everything above that is considered excess charges. With a Plan K, you’ll be responsible for paying for all of those excess charges out-of-pocket. In most cases, these are not going to be huge bills, but depending on the treatments or services that you get, it could end up draining your bank account before you know it.
Choosing the Plan That Works Best for You
Is a Plan K right for you? Plan K is a specific Medigap plan that scares a lot of applicants away. The half coverage keeps a lot of Medicare enrollees from choosing this plan, even though they could save money by picking this plan. If you don’t think a Plan K is best for you, there are several other excellent options that you can choose from. I know that picking a plan can be difficult, but there are several key factors that you should look at when you’re shopping for supplemental coverage.
The first thing that you should look at is your finances. The goal of your Medigap plan is to protect your savings account from being hit with thousands and thousands of dollars of medical bills, but you shouldn’t have a plan that’s going to stretch your budget every month. Before you apply for any of these plans, take a long hard look at your finances and see which one is going to fit comfortably.
The next thing that you should consider is your health. The purpose of your Medigap plan is to ensure that you’re getting the proper health care coverage without having to foot that bill yourself. If you’re in excellent health with no serious health complications, then you can consider purchasing a smaller plan, like a Plan K, which leaves more gaps in your coverage. On the other hand, if you’re in poor health and have several red flags on your medical history, then you should consider enrolling in a more encompassing plan that fills in all of the gaps left behind by Medicare.
Medigap Open Enrollment Period
Once you’ve decided which plan that you want to buy, Plan K or one of the nine others, it’s important that you take advantage of your Medigap Open Enrolment Period. This is a six-month window that starts the month that you turn 65. During this window, the insurance company can’t decline your application, regardless of your health or any pre-existing conditions that you may have. If you have some drastic health problems, this could be your only chance to get supplemental coverage.
If you apply during your Medigap Open Enrollment period, the insurance company can’t increase your premiums before of your health. If you purchase one of these plans outside of the open enrollment date, then your application will have to go through the underwriting process. That means that you could get drastically higher rates for your supplemental coverage. If you want to save money, it’s important that you apply during this time frame.
If you’ve already missed your Medigap Open Enrollment date, don’t worry, there is still a good chance that you can get affordable supplemental coverage.
Questions or Concerns?
This is the basics of Plan K coverage. If you still have questions about Plan K or supplemental coverage in general, please feel free to contact me or an experienced Medigap insurance agent today. Your health care coverage is one of the most important factors, especially as you get older.
It can be difficult keeping up with all of the changes to Medicare and supplemental coverage, but that’s why I am here to help. It’s my goal to give you the information and resources that you need.
Our semi-regular series on motherhood is back today and I’m particularly excited about this post. While we’ve tackled weighty motherhood-related topics in past posts (breast feeding, co-parenting, self-care, the election) this post is touch different – because we’re talking about books!
Now some moms might be sharing their favorite parenting books, but since I’m always on the hunt for good children’s books (and haven’t found the time to actually read any parenting ones yet – whoops) I’m focusing on books for the littles. Because they really are books for us too. We’re the ones reading them after all!
Surely, the world of children’s books is nearly endless but some books really do stand out from the crowd. And my definition of good is not as straightforward as it sounds. To classify a kid’s book as worthy it has to be visually appealing with lovely illustrations, have a truly good story, be well written (for the most part) and not drive me absolutely bat-sh** to read it for the 1,000th time. I’m tellin’ ya, it’s a tough bar. Pete the Cat does not make the cut. But I’ve managed to begin building a collection of kids books that both I and my kiddo equally adore. To the point where he has half of them nearly memorized. And wants to read each a minimum of three times in a row, stretching evening storytime into a freaking hour, but I digress. Because these books don’t suck, I’m ready and willing to do it.
To remind, I now have a toddler one my hands, so these are not board books. He’s just trustworthy enough to flip through the pages on his own. While I’ve found some good board books I love, classics like Go Dogs Go and Brown Bear, Brown Bear, I haven’t found as many board books that I also find truly compelling. If anyone has any recs, I’d love to see them!
1. Almost an Animal Alphabet by Katie Viggers. This alphabet book takes the ABCs to another level. Charming illustrations, actually interesting information about animals and a hidden joke or two make me smile every time we read this book.
2. Ish by Peter H. Reynolds. Ish might just be my favorite children’s book I’ve read thus far. A truly sweet story about a little boy who loves to draw, but his joy is stymied when he’s teased. But through a lesson, from a younger sister no less, little Ramon finds his love of art again. Delightful illustrations and great life lessons make this book a true treasures.
3. Home by Carson Ellis Home is a wonderful visual story about the definition of just that, home. Be it a nest, an apartment, a pasture or wigwams or boats, this book celebrates how and where all beings live. The illustrations soar above my bar and the diversity of places keep you guessing and the little delighted. It’s a winner.
4. I Want My Hat Back by Jon Klassen. If you’re looking for a book that will crack you up virtually every time you read it, I Want My Hat Back is certainly one. The humor is most definitely adult, but the illustrations keep the kiddos engaged. They might not get the joke in the end, but that almost makes it more fun. This one is also short. Always a bonus when wine is calling. (am I bad mom??)
5. Iggy Peck Architect by Andrea Beaty and David Roberts. If books that rhyme start to make you crazy after a while, Iggy Peck will save you. While written in verse, the story of a little boy who falls in love with architecture is witty, entertaining, and truly fun to read. You’ll love the pictures, you’ll love the message. There are also sister books, Ada Twist Scientist, and Rosie Revere Engineer are equally great.
6. I’d Know You Anywhere My Love by Nancy Tillman. This story is about a mother’s love for her children, but told through eyes of a child playing make believe. If your little loves animals this is a perfect book. It communicates a monther’s devotion while also empowering the child to use their imagination. It also introduces uncommon animals like the Blue Footed Booby. I just adore it.
7. We Found a Hat by Jon Klassen. This is the only book on my list from the same author that I mentioned before. The language in these books is so simple (would be good for early readers). The illustrations are a crack up. And there’s another wonderfully adult joke at the end. It’s a gem.
8. The Wonderful Things You Will Be by Emily Winfeld Martin. This is another uplifting little tale about parents’ love for their children. I love the modern, dare I say hipster-esque illustrations. There are great messages for littles about caring, empathy, creativity and joy. There’s a fun little flip out section that makes my little guy say wow. It’s got all the pieces you need for a book both they and you’ll love.
I’m so excited to be raising a little reader. There is nothing more satisfying then seeing my little plop down and pick up a book all on his own. Or recite snippets of the books we read frequently. Books truly do open a child’s mind, inspire, teach and entertain.
I can’t wait to add even more to my little guy’s library with all the other Mamas’ recommendations! Check them out below.
The Refined Woman / Ave Styles / Sacramento Street / The Life Styled / The Effortless Chic / Freutcake / Sarah Sherman Samuel
For our entire Real Talk / Real Moms archive CLICK HERE.
Medicare is one of the largest government programs, and it helps provide health insurance coverage to millions of seniors across the nation. If you’re enrolled in Parts A & B, you may assume that you have all of the protection that you need.
If you have original Medicare coverage, there are plenty of gaps that the program doesn’t cover. Those left over expenses could leave you with a massive amount of bills and other debts. Every year, health care costs continue to rise, and there is nothing that you can do to stop the rising costs, but there are a few ways that you can protect yourself from those massive fees. One of the best ways to guard your savings is to purchase a Medicare supplement plan.
What is a Medicare Supplement Plan?
Medicare Supplemental Plans are sold by private insurance companies across the nation, and their purpose is to work with your traditional Medicare coverage to fill in the gaps left behind by Medicare Parts A & B. Unlike a Medicare Advantage policy, Medigap plans don’t replace your regular coverage and you will still have to pay the premiums or your original plan as well as the premiums for your Medigap coverage.
There are ten different plans that you can choose from, and all of them are going to offer different coverage or pay for various portions of expenses. They are denoted by a letter of the alphabet, A through N. Some plans are more basic, like Plan A, while plan f is the most comprehensive of any of the medigap plans. The smaller plans, are going to be more affordable, and it’s important that you choose a plan that’s going to work best for you.
These Medigap plans are standardized by the government, which means that regardless of which company that you choose, the coverage is going to be identical. The only difference between companies is any additional benefits and the price of the premiums. If you want to save money, it’s important that you compare dozens of companies before you decide which one is going to work best for you.
Medicare Supplemental Plan M
Now that you have a basic understanding of Medigap policies, let’s look specifically at Plan M. Plan M is a more comprehensive policy, but there are still a few gaps that the plan doesn’t cover. It’s vital that you understand all of your options when you’re shopping for supplemental protection. If you’ve done some other research, you’ll notice that Plan M is almost identical to Plan D, minus a few exceptions.
Your Medigap Plan M will pay for two specific parts of Medicare Part A, the hospice care coinsurance payment or co-payments and the Part A hospital coinsurance and hospital costs for an extra 365 days after your traditional coverage have expired. Both of these coverage categories could result in massive bills depending on your situation.
For example, if you were to require an extended stay in a hospital, you could rack up a serious bill. If you didn’t have Medigap coverage, you would be responsible for hospital fees worth thousands and thousands of dollars. The longer that you’re in the hospital, the bigger that bill is going to be. Your supplemental coverage will ensure that you aren’t stuck with a mountain of debt after you leave the hospital.
Medigap Plan M also coverage Part B copayment or coinsurance. Every time that you go to the doctor or get a service that is covered by Part B, you will still be required to pay a small copayment. In most cases, this is a relatively small expense, but if you’re frequently going to the doctor or hospital, it can quickly add up. With a Medigap Plan M, all of all of those co-payments will be taken care of.
Additionally, you’ll also have the first three pints of blood for any procedure paid for. If you ever have surgery or are involved in an incident in which you need blood, you won’t have to pay for it yourself. It’s important that you get all the protection that you may need, and pints of blood could be one of the dozens of expenses that you may run into.
One of the unique coverages of Plan M is that it will pay 50% of Part A deductible. With your traditional Medicare coverage, you’ll have to meet the deductible before the program starts paying for anything. Once you’ve reached the threshold, then the coverage will kick in and they will start paying for their expense categories. With a Plan M, half of that deductible will be paid for you.
If you plan on doing a lot of overseas traveling in your retirement, then one coverage category that you should take note of is the foreign travel emergency coverage. With your Plan M coverage, you will have 80% of any foreign travel emergency coverage. You traditional Medicare plan is not going to pay for any of those bills, but without supplemental protection, those hospital bills can ruin your vacation.
While Plan M pays for a lot of the holes left behind, there are a few expenses that it doesn’t cover, and the most notable one is Part B excess charges. Whenever you receive any medical services, there is a pre-determined amount that Medicare is going to pay. Legally, the doctor or hospital can charge 15% more than that set amount. Every dollar above that limit is considered excess charges, and with a Plan M, you would be responsible for paying for them out-of-pocket.
Picking the Best Plan for You
All of the ten plans are excellent options for supplemental coverage, but how are you supposed to decide which one is best for you? There are a couple of different factors that you should consider to ensure that you’re getting the best health care protection for you.
The first thing that you should look at is your budget. Your supplemental coverage should give you the protection that you need to ensure that your finances aren’t drained because of health care bills, but your plan shouldn’t break your bank every month either. Before you apply for any Medigap plan, take a long and hard look at how much money you can spend on your supplemental insurance.
The next thing that you should consider is your health and family history. You can’t predict the future, but you can make an educated guess. The purpose of your Medigap policy is to ensure that you get the health care services that you need without draining your savings account. If you’re in excellent health and you have a spotless family history, then you can take the risk on purchasing a smaller policy that leaves more coverage gaps. On the other hand, if you have several red flags on your medical record, then you will need to consider purchasing a more encompassing plan that fills in all of the gaps.
Enrolling in a Medigap Plan M
Once you’ve decided which plan that you’re going to buy, it’s important that you understand everything about enrolling in these plans. First of all, purchasing one of these plans is very simple. It’s just like purchasing any other type of plan. An experienced agent can walk you through the process and ensure that everything is handled correctly. What’s more important is WHEN you enroll in your plan.
The best time to purchase one of these policies is during your Medigap Open Enrollment period. This is a six-month opportunity that begins the month that you turn 65. During this time, the insurance company can’t decline your application, regardless of your health or any medical problems that you may have. If you’re in very poor health, then this might be your only change to get supplemental coverage.
Additionally, during this time, the insurance company will not be able to increase your rates because of your health. Regardless of any condition that you have, you’re going to get their lowest rates. Once you’re outside of the open enrollment date, your application will have to go through all of the medical underwriting and hoops, and they could raise your premiums based on your health. If you want to save money, it’s vital that you enroll during this time.
Questions or Concerns?
I know that shopping for Medigap coverage can be confusing. I hope this post gave you all of the information that you need to make an educated decision about your health care insurance. If you have any questions about supplemental insurance plans, feel free to check out my other posts or contact me. The older that we get, the more that we are going to spend on health care, but don’t let those bills turn your retirement dream into a retirement nightmare.
If you’ve paid attention to the news in the past decade, you know that health care is almost always the center of attention. Congress is always looking for ways to improve health care, which means there is constantly changes to health care and Medicare laws. That makes it difficult to keep up with and ensure that you’ve got the best coverage available.
Health care costs and medical bills continue to go up every year. There is nothing that you can do to stop them from getting more and more expensive. If you’re enrolled in Medicare, you might assume that you will have all the protection that you need, but that isn’t true. If you have traditional Medicare parts A and B, then there are a dozen different expense categories that your Medicare coverage is not going to pay for.
One of the best ways to protect yourself from those massive hospital bills is to purchase additional insurance coverage through a Medicare Supplement Plan.
What is a Medicare Supplement Plan?
Before we look at the specifics of Medicare Supplement Plan L (also called Medigap Plan L), looks take a general look at what these plans are how they operate. These policies are sold by private insurance companies, and it works to fill in the gaps that are left behind by the traditional Medicare coverage. There are ten different plans that you can choose from, and all of them are going to provide different coverage or portions of coverage.
All of the plans are denoted by a letter of the alphabet, from A to N. Some plans are going to provide basic coverage like Plan A, while others are going to offer much more comprehensive coverage, like Plan G and Plan F. The smaller policies are going to be much more affordable than the plans that fill in more of the coverage holes. It’s important that you pick the plan that’s going to work best for you.
One important thing to take note of is that Medigap plans are standardized by the government. Regardless of which company that you purchase the supplemental plan form, they are required to provide the exact same coverage. The only difference between companies is any additional benefits and how much you’ll pay in premiums.
Medigap Plan L
Now that we’ve looked at the basics of Medigap plans, we can look at the specific coverage of the Plan L. Plan L is one of the most unique supplemental plans that you can purchase. Unlike some plans that cover whole portions of expense categories, Plan L covers portions of the majority of expenses.
Before we look at what Plan L covers, you should know that Plan L is one of the most basic policies, which means that it tends to be cheaper than some of the other options. If you’re looking to save money on your additional protection, then a Plan L could be an excellent choice for you.
With Plan L, you will get full coverage for the Medicare Part A coinsurance and hospital costs for an additional 365 days after your traditional Medicare coverage has expired. If you’ve ever had to stay in the hospital for a night or two, you know how expensive it can be. With traditional Medicare, you will get 60 days of $0 coinsurance, after that it’s $329 coinsurance per day for an additional 30 days, and after that, it’s $658 until the end of that benefit period. You don’t have to be excellent at math to realize that you could rack up some serious medical bills if you’re stuck in the hospital. Having additional coverage will ensure that you aren’t responsible for huge hospital bills that could drain your bank account.
Aside from the hospital bills, you’ll also get 75% five other categories. You will get three-fourths coverage for Part A hospice care coinsurance or copayments. Depending on the hospice care coverage that you receive, it could end up being a large bill, but thanks to your Medigap coverage, you won’t have to pay for all of those bills out-of-pockets.
You will also have 75% protection for the Medicare Part A deductible. The deductible can change every year, but for 2017 it’s $1,316. You are required to meet that deductible before your Medicare coverage kicks in. With your Medigap policy, it’s going to help pay for some of that deductible.
The last three coverage categories are the Part B coinsurance/copayment, the first three pints of blood used for any medical procedure, and the skilled nursing facility care coinsurance. You will get 75% coverage for all of these categories.
Unlike other Medigap policies, Plan L coverage has a maximum out-of-pocket limit. Once you reach that point, you will start receiving 100% coverage for all of the categories. Plan L is one of the two plans that have an out-of-pocket limit, which is $2,560. This is a nice advantage that other plans don’t have.
Choosing the Plan Best for You
Trying to decide between the ten plans can be confusing. It’s vital that you make the best decision for your health care needs. There are a couple of key areas that you will need to look at to ensure that you’re getting the best plan for you.
The first area that you should consider is your finances. You want to make sure that you can comfortably afford the additional coverage that you apply for. The goal of your Medigap plan is to protect your finances to ensure that it isn’t drained from medical expenses, but it shouldn’t break your bank every month. Look at your budget to decide how much you can spend every month on that supplemental health care coverage.
The next factor that you should look at is your health. The purpose of your Medigap plan is to ensure that you’re getting the health care attention that you need without draining your retirement savings account. If you’re in excellent health and you don’t have any serious health complication, then you can consider purchasing a smaller policy that doesn’t fill in all of the gaps. These plans are going to be much more affordable than other options. On the other hand, if you have several health problems, then you should consider purchasing a more comprehensive plan that gives you all the additional coverage that you need.
Enrolling in a Medigap Plan
Once you’ve decided which plan is going to work best for you, Plan L or otherwise, you need to decide when you’re going to enroll in your policy. Purchasing one of these supplemental insurance plans is easy. All you have to do is contact a licensed Medigap insurance agent, and they can walk you through the process.
What’s more important of which plan that you buy, WHEN you buy the plan is going to make a huge impact on your Medigap coverage. It’s important that you take advantage of your Medigap Open Enrollment Period. This is a six-month window that begins the month that you turn 65. During this time, the insurance company can’t reject your application, regardless of your health or any pre-existing conditions that you have. If you’re in poor health, this could be your only chance for getting supplemental insurance protection.
Additionally, during the open enrollment period, the insurance company can’t increase your premiums, even if you have several health problems. After the six-month window has closed, your application will be treated like any other application, which means that they will be allowed your raise your premiums based on your health. Taking advantage of the open enrollment period can save you thousands of dollars every year. If you’ve already missed your time frame, don’t’ worry, there is still a good chance to get supplemental coverage at an affordable price.
Questions about Medigap Coverage?
I know that getting supplemental Medicare coverage can be difficult, but it’s one of the most important purchases that you’ll ever make. The older that you get, the more that you’re going to spend on health care. Depending on your health, you could spend hundreds of thousands of dollars, but that’s where your Medigap plan will come in.
If you have any questions about Medigap coverage or you need assistance in deciding which plan is going to work for you, please feel free to contact an experienced agent or me today. Additionally, you can check out my other posts about the Medigap options. I’ve outlined each of the options to give you the information that you need to pick the perfect policy.