Health Insurance Compatible With Medicare

Starting Medicare can seem a bit complicated, especially if you have other insurance coverage. Should you keep your other health insurance? Should you get Parts A and B of Medicare? What about prescriptions? Who pays first? The questions can seem endless. The good news, though, is that most health insurance is compatible with Medicare, and Medicare may reduce your out-of-pocket costs.

Group Plans

• As the age to start Social Security increases, more and more of us are working past the age of 65. Medicare, though, still starts at 65. If you have Medicare and have health insurance from a current employer, Medicare becomes your secondary insurance, which my alleviate some out-of-pocket costs. You may also want to delay enrolling in Part B, as it has an additional premium. At retirement, if you continue your group coverage it becomes secondary. If you lose your group coverage when you retire, or for any other reason, you have an eight-month period to enroll into Part B without any penalty for delaying. You also have 63 days to open enroll into a Medicare Supplement plan, or Medigap.

Medicare Supplements

• Medicare is made up of two main parts: Part A, which covers hospitalization, some home health care and hospice, and Part B, which covers doctor visits, lab tests and durable medical equipment. Medigaps, or Medicare Supplements, are health insurance plans designed and regulated by the federal government specifically to be compatible with Medicare Parts A and B and fill the out-of-pocket gaps. Plans are labeled A-G and K-N, and the plans have the same benefits no matter what company you purchase them from.

Medicare Advantage Plans

• Medicare Advantage Plans are also known as Part C of Medicare, and they not only pay first, they actually pay instead of Medicare. These plans are usually health maintenance organizations (HMOs) or preferred provider organizations (PPOs) which means you have a primary care physician that gives you a referral when you need to see a specialist. These plans generally have a lower monthly premium than Medicare Supplements, but may have higher out-of-pocket costs due to co-pays and deductibles. Medicare Advantage plans frequently include your prescription coverage.

Other Insurance

• Other types of insurance also work with Medicare. Many people, for example, have both Medicare and Medicaid. Medicare pays first, as federal law prohibits Medicaid from being primary if there is other insurance available. Medicare also works with Veterans Affairs coverage and Tricare (military health insurance), although you may not need Medicare Part B with them. If you aren't sure if you need Part B, call your current plan or coverage for their recommendation.