Navigating Medicare Supplement Insurance: Tips for Choosing the Right Plan

Getting ready to retire can be a stressful time. As you get closer to your last day of work, you might weigh every decision and hope it was the right choice. An important step of the journey to retirement is health insurance coverage. Something that has been a long time coming for the Larson family.

"We're shooting for next spring. Both of us just turned 65 the past two months. We've been talking about it for quite a while for a few years now, and it's going to be official and it's a little scary," said Tammy Larson.

The new norm of retired life can be a little daunting, but Tammy and Lydell have done their homework. Not only are their financial plans in order, so are their health plans. They've spent the better part of the past year shopping for the right Medicare Supplement plan.

Know Your Plan Options and Sign-Up Deadlines

"I know a lot of people don't really plan ahead, they just retire and suddenly, oh, you know, we're just going to survive. But we really kind of planned out our budget, we looked at all of the expenses that we have per month and per year and tried to make sure that we're ready for it and that we can afford it. So I think we're in pretty good shape," said Larson.

In terms of preparation, the Larsons are outliers, and it's a mistake many Americans make.

"One of the largest mistakes we see is not allowing yourself enough time to educate yourself. Not only from a product standpoint but also from a signing up for Medicare standpoint. If you don't do that and curtail it too long, you end up having to make a quick decision and maybe one that you don't fully understand the coverage that you purchase," said Brad Meyer, the Director of Consumer Sales for Avera Health Plans.

"After seeing how much Medicare pays, when you look at exactly what they cover and what they don't cover, it's like, this could be a lot of money," said Larson.

Medicare Supplement Covers Out-of-Pocket Expenses Medicare Doesn't

"Which is why Medicare Supplement insurance was designed. It's designed to cover those out-of-pocket expenses that Medicare doesn't cover and it fills in the gap to cover those charges," said Meyer.

"Just knowing the possibilities that could happen as you age and get towards the end of your life, we wanted to feel a little bit more confident that we have coverage for a lot of the medical issues that could happen as we get older," said Larson.

Tammy made sure to shop around and compare different plans. She also asked a lot of questions to insurance agents, as well as retired friends and family, to get the best understanding and choose the right plan. Something that Meyer recommends.

"The other thing is to make sure that your agent is familiar with you. In Tammy's case, they understand their individual situation and needs. Medicare no question, this is health care, it's a personal decision and it's one that they need to understand individually what kind of health care needs that they're looking for," said Meyer.

Consider Added Services Beyond Covered Care

"Our Avera Health Plans, the policy that we selected also had a few perks to it. Like the Planet Heart perk, which both of us have been to before. Also being able to have a complete yearly physical that's paid for. I mean, we're lucky right now. We're pretty healthy people, for the most part, but you never know what lies ahead. So it was a really good fit for us," said Larson.

With their plans in place for spring, Tammy can now focus on the more important things, like just being Grandma.

"Well, I imagine we're still going to continue to chase the kids around and do their things and help our kids out with their kids, but maybe a little bit of traveling. Still have some of the United States to see, so we might do that. It's kind of up in the air, but we'll see what happens!" said Larson.

Open Enrollment for Medicare Supplement Plans is underway and runs through Dec. 7, 2024. Plans and coverage may vary between members.