Can Private Health Plans Reduce My Medicare Benefits?

I am worried that my insurance from work will reduce the benefits Medicare will pay for me and I will have trouble in the future.

It may sound complicated, but it’s really quite simple. When you are on Medicare, Medicare is the primary insurance and always pays first. Therefore, no other insurance will reduce those benefits.

What Are Other Insurance Types?

Basically, there are two types of additional insurance for Medicare recpients, secondary and supplemental. If you are fortunate enough to have a plan that you can carry over to retirement from work, it will probably be at a reduced rate because Medicare will pay first. You have Medicare Part A and Part B and your work plan. First Medicare pays, then your work plan pays what’s left after deductibles have been met. These work plans are generally secondary plans. That means they are their own insurance, and even if something is not covered by Medicare it can still quite possibly be covered by the secondary plan. If you don’t have a plan from work, then you want to consider a supplemental plan to help pay for what Medicare doesn’t. These plans that you purchase from outside insurance companies will only pay for something that Medicare covers. That is, they will pay for what Medicare does not fully cover, but they will not pay for something that is not covered at all by Medicare.

How Do Secondary And Supplemental Insurances Work?

Either one of these insurances will only pay after Medicare has been billed by your health care provider. That means whatever Medicare pays for Joe Blow, Medicare will pay for you. Even if you have the best secondary insurance in the world, Medicare pays first and Medicare benefits are not reduced. No need to worry, your benefits are secure.

Related posts

1. Will Supplemental Insurance Pay For What Medicare Does Not?
2. What Are The Best Medicare Supplemental Plans In Iowa?
3. What Are The Best Medicare Supplemental Plans In Arkansas?
4. When Is Medicare Coverage Primary And Secondary?
5. Does A Medicare Supplemental Plan Replace Original Medicare?

One Response to “Can Private Health Plans Reduce My Medicare Benefits?”

1. group health insurance barrie canada says:

   December 26, 2011 at 9:45 am

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