Seniors offered tips on supplemental Medicare insurance

Monday, Sept. 11, 2000 | 10:53 a.m.

CARSON CITY -- Senior citizens can save hundreds of dollars by shopping around before they buy Medicare supplemental insurance policies, the state Insurance Division says.

For instance, a company called Central Benefits offers a "basic benefits" supplemental policy to a person 65 years old at an annual price of $446. At the other end, American Republic Insurance Co. charges $1,004 for the same basic benefits package.

Basic benefits cover such things as hospitalization for up to one year after Medicare payments are reduced or expire. Medicare reduces payments after 90 days of hospitalization and ends payments after a year.

Basic supplemental policies also pick up the 20 percent of medical costs not paid by Medicare, Tom Canfield of the insurance division said.

This information is contained in a free publication by the insurance division called "Medicare Supplement Insurance Premium Comparison Guide." The booklets are available at the insurance offices in Las Vegas in the Bradley Building, 2501 E. Sahara Ave., and in Carson City at 788 Fairview Drive or from the state Division of Aging Services.

It compares the pricing policies of 26 insurance companies.

Insurance Commissioner Alice Molasky-Arman said Friday that 225,718 Nevadans were eligible for Medicare as of September 1998. But Medicare does not pay for every medical expense, and that's why many people purchase supplemental insurance to fill the gap.

Companies are authorized to offer 10 different plans, each with stepped-up benefits at a higher price. But the plans all offer the same benefits, no matter which company sells them, the division said.

For instance, one plan offers the basic benefits, plus co-insurance for skilled nursing care; additional hospital coverage after Medicare payments end; coverage for medical care in an emergency in a foreign country; and a basic prescription drugs policy with a limit of $1,250.

That policy runs from a low of $1,716 a year from the GE Life and Annuity Assurance Co. to a high of $2,280 by Equitable Life and Casualty Insurance Co.

"Compare before you buy," Molasky-Arman advised seniors. "Shop around and talk to several agents and companies before making a decision.

"Don't switch policies just to get a lower price. Premiums can change and a policy may not stay cheaper than the old one."

She said seniors should also consider such things as the claims handling by a company and its reputation for service.