Know Basic Medicare Terms To Reduce Your Coverage Risks
Compare Medicare Insurance plans before choosing supplemental plans and reduce future coverage risks. Basic 101 money wise health options tips: who pays who and what do they pay.
Knowing What Defines A “Payer” and “Coordination of Benefits”
Terms such as “payer” and “coordination of benefits” should become second nature to you the subscriber before signing up for these plans. Payer may refer to each kind of coverage offered while the coordination of benefits may simply refer to which one of your payers gets to pay first.
“Paying Primary” and “Paying Secondary” Defined
Other terms commonly used and needed to be understood when the time comes to compare plans are: paying “primary” and paying “secondary.” A primary payer is the company who pays benefits up to its full limits under the policy. A secondary payer may sometimes mean Medicare paying second and taking up the remaining areas to be covered when the primary payer reaches its policy limits.
Unanticipated Medicare Insurance Details
Further complicating things when a subscriber desires to compare Medicare Insurance plans is when he/she discovers that a secondary payer does not necessarily pay all of the primary uncovered expenses. At other times, there are other cases in which one’s own employer is the secondary payer. In such cases, it may be wise to further compare Medicare Insurance plans and consider enrolling in Medicare Part B.
Furthermore, when it comes times to compare Medicare Insurance plans one needs to be certain to know what paying "first" actually means. Some companies do not pay within the allotted amount of time neither does is really mean the primary payer will pay first at all. Not paying promptly withing 120, usually means Medicare will be contacted by your doctor or hospital.
As stated previously, knowing just some basic terms will go a long way when it comes time to compare plans.