Healthcare inflation is affecting some of America’s most hard working individuals, and price increases for Medicare Supplement Insurance are a part of the problem. Over the past ten years, it has become standard practice among insurance companies to increase monthly premiums for both inflation, and age. This semi-annual increase has been a real burden for older Americans as most have seen their healthcare costs increase 50-100%. Furthermore, this comes at a time where many have seen their monthly incomes dwindle.

The Obama administration has proposed a 15% surcharge on Medicare Supplement Plans, which is effectively a 15% increase in monthly premiums. This would be in addition to the already extraordinary normal monthly increases already endured by Medicare recipients. The alternative to paying this 15% surcharge would be staying with original Medicare and absorbing the 20% coinsurance, or purchasing a Medicare Advantage Plan.

Medicare Advantage plans have been a viable alternative for some people, but not all. Many people find their doctors or hospitals do not accept any Medicare advantage plans, which makes them a horrible option. In addition, some people who live in rural areas do not have the option to purchase an advantage plan as there are no offerings in their area. To make matters worse, most people in rural areas have very low incomes, which mean they must make extremely difficult budgeting decisions when determining which Medicare Supplement Plan is best. A 15% surcharge could mean they don’t buy groceries this week.

Fortunately, this 15% surcharge is the small part of a budget proposal that would be up for vote in 2013, and won’t take effect until 2017. The chances of this bill passing are slim to none as the government has had quite a difficult time making important decisions lately. Medicare Supplemental Insurance will continue to be the choice more most people turning 65 as long as the monthly premiums are affordable and physicians and hospitals accept original Medicare.

Many people purchase Medicare supplement plans or an advantage plans, only to realize it does not meet their needs. The plan they purchased is either too expensive, their doctors or hospitals don’t accept the plan, or the lack of benefits makes it difficult to get quality care. The worst part of this horrifying trend is most seniors fail to realize this until after their initial enrollment is over! People who fall victim to lesser plans often look for a way out, and feel they will be turned down by insurance companies offering better, more comprehensive plans. This is quite simply not the case.

Medicare Supplement Plan F is the best plan money can buy, and is considered the Cadillac of all Medicare plans. Medicare counselors, physicians, and insurance brokers all recommend this plan at least 90% of the time and the majority of people buy this plan as a result. So why is this plan so popular? Well, Medicare supplement plan F is so popular because it is so easy to understand. People who purchase Plan F have very little to worry about, because they can visit any doctor or hospital that accepts original Medicare, and they never pay a nickel! This plan has no deductibles, and no co-payments, making it the king of all Medicare Supplement Plans.

Most people believe switching insurance companies will be a serious task. In reality, it is quite easy and almost anyone can do it. The most difficult part is signing your name on a new application and answering a few health questions. Most people find that the process only takes approximately 15 minutes, and they save up to $1000 per year as a result. Every insurance company has a different underwriting process, which means some companies may accept you, while others may not. It is important to speak with a field underwriter or Medicare supplement broker who is knowledgeable about insurance company best practices in order to get a good idea about which companies you should apply with.

California residents have the upper hand. Not only do they have gorgeous weather, and incredible outdoor activities, but they also have a special guaranteed issue period called the “California Birthday Rule”. This rule states that any California resident can switch to any company, with an equal or lesser plan, during the 30 day window that begins on their birthday. During this period they have guaranteed issue, which means they do not need to answer any health questions and their policy will be issued. Furthermore, there is one very well-known company that allows individuals to purchase Medicare supplement Plan F regardless of which type of plan they have currently. This means California residents can upgrade to Plan F, no questions asked, every year on their birthday.

Fortunately, the majority of Medicare recipients over the past 15 years have purchased Medicare Supplement Plan F. However, those who purchased this plan prior to June 1st, 2010 still have the old benefit package. All Medicare Supplement Plans were modernized on that date, and now include a new hospice benefit that many have found very useful. Even people who already have plan F should upgrade to the new modernized plan F. Contact your insurance company or a Medicare supplement broker to find out how.