Should I (We) switch to a Preferred Provider Net-Work Hospital plan to lower our Medicare Supplement premium by 30%?
Client: My wife and I have an opportunity to lower our Medicare Supplement insurance premiums by 30% if we agree to use one of the network hospitals in our service area. We can save more than $1,600 in premium per year, what should we do?
Coach: I just had a call from a client asking the same question. I asked the client, with your current medical condition, is there a possibility that you might need to use a hospital other than the ones listed in your service area? The client said yes. I may be treated by a doctor at a teaching hospital but that hospital is not in the network. So, I asked her, is saving 30% per year in premium more important than retaining the option in your current plan to pick any hospital nationwide that accepts Medicare. Her answer! No, I’d rather have the option to choose.
If you are comfortable with the network providers, and don’t have medical conditions now that would require care in an out of network hospital sometime in the future, than maybe it makes sense, especially if we’re talking about $1,600. But, read the fine print first and make sure what is required if you want to come back to your current plan. Ask questions like, can I return without evidence of insurability etc. Once you’ve done your due diligence, then, I’d make the decision as to whether you’re willing to trade a reduced premium for a limited choice Preferred-Provider hospital net-work plan.
