That's because in the past, the government has overpaid HMOs in some areas, and the HMOs have been able to offer extra benefits. Some plans, however, offer a better deal than others. With a supplemental policy, seniors get fewer benefits than they have paid for, mainly because insurers are not able to subsidize coverage with overpayments from the government. Be prepared for change. An HMO that is a good deal today may be a poor one a few months from now.
Benefits can and do disappear.
Shop several insurance carriers. We found huge price differences among companies offering the same plan in a particular area. Beware of attained-age policies. They may seem like bargains now, but their premiums rise steeply as policyholders age. Consider Medicare Select policies, which may be a good compromise between managed care and a supplemental policy.