Should you enroll in traditional Medicare, backed by a Medigap insurance policy, or should you enroll in a Medicare HMO?
- If cutting costs is your top priority, sign up for a Medicare HMO.
- Seniors who are planning to relocate in retirement may find that a Medicare HMO is a good choice. You’ll have to find new doctors anyway so you might as well join a network that has been put in place by an HMO.
- Retirees who plan to travel extensively probably should avoid Medicare HMOs. Outside of an HMO’s area, only emergency care is covered. A Medigap policy provides broader coverage.
- A Medicare-Medigap combination also may be preferable if you are particularly concerned about your ability to choose your own doctors.
If you decide to buy a Medigap policy, shop carefully because prices vary widely. Ask your agent to discover the company’s history of rate increases so you can avoid unpleasant surprises in the future.
