As the weather cools down, the roads are heating up with out-of-state plates and flocks of Snowbirds. The term “Snowbird” is a nickname given to Northerners who migrate to warmer states during wintertime. Splitting time between multiple states can be tricky, especially when dealing with insurance. This prompts the question, “Which Medicare plan works best for Snowbirds?”

Snowbirds tend to lean towards flexible coverage that works across state lines. Since there is no one-size-fits-all in insurance, there are several factors to consider if you plan on being a Snowbird into your Medicare years. Let’s break down the most common plan options and how they work.

Original Medicare (Part A & Part B)

For those who don’t have employer, union, or other private insurance as an option, Original Medicare is their starting point. Original Medicare, which consists of Part A Hospital and Part B Medical insurance, is administered by the Social Security Administration (or the Railroad Retirement Board). Most people receive Part A premium-free and pay a monthly fee for Part B. In the year 2024, the standard monthly Part B premium is $174.70, but this is subject to change each year.

Neither Part A nor Part B have a network, so you can use this coverage nationwide with any provider who accepts Medicare. However, Original Medicare does not cover everything, so most people pick up additional coverage to lower their financial exposure.

Medicare Supplement Plans (Medigap)

Medicare Supplement plans work alongside Original Medicare to fill in the “gaps” that are left uncovered; this is why Medicare Supplement plans are also known as Medigap plans. Supplement plans are portable, so you can take your coverage with you, even if you make a permanent move across the country. These plans are offered by private insurance companies and often have a premium that ranges from about $60-$200+ per month, depending on the plan you choose.

Medicare Supplement Plans pay for services not covered by Original Medicare such as hospital and medical deductibles, copays, and coinsurances. The most comprehensive Supplement plan for new beneficiaries is Plan G, which covers all Medicare approved expenses besides the annual Part B deductible ($240 in year 2024).

Prescription Drug Plans (Part D)

Neither Original Medicare nor Medicare Supplement Plans cover prescription drugs, but drug coverage can be purchased through a stand-alone Prescription Drug Plan, also known as Medicare Part D. Prescription Drug plans are offered through private insurers and must meet minimum coverage standards set by Medicare. However, premiums, deductibles, copays and covered drugs vary from plan to plan.

Your drug plan options are limited to the plans available where you reside for at least half the year, aka, your residential address. While you may keep your Prescription Drug Plan while traveling, keep in mind that if you make a permanent move, you must select a new drug plan in your new area. Also, you may have higher copays while traveling if you use a standard pharmacy versus a preferred one.

Medicare Advantage Plans (Part C)

If paying a Medigap premium on top of a drug plan premium is out of your budget, a Medicare Advantage Plan may be worth looking at. Medicare Advantage Plans replace Original Medicare with an “all-in-one” plan that provides hospital, medical, and even prescription drug coverage, under one plan starting as low as $0 per month.

Medicare Advantage plan premiums, deductibles, copays etc. vary across plans. Advantage plans are also offered by private insurance companies, but they operate off a network, like an HMO or PPO. While HMO plans restrict you to only in-network providers, PPO plans allow you to go in and out of network for care. Many plans now have travel coverage that allows you to receive care from providers nationwide- but each plan has different rules. Be sure to check the plan’s travel benefit rules before enrolling.

Other Considerations

• You can either choose a Medicare Supplement plan to work with Original Medicare, or a Medicare Advantage Plan to replace Original Medicare- but not both.
• Whether you choose a Medicare Supplement Plan or a Medicare Advantage Plan, you’ll still be required to pay your Part B premium each month.
• Supplement plans are standardized in most states- this means that each plan covers the same core benefits regardless of the insurer.
• Medicare Advantage plans are NOT standardized; therefore, you may experience a significant change in benefits if you move to an area with less Advantage plan options.
• Advantage plans are subject to change each year. If you have doctors who are important to you, reconfirm they will accept this coverage each year.
• Medicare Supplement plan premiums may increase each year due to age, inflation, or other factors.
• Once you are no longer new to Medicare, you can be medically underwritten for new Supplement coverage. If you have existing medical conditions, you may be denied a new Supplement policy unless you have a Guaranteed Issue Right or other exception.

Selecting the right coverage to fit your new Snowbird lifestyle is a big task, but keeping these points in mind will help you sort out your options. Medicare can be complicated, but it shouldn’t stop you from spreading your wings! Our team of Medicare Advisors are collectively licensed in all 50 states to help you wherever your nest may be.

Call 1-855-611-4856 to speak with one today or request a quote below!