Retirees, learn your options for health care A buying guide to right insurance

Patricia Anstett

Jul. 16, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Salaried General Motors Corp. (NYSE:GM) retirees face some tough decisions with a Jan. 1 deadline to buy their own health insurance.

If you are in that group, here are some things you need to know:

--Medicare is a health insurance plan that covers inpatient hospital care and some other services. But it doesn't provide coverage for doctor visits or prescription drugs. For that coverage, you must consider Supplemental Medicare, Medicare Part B, Medicare Advantage and Part D or prescription coverage.

--Consult an insurance broker that sells the greatest number of health plans, rather than just one or two companies. You can find insurance brokers in the phone book under that title. To check on what policies a broker sells, go to www.dleg.state.mi.us/fis/ind_srch/ins_agnt/insurance_agent_criteria.asp.

--Compare rates on your own at the Medicare Web site, www.medicare.gov. You also can get help sorting through Medicare options through your county's Area Office on Aging. To find the one closest to you, call 517-886-1029.

--If you have a prior health problem, you may want to act quickly because three months after your GM benefits end, you will no longer be eligible for Supplemental Medicare coverage offered by most companies.

Blue Cross Blue Shield of Michigan must accept you for Supplemental Medicare coverage, but it may be costlier and may limit you to providers in a smaller region. Medicare Advantage plans, which offer coverage for doctor visits and prescriptions, also must accept people regardless of their prior health problems. But they may cost much more. You have until March 1 to sign up for a Medicare Advantage plan.

--If you are married to someone younger than 65, you will need two insurance plans. Medicare plans won't cover a younger spouse.

--People who travel extensively, own homes in other states or visit children for extended periods elsewhere need Medicare coverage with the widest hospital and doctor networks. Many health insurance plans limit coverage to just part of a state. Some providers limit coverage in other states to emergency and urgent-care visits.

--Don't fall for hard-sell tactics. Compare plans; get answers to your questions in writing.

--When looking at a plan that offers some routine and preventive care, find out answers to questions like: What will my out-of-pocket costs be for a doctor visit, a medical service or prescriptions? How many doctor visits are you allowed per month, per quarter, per year and per family?

--Find out your maximum out-of-pocket costs for a major operation.

--Check a company's complaint ratio. That's a good gauge of whether other policyholders are dissatisfied with a plan. You can find listings on the Web site of Michigan's Office of Financial and Insurance Services. Go to www.michigan.gov/dleg, click on Financial and Insurance Regulation, then Consumer Services, then Insurance Company Complaint Ratios.

Contact PATRICIA ANSTETT at 313-222-5021 or panstett@freepress.com.

Newstex ID: KRTB-0048-26698895