Medicare is for more than America’s seniors. It also covers people under age 65 who have disabilities. Across the country, it can be more difficult for people under age 65 to purchase Medicare Supplement plans, which help cover the out-of-pocket expenses from Medicare Part A and Part B. In most states, insurers do not have to sell Medicare Supplement plans to people under age 65 and can charge them higher premiums if they do.
In New Jersey, legislation was passed to help people under 65 who receive Medicare benefits due to a disability access Medicare Supplement plans.
New Jersey Medicare Supplement Plans for People Younger than 50
Thanks to the legislation that the state put out, people younger than 50 who are enrolled in Medicare due to a disability are able to purchase Medicare Supplement Plan C.
- At least one carrier must offer Medicare Supplement coverage.
- The insurance company must issue coverage to any applicant under age 50, so long as the individual applies for the Medicare Supplement coverage within 6 months following enrollment in Medicare Part B.
- The insurance company must charge individuals under age 50 the same premium for Medicare Supplement Plan C as the carrier charges to those age 65 (rating on the basis of health status, age, or claims is not permitted)/.
- There must be a mechanism to equitably spread losses that the insurance company incurs among all carriers offering health benefits plans in New Jersey.
- The program is overseen by a governing board that includes representatives of various interested parties.
New Jersey Medicare Supplement Plans for People Age 50 to 64
People between the ages of 50 and 64 who are receiving Medicare due to a disability are also entitled to purchase a Medicare Supplement Plan C once they are enrolled in Medicare Plan B.
- Carriers must issue the coverage to any applicant residing in the carrier’s service area, so long as the individual applies for the Medicare Supplement coverage within 6 months following enrollment in Medicare Part B.
- Carriers must rate the plans on the same basis as all other Medicare Supplement plans, and a carrier may not charge rates that are more than what the carrier charges for the same policy issued to an individual aged 65 who becomes eligible for the coverage by reason of age.
- Each calendar year, the carrier must meet a 65% loss ratio for individual policies, or a 75% loss ratio for group policies.
New Jersey Medicare Supplement Plans for People 65 and Older
People age 65 or older may enroll in a Medicare Supplement during the six months after they first enroll in Medicare Part B. There are ten available Medicare Supplement plans that you can purchase. These are lettered A, B, C, D, F, G, K, L, M and N. Plans C and F cover the Part B deductible, and are no longer available to people who became eligible for Medicare after January 1, 2020.
The available carriers for Medicare Supplement plans in New Jersey include AARP-UnitedHealthcare, Aetna, Cigna, Colonial Penn, Horizon Blue Cross Blue Shield of New Jersey, Humana, Lumico, and Royal Arcanum.
Do you have questions about Medicare Supplement plans or need help choosing a plan? Jersey Medicare Solutions is here to guide you.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
