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Are you missing out? Why commercials are linking zip codes to Medicare and Social Security benefits

Just like any healthcare plan, your zip code will determine which facilities you're covered to go to, but money back to Social Security comes with high deductibles.

GREENSBORO, N.C. — What does your zip code have to do with your Medicare health benefit plan? The commercials are everywhere, claiming you can save money depending on your zip code. So, what gives?

“You have to understand these are third-party marketers and they're marketing plans. They'll have plans of all zip codes and they'll look yours up and see what's in that area,” said Steve Edmonds, of Alliance Insurance Services.

The zip code is important because if you're here in Greensboro, your plan is probably going to be with Cone Health, and they have certain rates. If you're here in Winston-Salem, your plan will be with Atrium Wake or Novant, and they have certain rates. There's no magic to it.

But here's the thing, the commercials will try to sell you on a Medicare Advantage Plan, with the promise you can get more money back in your Social Security check. The promise is true, but you need to know what else comes with that Advantage plan.

HOW AN ADVANTAGE PLAN WORKS

With a regular Medicare plan, you get your Social Security check every month and an amount is deducted to pay for Medicare.

If you choose a Medicare Advantage Plan, money comes out of your check for the standard medicare amount, and then Medicare sends that money to the insurance company you have your plan with.

If you have a PREMIUM REDUCTION BENEFIT, then the insurance company sends some of that money back to your Social Security check. This sounds good, but it comes with changes to your out-of-pocket deductible.

"For example, the regular plans have an out-of-pocket of $3,600 but when you sign up for one of these programs, it's not unusual to see these go up to $7,000 or $8,000 or $9000, " said Edmonds. 

Medicare enrollment ends on December 7, 2022.

    

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