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Contrary to popular belief, health insurance is not free.
Monthly premiums, copays, and annual deductibles add up quickly—not to mention out-of-pocket costs for prescription drugs.
Navigating Medicare’s complex system alone can be overwhelming. It’s easier to stick to your current plan and hope for the best.
But staying put can mean losing huge savings — possibly thousands of dollars a year.
If you want to explore your health insurance options but don’t know where to start, the network of free federally funded programs can help.
What is the State Health Insurance Assistance Program?
This State Health Insurance Assistance Program, or SHIP, is a national network of trained volunteers who provide one-on-one help, counseling and education to Medicare beneficiaries, their families and caregivers.
SHIP was created more than 30 years ago under the Omnibus Budget Reconciliation Act of 1990. Each state uses federal grants to administer its own SHIP.
Plans in your state may have slightly different names, such as SHINE in Massachusetts (meeting everyone’s health insurance needs) or SHIBA (statewide health insurance benefit advisors) in Washington and Idaho.
Ship by number
- In 2018, nearly 2.7 million Medicare beneficiaries, their families and caregivers received one-on-one health insurance consultations, including 330,737 adults with disabilities under the age of 65.
- SHIP provided outreach to more than 4.2 million people at public speaking, registration events, health fairs and other community events in 2018.
- There are more than 2,200 local SHIP sites and more than 12,500 team members nationwide.
- SHIP received $65.1 million in federal funding in fiscal 2020 to carry out its mission.
SHIP consultants are certified to provide free, in-depth and personalized health insurance counseling to Medicare beneficiaries.
And since advisors don’t work for insurance companies, their advice is truly impartial.
SHIP volunteers will never try to sell you anything. There are also no income or wealth restrictions. Anyone can use the program for free.
How can a SHIP consultant help me?
SHIP consultants can assist with many health insurance-related needs, including:
- Review your health insurance coverage and prescription drug plan options.
- Assistance programs for low-income people.
- Open registration question.
- Billing issues.
- Navigate late enrollment penalties.
- File an appeal or complaint.
- Medicare supplemental insurance (Medigap), long-term care insurance, and managed care options.
SHIP is available to both new and existing Medicare beneficiaries. Advisors also help adults under the age of 65 who qualify for Medicare due to disability, as well as dual-eligible beneficiaries who are enrolled in both Medicare and Medicaid.
Reviewing your health insurance coverage can save you thousands of dollars
Beneficiaries have an annual opportunity to review and change their health insurance coverage during the open enrollment period from October 15 to December 7 of each year.
Now is a good time to compare plans and make sure you’re not overpaying for your health care.
However, according to a recent report, seven in 10 Medicare beneficiaries did not have a comparison plan during the 2018 open enrollment period. Kaiser Family Foundation.
Rates were even higher among black and Hispanic beneficiaries, 85 and older, and low-income groups.
By 2022, the average Medicare beneficiary will have access to 39 private Medicare Advantage plans — the most options in more than a decade — and an average of 23 Part D drug plans to choose from.
Shopping at least once a year can mean overspending on health insurance, experts say.
“In addition to potentially better meeting their health care needs, reviewing plans annually can help save money because plan costs fluctuate on a regular basis,” said Rebecca Roger, director of the Office of Health Care Information and Counseling at the U.S. Department of Health and Human Services Administration Rebecca Kinney says living for the community.
How much can you really save with SHIP?
A married couple in Ohio hasn’t compared their Part D plans in nine years, Kinney told The Penny Hoarder.
“They will save nearly $4,000 in 2022 by changing their plans as they study options for Ohio ships,” Kinney said. “The wife was almost in tears, she was very happy.”
What else does SHIP do?
SHIP advisors can help you in many ways, whether it’s helping you compare drug plans, screening you for money-saving benefits, or answering enrollment questions.
They can also provide guidance on how to deal with special situations, such as how Medicare interacts with Medicaid, or what happens to your TRICARE coverage when you turn 65.
SHIP typically provides a combination of face-to-face and telephone assistance.
Many SHIPs also host webinars and educational fairs, such as Indiana’s SHIP, which hosted four virtual health insurance events on its Facebook page in September. The public can interact with experts and have their health insurance questions answered in real time.
Ships are heavily reliant on Medicare Plan Finder Tools and other information on the Medicare website to categorize the options available to beneficiaries.
If you want to use the Medicare Plan Finder yourself, volunteers are happy to answer any questions you have along the way. (They can also train you to use the Plan Finder tool.)
Alternatively, with your permission, counselors can log into your MyMedicare.gov account to review your most recent drug claims and determine your most affordable Part D plan options.
Get extra help paying for health insurance with a savings plan
SHIP consultants can also help low-income beneficiaries navigate Medicare Savings Plan, which covers Part B premiums, deductibles, and copays.
and extra help program, which helps significantly reduce the cost of prescription drugs. In 2022, Extra Help enrollees will spend up to $3.95 per generic drug prescription and up to $9.85 per brand-name covered drug.
These savings plans are for beneficiaries who may not be eligible for full Medicaid benefits but still meet certain income restrictions and have difficulty paying for health care.
Medicare savings plans are administered by the states, so a SHIP advisor can provide you with specific eligibility and enrollment requirements in your area.
They can even help you with the application process.
Experts say these small adjustments to Medicare can add hundreds or even thousands of dollars a year to out-of-pocket costs.
How to find your local boat
You can find your SHIP online using SHIP area locator tool. Or you can call the National Internet Hotline at 1-877-839-2675.
You can speak to a representative and make an appointment with an advisor.
Some states may offer in-person counseling, while others only offer phone or online counseling, so check for available counseling in your state.
Rachel Christian is a certified educator in personal finance and senior writer for The Penny Hoarder.
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