Category Archives: Medicare Tips

Inpatient Care vs Outpatient Care: Knowing the difference could save you thousands

Outpatient care word cloud

Outpatient vs Inpatient: The difference could save you thousands

So what exactly are these terms, outpatientinpatient, observational care, skilled nursing facility? And how do they affect you? If you have a Medicare Supplement Plan, then possibly by thousands of dollars.

No one wants to think about going to the hospital. But when you’re in the hospital, the last thing on your mind is how you will be billed. Understanding the subtleties ahead of time—of how they admit, treat, and bill Medicare patients—can potentially save you thousands of dollars, especially in long-term care costs. If you or a loved one does need to visit the hospital, you’ll be ready after reading our guide.

Outpatient vs Inpatient at-a-glance

An inpatient is a person who is formally admitted to a healthcare facility, like a hospital or skilled nursing facility. If you have not been formally admitted to the hospital by a doctor, you are not an inpatient. An outpatient is a patient who a doctor treats, who may receive ambulatory care at a hospital, and may even spend the night, but is not formally admitted to that facility. Outpatient and inpatient can look and feel very similar because they both take place in a hospital, but you can ask the doctor who is working with you if you are being formally admitted.

Remember: the key phrase for distinguishing between inpatient and outpatient care is ‘FORMALLY ADMITTED.’

How does observational care (aka hospital outpatient care) fit into this?

Observational services are the hospital outpatient services you get while your doctor decides whether to admit you as a patient or discharge you. That can happen in the emergency room or any other part of the hospital. Observational care can even be overnight and last up to 48 hours (although 24 is more typical, some cases have exceeded 48 hours). Due to medical and technological advances, many more health services are available without a formal hospital stay, and hospital observational services are increasing according to the CDC. For seniors, the distinction is even more pertinent, because observational services are most common among people 65 years and over. Please refer to this publication, page 3 for a few specific examples of how different hospital situations would be covered between Parts A and B.

Will the hospital tell me if I am receiving observational care?

Yes, after 24 hours, as a Medicare patient, you have the right to what is known as a MOON, or Medicare Outpatient Observation Notice. A MOON is a written legal notice that explains if the patient is receiving observational care and the doctor’s reasons for that care. This notice is a written document that also requires an oral explanation by a hospital worker.

With a MOON, you have the right to be informed of the medical and coverage implications of the observational care. This is your chance to get as much clarity of your status from the hospital as you can. Medicare legally requires the hospital to obtain your signature saying that all details have been explained to you, so don’t hesitate to ask every question that you have.

Although you have a right to a MOON after 24 hours, the hospital is not legally bound to give it to you until after 36 hours of observational care has lapsed or upon your release, whichever comes sooner.

Our advice? If you realize that your or your loved one’s stay in the hospital may be a longer visit than expected, keep track of your time, and as your time nears 24 hours, start asking for your MOON to help expedite the progress of your notice. If you anticipate a longer stay, you can advocate to be formally admitted for better coverage. Learn more about MOON.

How does my patient status affect my Medicare charges?

The majority of your charges will be covered in some way with your Medigap plan. When you are an inpatient, Medicare Part A has a $1,340 deductible for all of your hospital and inpatient services for the first 60 days you’re in the hospital (that’s why Medicare refers to Part A as “hospital insurance”). An important distinction: Part B covers 80% of your doctor services, even while formally admitted.

These deductibles and leftover costs are why you have a Medicare Supplement Plan. All Medigap plans cover the Part A deductible, and after paying the Part B deductible, Plans like F and G will cover the other copays and deductibles from Part B. The other Medigap plans vary in how they cover the remaining Part B costs, so refer to your specific plan to understand your coverage. For a further breakdown of the Part A long-term costs, see Medicare and You 2018, page 31.

When you are an outpatient, Part B covers your hospital services and your doctor services after you have met your Part B deductible. Although, because of how Part B functions, you will likely have a copayment for each hospital service, and the amount you pay will vary on the type of Medicare Supplement Plan you have. For the full list of the Part B services and their costs, see pages 35-59 in Medicare and You 2018. You supplement plan will vary in how it covers Part B services, so refer to the specific coverage booklet for your plan.  If you have a Medicare Advantage Plan, your costs will be covered, but will vary with the amount of coinsurance you pay.

So how does Skilled Nursing Facility, or SNF, play in?

This is where the biggest drain on your wallet can come in. Sometimes hospitals transfer you to a skilled nursing facility, or SNF.  Medicare Part A covers 100 days of SNF care, but Part A will only cover it if you have been an inpatient for at least three days and check into a Medicare-approved SNF facility within 30 days. So, if you are expecting skilled nursing facility (SNF) care, you must be keep track of whether or not you are inpatient because three days as an inpatient in a hospital is required before SNF coverage kicks in. This can be confusing because you can spend three consecutive days in a hospital without being considered an inpatient for all three days. So, when you are transferred to a rehabilitation center, and you didn’t reach the three day mark prior to your discharge, you may pay completely out-of-pocket for those SNF costs. Keep an eye out for our upcoming post that gives a more detailed rundown on how Medicare works with skilled nursing facility (SNF) care.

What do I do while I am in the hospital?

Ask questions and look out for yourself. You have a right to have them answered, whether it regards the doctor’s treatment decisions, your status as an inpatient or outpatient, or if Medicare will cover your SNF stay. Remember the golden rule; you are not considered an inpatient nor receiving the financial benefits of an inpatient unless you areformally admitted by a doctor even if you have been in the hospital for a longer stay. If you are not being admitted, ask the hospital for documentation as to the reason. If you are admitted, ask the hospital for documentation on why and when you are formally admitted. Later on, if you feel their decision was in error, you can submit a claim for an appeal.

Finally, bring someone along as your advocate; don’t go to or remain at the hospital alone if you are in the middle of health crisis or treatment. Although you may have your head wrapped around the billing structure now, it can be near impossible to have the wherewithal to apply that knowledge while in the midst of experiencing it. Bring along a trusted family member or friend to be your advocate and handle the line of questioning. And share this article with them so that they are informed of your hospital Medicare needs.

We can help!

Here at Griffin Insurance Solutions, we know that your hospital experience is a unique and individual one that requires expert advice. Our clients trust us and refer us because of availability and willingness to give guidance and advice throughout the year, not just when it’s time to renew. Please call or email with any questions you have while navigating this complex process.

Going to SHIIP? What you need to know


What you need to know before your next visit to SHIIP

In North Carolina, one of your best resources to learn about the basic workings of Medicare is SHIIP, or the Seniors’ Health Insurance Information Program, a non-biased source run by the NC Department of Insurance. But completing your coverage through them may cause some unintended (and unexpected) headaches down the road. Here’s our do’s and don’ts guide for your next conversation or visit with SHIIP.

So, who should visit SHIIP?

If, after researching online, you still feel unsure about how Original Medicare works or how to complete your coverage, SHIIP may be the place to go for your in-person consultation with your local SHIIP “Counselor.” Most Counselors are unlicensed volunteers who have enough training to answer basic questions about Medicare in North Carolina. But, make sure you prepare ahead with all your questions because SHIIP is by-appointment only.

Can I sign up for Medicare with them?

No and yes, but you shouldn’t. Here’s why:

For Parts A and B, no. The only way to enroll in Medicare A and B is either online or at your local Social Security office, and SHIIP directs you to do so.

For Medicare Supplements, they cannot sign you up, but they do offer estimates. Unfortunately, the estimates they give you are not up-to-date and may not be the best you can get. So, although SHIIP gives you an estimate to an appealing plan and may even provide you with a direct phone number of the supplying insurance company, you might miss out on some of the finer points and discounts that an independent licensed agent can help you find, like if you are eligible for a spousal discount. So, you might leave the SHIIP office paying more for your coverage than necessary.

For Prescription Drug Plans, they can assist you with signing up, and their prices are accurate. But we strongly recommend that you don’t enroll with SHIIP because you will need an agent to maintain and adjust your coverage over the coming years. If you enroll in a drug plan without an agent, he or she cannot step in on your behalf with the insurer if/when you later find a problem or need to make any changes, like to cover a new prescription or to switch pharmacies.

For Medicare Advantage Plans, SHIIP can also help you enroll, but, again, given how many moving parts there are in a Medicare Advantage Plan, we wouldn’t advise that you enroll with them. Between the annual changes, the varying prescription coverage, the networks, and the co-pays versus the deductibles, it’s very difficult to find a tailored fit without the expertise of an independent agent and the options he or she can offer.

If you’ve already signed up for a Part D plan or a Medicare Advantage Plan through SHIIP, never fear, you can still re-enroll with an agent at the annual open enrollment time (between Oct 15 and Dec 7th).


SHIIP is a valuable resource for learning about all aspects of Medicare, but when it comes to enrolling, you are best served by finding an independent agency like Griffin Insurance Solutions who can give you unbiased guidance to make the best decision for your Medicare coverage needs. We use quote engines to find the best rates and offer plans from over 15 different insurers to help seniors find the best plans tailored for them every day, and we can do the same for you. Contact us today for an in-person appointment by email or phone at 919-704-6147 or 800-774-1434.




Medicare Advantage vs Medicare Supplements

Feet at a crossroad

Medicare Advantage Plans & Medicare Supplement Plans: What’s the difference?

Given how often we hear this question from clients, we thought it was time to clarify this topic.

First, the most important distinction is to point out that they really can’t be compared as plans, but rather as different paths.

Here’s why. Medicare A and B, or Original Medicare is the coverage you sign up for through Social Security when you turn 65 (for the majority of cases). Everyone signs up for that, and the coverage is fairly standardized: generalized, Part A provides hospital care while Part B covers 80% of a variety of medically necessary services, such as surgeries, doctor visits, screenings, and equipment. (For a complete list, visit here for Part A, and here for Part B).

So the next step is to complete coverage—for the remaining 20% that you must pay for Part B services (there is no out-of-pocket maximum, by the way) and to cover prescription drugs. That’s where the choice between Medicare Advantage plans and Medicare Supplement plans come in.

When considering a Medicare Advantage plan, or a Part C plan, think of the Medicare Advantage (MA) plan company a bit like the trustee of your insurance. You sign up with a government-approved independent company, and they now assume the responsibility of covering you as Original Medicare does. Additionally, you receive coverage for many of the holes in Parts A and B—like an out-of-pocket maximum—at an additional monthly premium. The most common MA plans are Health Maintenance Organization (HMO, as you know them) plans and Preferred Provider Organization (PPO) plans.

If going the way of the Advantage plans is the “trustee” route, think of the Medicare Supplement plans, or Medigap plans, as your insurance “partner” plan route. You keep Original Medicare Parts A and B just as they are under the government’s jurisdiction, but you add on two additional partners—the Medicare Supplement plan to cover the 20% left from Part B and a Part D Prescription Drug plan to cover your prescriptions.

How does the coverage differ?

At a glance, most MA plans are going to have significantly cheaper monthly premiums, and for healthier individuals, that can be an attractive draw. In addition, those plans may include dental, hearing, and vision that would not be available through a Medicare Supplement plan or Original Medicare. But, with that low monthly premium comes higher copays and deductibles than with Medigap plans and often a lot of caveats and restrictions. For example, your policy may leave you with a very narrow list of in-network providers that may not include your doctor or hospital of choice. Another consideration is that MA plans provide prescription drug coverage at their discretion. If you have particular prescription needs that are less common, your policy may not cover it. And, if your MA doesn’t cover your Rx, you cannot purchase an additional Part D plan, as per the regulations. Remember, the Medicare Advantage plan is a closed trust; if some part of coverage is not already included, it can’t be tacked on.

With Medicare Supplement plans route, you have more flexibility to tailor your coverage, but it does usually come with a higher monthly premium than the MA plans. Both paths require a yearly evaluation, but Medigap plans require you to reevaluate two different plans a year (both your Medigap plan and a Part D plan) rather than just one. Since your primary insurance remains under Original Medicare, you don’t have to worry about networks—you can go to any Medicare-participating providers. Just as with the MA plan, your Medigap plan provides out-of-pocket maximum protection when your Medicare-covered expenses run high (like unexpected surgeries or long hospital stays). Medigap plans will not offer dental, vision, and hearing, and your Part D plan needs to be chosen carefully to ensure that all your prescriptions are in fact covered.

So which one is right for me?

As with all things insurance-related, that answer depends on your individual health needs. For very healthy individuals who have very few prescriptions and doctor visits, MA plans may be better because of the lower monthly premiums. Those savings are immediate, and they continue as long as the insured stays healthy and out of the doctor’s office and hospital. Since MA plans have higher copays, frequent appointments and procedures can quickly eat away at what would otherwise your monthly savings. But when only 9% of seniors self-report their health as excellent, Medicare Supplement plans may be the more viable option. Medigap plans usually end up saving you more money on annual basis because of the lower copays.

Both routes require careful consideration, and before you sit down with a licensed insurance agent, it’s important to consider your finances and your healthcare needs. Conduct some research, start perusing plans on your own with Medicare’s Plan Finder tool, and when you meet with an agent, ask every question that is important to you.

Also, directly ask if he or she is an independent agent or if s/he receives benefits from promoting certain plans and paths over others. Don’t settle for an agent who isn’t, because your personal insurance needs should be first and foremost, and not sullied by the enticement of special promotional commissions.

If you have any questions about your Medicare choices, Griffin Insurance Solutions is an independent agency, and we will happily address them and help you find the best plan for you. Contact us today for in-person appointment by email or phone at 919-704-6147 or 800-774-1434.


Part A (Hospital Insurance)

and Part B (Medical Insurance)

(We can help you with this step)

Covers the “gaps” in services from Original Medicare

Private company assumes the coverage for Parts A & B

Will likely cover
prescription drugs*

Covers prescription drugs

Covers additional services

*You cannot add separate
Part D coverage if your Part C Advantage
Plan does not include Part D.