Sky Insurance

Yes, it is true. Some medicare supplement policies can only be purchased with a membership in the organization's association. One of the largest organizations raised their rates to $16 on February 20, 2009. Not a lot of money in the grand scheme of things, but you'll have to figure that cost into what you actually pay to buy their medicare supplement policy.

These memberships can have their benefits. They're not all expense. After you've met the initial criteria (usually just being a certain age and paying your dues), you could enjoy such varied benefits as discounts, magazine subscription, updates and information on Medicare and Social Security.

An additional benefit to one of the most popular memberships is that it also covers another individual living in the same household as you. That's normally a husband and wife relationship, but exceptions can be requested in non-traditional situations like mother/daughter, sisters, unmarried partners, etc. When you split the cost up between two different people, that certainly helps with the overall expense.

To enroll in their medicare supplement insurance plan, the applicant usually has to be a member or live in the same household as an existing member. Most of the time, application to the organization's membership program can be made at the time of application for insurance. Dues are normally collected by check at your time of enrollment. Unfortunately, dues are generally not deductible for income tax purposes.

The question I'm often asked about these memberships is, "Michael, is it worth it?" Well, that's a question that only you can answer. These memberships do provide real benefits, but I generally recommend that my clients make a decision to purchase their medicare supplement insurance based purely on the plan type and overall financial strength rating of the insurance company. Check with your local insurance agent for plan details and financial ratings.