A Medicare Supplement-The Best Decision?
Does it matter? Is it worth the cost? Do I have a better alternative? When I meet with my Medicare clients these are some the questions they ask regarding the need for a Medicare Supplement. To help them understand the need and the cost I need to first address the what ifs of the world.
Original Medicare requires you pay deductibles and copayments. Medicare Part B requires you to pay 20% of the Medicare billed charge. With a traditional individual insurance policy or a group medical insurance policy your expense is capped at a “maximum out of pocket”. For more clarification and information on the cost for medical care you would experience with Medicare please go to www.medicare.com.
For most people enrolling in Original Medicare means the cost of their insurance will decrease and the benefits will be enhanced when compared to their previous individual health insurance or group insurance policy if they purchase a Medicare Supplement or what is commonly referred to as a Medigap Policy. A Medicare Supplement Insurance Policy is a health insurance policy sold by private insurance companies which can help pay the health care cost that Original Medicare does not cover like coinsurance, copayments or deductibles.
“Does it matter”?
If one wants to experience the “golden years” financially secure in knowing their medical cost is limited, it does matter. A Medicare Supplement will greatly limit the actual dollars you will spend on your medical care.
“Is it worth the cost?”
The monthly premium for a Medicare Supplement varies as it is based on several factors such as your age, zip code and whether or not you smoke. But for illustration purposes, you could probably purchase a Medicare Supplement F for about $130/month. (Check with an independent insurance broker to determine the exact monthly cost for your part of the country.) Supplement F will pay 100% of any Medicare billed charge not paid by Medicare. This includes the copayments, co-insurance and deductibles. With Supplement F you have capped your medical cost at $130/month.
“Do I have a better alternative?”
You do have the opportunity to enroll in a Medicare Advantage Plan. A Medicare Advantage Plan can be purchased in lieu of a Medicare Supplement. However, a Medicare Advantage plan may have deductibles, copayments and coinsurance amounts. It is important to compare the cost and benefit of a Medicare Supplement to a Medicare Advantage plan.
To assist you in processing decisions concerning Medicare we encourage you to connect with a Medicare specialist that is an independent insurance broker. We at the Medigap Pro would greatly appreciate the opportunity to assist you with Medicare. Please visit our website atwww.medigappro.com or contact us at 1-800-535-8016.