Self-preservation is the first goal of life, right? It’s all about staying healthy, being happy, and living longer. What exactly does this mean in relation to a life time of medical costs? It’s beginning to look like the longer we live, the more healthcare expenses we are likely to incur. Supplemental Medicare plans are designed to help pay deductibles and coinsurance for those on Medicare. But are they really worth it? Let’s find out.
What is Expected from Medicare?
First and foremost, we should all know that Medicare doesn’t cover all medical services, and it definitely doesn’t pay 100% of many services in which it does cover. Part A is specifically for home healthcare, hospital, hospice and skilled nursing-care. However, it is required that you meet the $1100 deductible per ailment prior to the initiation of your Part A coverage.
Afterwards, your Part A coverage pays for hospitalization fees acquired during the first 60 days, however, it only covers a portion of the daily expenses beginning immediately (61st day) after the 60 days.
Medicare Part B
Part B covers doctor services as well as services which Part A does not cover. After meeting the annual deductible of $147 (2013), Part B pays 80% of the pre-approved amount by Medicare. You’re only liable for the 20% as well as the amount doctors may charge if the pre-approved amount is exceeded.
Medicare Supplemental Insurance
Supplemental Medicare plans also called Medigap, which offers an additional 10 plans to choose from which cover gaps presented in Medicare. This is important because through the use of Medigap you can protect yourself from large out-of-pocket expenses should a major medical issue arise. Many people wonder if the monthly premiums for these plans are worth the coverage that the offer, or if they will ever even need this coverage. While there is always a large risk in going without any supplemental coverage and only Part A and Part B Medicare, that doesn’t mean you need to over insure yourself.
The Various Plans
Nine out of ten of the plans pay for the $1100 deductible of Part A and may also cover the $155 deductible with Part B. All supplement plans pay your co-insurance amount associated with hospital expenses after the first 60 days, and it also pays for the total Medicare reimbursement portion for an extra 365 days per lifespan.
Medicare Supplement Plan F
Plan F is very popular due to its outstanding coverage. This plan pays 100 percent of the Medicare gaps leaving you with your monthly premium as the only out-of-pocket cost.
Medicare Supplement Plan G
Plan G is very similar to plan F in that it pays 100 percent coverage of the gaps, however you must first pay the annual Part B deductible yourself out-of-pocket each year. Once this is met the plan will pick up the rest. Many people opt for this plan instead of Plan F because the monthly premiums are lower and you actually save money by paying that deductible yourself.
By not having one of the supplemental Medicare plans many Medicare recipients might discover sooner than later how quickly expenses can pile up and threaten you with outrageous healthcare bills. Choosing the right plan can help create the peace of mind in knowing that your medical expenses will be taken care of.