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Is Supplemental Medicare Insurance a Waste of Money


If you’re on Medicare, you might be wondering if Medicare Supplement plans are worth it. Consider that Medicare only covers a portion of your medical costs, leaving you to pay the remaining balance. Add deductibles as well as copays, and suddenly Medigap premiums make sense.

We’re here to help answer frequently asked questions about supplemental insurance. You’ll walk away knowing whether it’s worth looking into Medigap, as well as other supplemental insurance.

Do I Need a Medicare Supplement?

To know whether you need a Medicare Supplement plan, it’s helpful first to understand what the plans do. A Medigap plan covers costs left by Original Medicare. Having a Medigap plan can help you keep your health care costs down by covering the costs you’d otherwise pay. While it’s not necessary, it’s certainly beneficial.

Is Medigap Insurance a Waste of Money?

The cost of Medigap is undoubtedly a factor to consider. Medigap premiums range in price, and most people can find an option they’re able to afford. When you assess the amount of money you’ll save on medical bills in the long run, paying a monthly Medigap premium often makes sense. It’s important to note that Medigap premiums vary per individual. Even if you get the same plan as your next-door neighbor, your premiums likely won’t be the same. This range is due to a variety of factors that affect premium rates.

One of the main factors in determining premiums is the letter plan you select.

Each Medigap plan is standardized by the federal government. Further, carriers vary in their rating methods, which is another component in determining your premium rates.

When exploring the different plan options, keep your future needs in mind. If you enjoy traveling, a Medigap plan is a must.

Is Medigap Worth It?

Medicare isn’t free. You’re probably wondering why you’d want to pay more for coverage, on top of your existing Part B premiums. However, the amount you’ll pay for a Medigap plan can save you much more in health care costs down the road. Many find the peace of mind and financial stability that comes with a Medigap plan worth it. Medigap plans are also accepted everywhere Medicare Assignment is, which is about 96% of providers. This means you’ll most likely be able to keep your preferred providers and easily find specialists in your area.

Consider your health care needs, as well as your financial situation. While many can benefit from a Medicare Supplement plan, others might find an Advantage plan better suits their needs.

Are Medicare Advantage Plans Worth It?

Part C is also known as an Advantage plan. These plans include the same benefits as Original Medicare and often provide prescription drug coverage and other perks, including dental, vision, and hearing.Advantage plans can work well for some individuals. If you have an Advantage plan, it acts as a substitute for Original Medicare, meaning you won’t need Medigap. However, you’ll want to make sure your preferred doctors are in your network.

Also, keep in mind that you’ll likely need a referral from your Advantage plan to see a specialist. So, these plans are better suited to healthier individuals who don’t need to see many doctors.

If you’re choosing between Medigap and Advantage plans, make sure to keep your future health and budget needs in mind as well as your current circumstances.

Is Medicare Part D Worth It?

If you’re going with a Medigap plan rather than Advantage, prescription drugs won’t be covered. Therefore, it’s advised that you enroll in a Part D plan. If you delay enrollment, you could face a penalty for the life of your policy.If you don’t take any medications, you might wonder why you would enroll in such a plan today. In reality, it can easily be worth it, considering the money you could save on future penalties.

By paying for a Part D drug plan now, you can safeguard yourself against higher drug prices. If you’re currently on any prescriptions, make sure the plan’s formulary covers them.

Do I Really Need Supplemental Insurance with Medicare?

In the matter of your health care, it’s better to have extra protection. Having only Medicare may not be enough to protect you from large medical bills. Medicare covers only a portion of your medical costs. Thus, leaving you with the remaining portion of the bill, in addition to any unmet deductibles or copayments. The best option would be to get an additional plan that can cover your medical costs.

Are Medigap Plans Worth the Cost in all States?

The federal government regulates the benefits of all the plans, but it doesn’t have any influence on their costs. The plan rates vary in different insurance companies and states.

For example, Medigap costs are different in Louisiana than they are in South Dakota.

The insured should consider comparing different companies to avoid overpaying for what they need. Comparing prices includes checking how insurance companies price their policies as well as the features that would contribute to increased rates.

Remember that the cost also varies from one letter plan to another; So, if you find a Plan G cheaper than a Plan F, you should see what both companies are offering the Plan G and Plan F for, then you can make the best decision.

How to Find Out if a Medicare Supplement is Worth It for You

It is better to have some protection when it comes to your healthcare than it is to have no protection. Enrolling in a plan will help give you peace of mind and financial security. Medicare Supplement plans are worth it; doctor freedom, low out of pocket costs, and when Medicare pays the claim, your supplemental Medicare plan will pay the rest.

Our team of experts is ready to answer your questions are share the most popular Medigap plans in your area. Call us today to find out if Medicare Supplements are worth it for you!

You can also fill out a compare rates form to see your rates now.

Lindsay Malzone

Lindsay Malzone is the Medicare expert for MedicareFAQ. She has been working in the Medicare industry since 2017. She is featured in many publications as well as writes regularly for other expert columns regarding Medicare. You can also find her over on our Medicare Channel on YouTube as well as contributing to our Medicare Community on Facebook.

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