If you’re wondering if Medicare Supplement plans are worth it, keep reading.
Having only Medicare may not be enough to protect you from large medical bills, and there are services with no coverage.
Medicare covers only 80% of your medical costs. Thus, leaving you with 20% 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 expenses, more than Part A and Part B currently cover.
Supplemental plans are healthcare insurance policies that provide coverage for the out-of-pocket expenses such as coinsurance, deductibles, and co-payments that beneficiaries are left responsible for paying.
Find out why Medicare Supplements are necessary below.
Are Medicare Supplement Plans Worth It?
Some feel Medicare Supplement plans are a waste of money, but others think they’re worth it.
You have to consider your specific health care needs and financial station.
While many people could benefit from a supplement plan, others may find a Medicare Advantage plan is more beneficial to their situation.
The coverage that is best for you may not be what is best for your neighbor.
Once you determine the differences in Medicare Advantage vs. Medicare Supplements, you can better understand your needs.
Do I Really Need Supplemental Insurance with Medicare?
Do you have a rainy day fund to cover the out of pocket expenses Medicare leaves you to pay?
With supplemental plans, it’s always good to know you have full protection in case of an illness rather than to risk losing your assets to pay for your hospital bills.
Comprehensive coverage might cost more, but it covers more. Most people aging into Medicare have opted to enroll in this additional coverage to give them peace of mind and financial stability.
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.
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 most informed decision.
When you talk to a licensed insurance expert, talk to one that can provide rates from multiple insurance companies. Otherwise, you may be getting a biased quote.
Criteria Used by Insurers to Determine Cost
Insurance companies use different rating systems to determine premium rates. The rates may be slightly lower initially but increase later as you age. Below are some of the ways that the insurance companies determine their premium:
- Issue-age-rated plan: the carrier sets your rates on the date that you purchased the insurance plan. The premiums are lower for the people buying the policy at a younger age than the elderly.
- Attained-age-rated: the insurance companies set the premiums depending on the insured age at the time of purchase of the policy. Attained-age-rated can be beneficial for those new to Medicare.
- Community-rated: the costs for the insured remain standard for all beneficiaries regardless of their age.
How Do I Save Money When Purchasing a Medigap Plan
Supplement plans have a monthly premium, but many of these plans have little to no out-of-pocket costs.
Meaning, the money you would’ve spent on coinsurance, co-payments, and deductibles are saved instead of spent on doctor visits.
It’s essential to understand the costs and benefits provided by every letter plan to get the right coverage that caters to your medical expenses at a reasonable budget.
Some of the ways that you can retain premiums on the lower sides include:
- Household discounts- some insurers provide household discounts while others don’t. Discounts tend to lower the costs incurred in paying the premiums.
- Don’t limit yourself to one carrier- the Federal government standardizes these plans.
- Open Enrollment Period- applying for a plan during this period provides a guaranteed issue regardless of pre-existing medical conditions.
- Additionally, no one who applies during the open enrollment period is subject to any medical underwriting.
Your Initial Open Enrollment Period runs for six months from the first day of the month that you turned 65 years AND were enrolled in Part B.
Applying during your Open Enrollment Period grants your Supplement Guaranteed Issue rights, while at the same time maintaining your insurance premiums on the lower end.
When you apply during the Open Enrollment period, you can’t be denied coverage.
Find Out if Medicare Supplement Insurance is Worth It
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, the insurance company pays.
Our team of experts is ready to answer your questions. Call us today to find out if Medicare Supplements are worth it for you! You can also fill out or compare rates form to have a licensed agent in your state analyze rates with the top carriers today.