Is The Cost of Medicare Supplement Insurance A Worthwhile Investment?

For the reasonable cost of Medicare supplement insurance you can protect yourself from ruinous medical bills.

Congratulations! You are turning 65 and you’ve worked hard your entire adult life. Now you’ll need to make the best possible decisions for your health and the health of your finances.

Are Medicare Parts A, B & D Enough?

For most of your life you’ve paid Medicare taxes, so your Medicare Part A insurance premium is $0 and your Medicaid Part B insurance is $99.90 per month. You’ve even opted for Medicare Part D to provide some coverage for prescription drugs. But even with three different health insurance plans your bases are not covered. Compared to Medicare, the cost of Medicare supplement insurance seems high, but can you afford to skip it?

Insured But Not Protected

If you require hospitalization then you’ll be responsible for the $1156 deductible. If your stay exceeds 60 days then your copay will be $289 per day until day 91, at which point your daily copay rises to $578! Your first 5 month hospital stay could cost you $44,506; however subsequent hospital stays will max out around $10,000. Of course you still pay for 20% of your outpatient care; and there is no maximum-out-of-pocket for part B.

Mind The Gap!

It gets worse. Medicare provides no coverage whatsoever for many of your health care needs. For example, you’ll get no coverage for preventative care or for nursing home visits longer than 4 months.

Medigap To The Rescue

Medigap is the informal name for a collection of Medicare supplement plans that are defined by the federal government but sold by the private sector. Today there are seven different standardized Medigap plans that can reduce deductibles and co-payments while increasing coverage for nursing care and hospital stays. Perhaps most importantly, Medigap protects you with out-of-pocket-maximums that can save you from financial ruin. It is no wonder that 90% of Medicare beneficiaries have other coverage that supplements Medicare. Like most seniors, you will find that the cost of Medicare supplement insurance is lower than the cost of falling through the gaps in Medicare’s coverage.

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