Medicare Supplemental Insurance: Is It In Your Future?

What is medicare supplemental insurance? It is insurance allowing retirees to maintain their assets!

Most retirees would find paying $160,000, or 20% of an $800,000 hospital bill uncomfortable or impossible. What is Medicare supplemental insurance and can it keep you out of such a predicament?

An Inexpensive Solution

Medicare supplemental insurance is an inexpensive answer to paying medical claims. Medicare only pays 48% to 70% of Medicare recipient bills. It was not ever designed to pay for all medical costs.

Medicare Supplements

Medicare supplements pick up what Medicare does not pay, some more than others. “A”, the least comprehensive and least expensive supplement, pays for hospital charges of $289/day, days 61 to 90, and $576 a day, days 91 to 365.

In addition, Plan B pays the Medicare $140 annual deductible. “C” adds skilled nursing facility coinsurance, Medicare’s Part B deductible, and also features a foreign travel benefit.

“Outline of Coverage”

The “Outline of Medicare Supplement Coverage” shows what each supplement pays in grid format. It is provided to the customer at sales time. When one inspects the grid, one will know which plan makes sense for them.

The Key to The “Outline of Coverage”

The importance of the “Outline” is a column of numbers labelled “what you pay” under a given supplement plan when one has a medical bill. When one has an “Outline of Coverage” in hand one can see that supplement Plan F’s column labelled “what you pay” has “zero” values all the way down!

Peace of Mind

When one ponders a $160,000 bill as described in the first paragraph above, and then identifies supplements priced at just over $100 per month, this is a reasonable exchange for peace of mind. Perhaps the best answer to the question, “what is Medicare supplemental insurance” is that it is peace of mind.

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