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Do you really need a Medicare Supplement?

Can you afford your Medicare coverage?

Part A hospital costs are defined by benefit periods, and you pay a deductible for each. Additional coinsurance applies for each day of hospital stays longer than 60 days. After you have paid your Part B deductible, you will pay 20 percent of the Medicare-approved amount for services, with no out-of-pocket maximum. These costs can add up if you experience large surgeries or receive expensive treatments.

Overall, it comes down to how affordable your medical expenses are and how expensive your payments are to Medicare. If you feel you need assistance with other medical expenses, a Medicare Supplement might be worth looking into.

About Medicare Supplements

Medicare Supplements, also known as Medigap plans, are meant to fill in gaps in your coverage such as copayments, coinsurance, and deductibles toward your Part A and Part B care. Your coverage applies to any healthcare provider that participates in Medicare. Each Medicare Supplement plan is only for one person, so your spouse would need to buy a separate plan.

There are ten available plans, lettered A, B, C, D, F, G, K, L, M, and N. Each offers a portion of coverage for Part A and Part B expenses. These include Part A coinsurance & hospital costs, Part B copayments & coinsurance, the first three pints of blood, Part A hospice, skilled nursing facility, Part A deductible, Part B deductible, Part B excess charges, and foreign travel emergency. Although these are offered by private companies, all plans of the same letter have the same benefits.

Recently, the most extensive plans have been removed from the reach of new Medicare beneficiaries. Plans C and F cover the Part B deductible, which is no longer being covered and so these two are not available to people who became eligible for Medicare after January 1, 2020.

Who Needs Medicare Supplements?

Do you travel frequently?  Medicare offers no coverage outside of the United States unless you fit a set of specific circumstances. Six of the ten Medicare Advantage plans offer 80 percent coverage for foreign travel emergency care, helping to fill this gap.

Medicare Supplement plans are renewable for life, as long as you pay your premiums. You can only be dropped if you lied on your original application, stop paying your premiums, or the company goes bankrupt.

If you want full coverage, Plan F or Plan G are your choices, depending on when you became eligible for Medicare. Plan G offers coverage for all areas except the Part B deductible, which is $203 in 2021. 

The high deductible Plan F (for those eligible before 2020) and high deductible Plan G are great options with their low monthly premiums and promise of full coverage after the deductible is met. Healthy people with low foreseen medical needs can benefit from these plans as long as they can afford the deductible.

You do not need a Medicare Supplement if: 

  • You have a Medicare Advantage plan. Actually, you cannot have both
  • You have group health insurance through a current or former employer, including military plans
  • You have Medicaid
  • You have a Medicare Savings Program, such as the Qualified Medicare Beneficiary Program, which covers your out-of-pocket expenses

For more information about Medicare Supplement Plans, give us a call today!