Are Medicare Supplement Plans Worth It?

Medicare Supplement Plans, also known as Medigap, is a private insurance policy that improves on the shortcomings of basic Medicare. They provide additional health insurance coverage for Medicare recipients by covering costs such as deductibles, copayments, and coinsurance. The big question remains: why should a patient who already has Medicare use a Medicare Supplement plan?

The cost of your teeming medical needs may stress your finances:

Analysts say that having Original Medicare without supplement insurance could backfire. While Part A is free for many recipients, as of 2020, it comes with a deductible of $1,408, and Part B comes with a deductible of $198. You also must pay the Part B premium, which is $144.60. On top of these costs, you are responsible for the 20% of costs that Original Medicare does not cover.

There is also no cap on the amount of money that the patient can pay out of pocket. For instance, if you suffer a heart attack, require numerous surgeries, and make frequent visits to the hospital, you could end up penniless overnight. A typical heart bypass procedure costs over $100,000, while a heart valve replacement can cost over $170,000. Should all these costs be processed by your Part B, your 20% obligation would be about $20,000 for the heart bypass and $34,000 for valve replacement. 

Even though Original Medicare pays the majority, these costs are still pretty hefty. This is where a Medicare Supplement plan can come in as depending on the plan you choose, you can have most, if not all, of the remaining 20% of costs covered.

It reduces legwork:

When you initially enroll in Medicare Part B, you have six months to purchase a Supplement Plan without an insurance provider delving into your health history to determine your suitableness for coverage. This makes finding and enrolling in the right plan with the right coverage much easier.

Who can use Medicare Supplement Insurance?

Medigap safeguards you from excessive out of pocket costs. Also, you might consider a Medicare Supplement plan if you’re in any of the following scenarios:

• You travel abroad frequently and would like to have insurance cover emergency healthcare abroad (a luxury that Part A and Part B may not offer). Some Medigap plans offer foreign travel insurance such as Plan C, Plan D, Plan F, Plan G, Plan M, and Plan N. These plans usually pay 80% of the emergency medical expenses for recipients outside the shores of the US.
• You require multiple hospital treatment over the course of the year.
• You require regular doctor visits or need medical care often.

Medigap plans are standardized insurance plans that can be helpful if you want to have more coverage beyond Part A and Part B. If you have more questions, you can contact any of our licensed insurance advisors at 816-476-8191. They will answer your questions and discuss how you can qualify for the various Medicare plans.