If you are near or past the magical age of 65, chances are you have already given a good deal of thought to Medicare, the health insurance program that covers Americans over 65 and the disabled. In addition to Medicare Part A, which covers in-hospital care, Part B, which covers doctor’s and outpatient office visits, and Part D, which covers prescription drugs, you may have heard about Supplemental Policies. These products are sold by commercial insurance companies to help you pay for additional expenses, like co-pays and deductibles, not covered by traditional Medicare. But are these policies worth buying? The answer is…it depends.
Medicare supplemental insurance – sometimes referred to as Medigap – claims to cover anything that Medicare does not. But if you read the fine print, it turns out that there isn’t much that Medicare doesn’t cover. Medicare pays for the majority of the medical procedures. The adjustors at Medicare will calculate a fair value for the services rendered, pay the provider for around 80% of the calculated cost, and the remaining 20% or so is left to you as a patient. This means that under Medicare you will be left with a considerably low out-of-pocket cost for your health care.
However, Medicare does not cover everything nor everyone, and that is where supplemental plans come into play. Deductibles and co-pays – the amount for which you are responsible if you are on Medicare – are covered by Medigap insurance. If you anticipate a high volume of hospitalizations or doctor’s visits, supplemental insurance may be a wise investment for you. If, however, you only visit the doctor a few times a year, the cost of supplemental insurance may not be offset by the amount of coverage offered.
In short, the answer really does depend on your individual needs. You can get more information by visiting the Medicare website. If you would like to know more or would like assistance with choosing a plan, reach out to us at Care Answered.