Are Medicare Supplement Plans Worth It?


Are Medicare Supplement Plans Worth It?

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You have a lot to figure out when you begin your Medicare journey. When you’re turning 65, the first thing you need to figure out is if you should enroll in a Medicare Supplement plan or not. Are Medicare Supplement plans worth it? You’ve probably been asking this question. Let’s find out.

Why do I need a supplement to Medicare? Are Medicare Supplement Plans worth it? 

It can be a huge and costly mistake if you only rely on Original Medicare without any backup coverage. News Flash: Original Medicare does not cover all of your healthcare costs which can leave you with unexpected and costly healthcare bills. 

Basic Medicare will only cover 80% of your Medicare approved medical bills. You’re responsible for the remaining 20% — which can be HUGE! It only takes is 1 significant hospital visit and you can be on the hook for thousands of dollars.

Is supplemental Medicare insurance worth it? Yes, and we’ll break down how a Medigap plan can protect you from huge medical bills.

In this article we’ll discuss:

What is a Medicare Supplement?

Many people want to supplement Original Medicare coverage with a private insurance plan that fills in the various gaps that have been left over by Medicare’s basic coverage. These supplement plans are also known as sometimes known as Medigap plans and are designated by plan letters. These plans are not part of Original Medicare.

Are Medicare Supplement Plans Worth It?

For example, Medigap Plan F pays 100% of out-of-pocket costs by paying a monthly premium. The benefits of a Plan F are the same no matter what company you choose. The same goes for Plan G or any other plan letter. In other words, Medigap plans are standardized. However, the cost of a plan will be different from company to company.  States regulate Medicare Supplement companies to make sure they maintain these coverage levels.

why do i need a supplement to medicare?

When you enroll in Medicare, you’ll have Part A (your hospital coverage) and Part B (your outpatient care). Parts A and B cover around 80% of your medical costs and you’re responsible for 20%.

You have 2 options to help protect you from the unexpected costs of Original Medicare:

  • Medicare Supplement Insurance Plans
  • Medicare Advantage Plans

Your out of pocket costs with Original Medicare will vary significantly based on your health. A Kaiser Family Foundation study found that an average Medicare beneficiary that is in poor health would pay approximately 2 1/2 times the out-of-pocket costs of beneficiaries that were in excellent health.

Now it is impossible to know the future and when our health can change from healthy to sick. This unpredictability is exactly why a Medicare Supplement is useful. A Medigap plan has predictable premium costs that will cover your unpredictable health care costs.

Is Medicare Supplemental insurance necessary? Yes!

medicare without supplemental insurance

medicare without supplemental insurance
Here is a quick example of potential costs. As you can see, you're at risk for huge medical bills if you have Original Medicare without supplemental insurance.

Medicare Part A is free for most people and it comes with a $1,364 deductible for each benefit period. Medicare Part B comes with a low annual deductible, however you will pay approximately 20% of the remainder for most physician services.

IMPORTANT: That Part B 20% includes time when you’re a hospital inpatient. It doesn’t stop there. You’re responsible for the 20% for outpatient therapy as well as durable medical equipment. These are things like wheelchairs or walkers.

Your 20% comes after your deductible. There is no limit to how much you’re responsible for paying out.

What if you have a sudden heart attack & require multiple heart surgeries and visits to your hospital? You may be setting yourself up for medical bankruptcy.

Medical procedures, rehab, medications, hospital visits… it all can quickly add up to huge medical bills. These bills can be avoided with an affordable Medicare Supplement plan. 

is supplemental medicare insurance a waste of money?

Is Medicare supplemental insurance worth it or is it a waste of money? The choice to purchase a Medicare Supplement plan will be determined by your risk tolerance. In other words — Do you want predictable or unpredictable health care costs? 

  • Are you the type of person who wants peace of mind with predictable health care costs by paying a monthly Medigap premium?
  • Or do you want to skip getting a Medigap plan and hope to save money on monthly premiums — but stress out about when you may have an unexpected illness or injury that can cost you thousands of dollars?

Is Medigap insurance worth it? Do I really need supplemental insurance with Medicare? Yes, if you want peace of mind.

Should you Buy a Medicare Supplement plan?

What do you think? Is supplemental Medicare insurance worth it? It definitely is. If you can afford a Medicare Supplement policy you should shop to see which plan can meet your budget and coverage needs. If you can’t afford a Medigap policy, then you should consider a Medicare Advantage plan. There are some disadvantages of MAPD plans, but they’re better than no coverage.

Are Medicare Supplement plans worth it? Absolutely! Contact us today if you’re thinking about a Medicare Supplement. REMEDIGAP is a licensed independent broker and has access to the top rated Medigap companies. We can analyze the best plans in your area and answer any question you have about your Medicare needs.

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