Medicare Supplement Plans
Supplemental Coverage for Medicare Limitations
Here’s the problem…
When we reach age 65 and replace our health insurance with medicare, we must be prepared to pay for the healthcare expenses that Medicare doesn’t cover. Because we are still responsible for Medicare deductibles & co-payments in addition to fees or charges by doctors & hospitals that exceed the standard Medicare allowance. What’s more, Medicare has coverage limitations and benefit exclusions including various services device & supplies that are not covered at all under Medicare like prescription drugs, dental care, vision care, hearing aids, and custodial care. Even when it’s required after surgery or hospitalization for a serious injury or major illness like cancer, stroke, or heart attack. And these uncovered expenses can cost us hundreds or even thousands of dollars every year which can eat into our retirement income or eat away at our retirement savings even if we don’t have any major health care issues. So how can we get coverage for many of the limitations and exclusions in Medicare? With Medicare supplement insurance also know as medigap coverage.
Medigap coverage is private health insurance approved by medicare designed to fill in the gaps of medicare coverage and help you pay for many of the costs that medicare doesn’t cover without cutting into your retirement income or dipping into your retirement savings. Potentially saving you hundreds or even thousands of dollars every year. Which is why more than 20 million retirees have added a medigap plan to their medicare coverage from each one providing a different combination of supplemental benefits for example some plans cover only prescription drugs.
Some plans only pay your deductibles and copayments. Some plans also cover excess charges or extend you benefits beyond medicare cut-offs. However there is no difference between the plan provisions offered by one insurance company or the same plan provisions offered by another insurance company. Because they are all standardized by medicare and regulated by the state in which you reside. While the cost of coverage will vary depending on where you live and the plan you select, every medigap plan will allow you to choose any doctor or hospital that accepts medicare patients. Even a specialist and without a referral or any requirement for pre-approval. If you apply for coverage within 6 months of your 65th birthday or during you state’s open enrollment period, you are guaranteed to be approved for medigap coverage regardless of your medical history or current health condition. But if you wait more than more than 6 months past your 65th birthday or if your state does not provide an open enrollment period, you could be denied medigap coverage based on a pre-existing health condition.
Once you secure medigap coverage, your insurance company cannot cancel your policy or terminate your benefits because all medigap plans are guaranteed renewable for as long as you make your payments even if you develop a serious health condition. It’s also important to know that a medigap policy can only cover one person so if your and your spouse both want coverage you will need to apply for 2 separate policies making sense of medicare benefits, limitations and exclusions can be complicated and understanding the supplemental coverage available can be confusing.
What’s more there are other important decisions concerning your medicare options that you must make before you reach age 65 especially if your are married and either your or your spouse has insurance through an employer which is why you should meet with a qualified medicare specialist who can explain your choices and compare your options including the cost of each plan available in your state.
So ask yourself this..
Does it make good sense to pay for all the health care expenses that Medicare doesn’t cover out of your monthly retirement income, the money in your savings& expenses that can amount to hundreds or thousands of dollars every year? Or does it make better sense to purchase a medigap insurance plan to cover those expenses for you.
This content is for informational purposes only. It does not reference, represent or recommend any specific product or company. References to interest rates, tax rates, growth rates or earnings assumptions are hypothetical, and all tax or legal implications should be verified by a qualified professional.