I like to call this category of health insurance, my risk-aversion category. Simply put, individuals that purchase this plan are not willing to take the risk that if something “major” happens, they will be burdened financially. Medical supplements pretty much will cover the costs that Original Medicare does not pay – which can be in the thousands of dollars . For example, if you ended up staying in the hospital for more than 2 months, it can become expensive.
I recently went to a website where a Medical Doctor posted a video that stated “The true cost of Medigap Insurance”. Basically, his point was that you do not need any additional insurance except Original Medicare. He stated that the average stay at a hospital is about 4-5 days (which was true) and the medical services where you would have to pay 20% (Part B) did not justify the premium. Pretty hard evidence.
However, at the end of the article, where customers placed the comments – 6 of the 8 comments disagreed. These individuals were telling their stories on how they went bankrupt because Original Medicare did not cover the costs above the deductible and cosharing.
In truth, no all situations are the same. You could be health until age 80 (like my grandmother, she is from the South), or end up in a nursing home with Alzheimer’s like a friend that I know. Fortunately, my friend had enough insurance to cover the thousands upon thousands, that otherwise he would have had to pay.
Although, Medicare Advantage does have a cap to how much you can pay out of pocket (a little over $6,000), you are restricted to a network.
Once again a combination of needs and risk tolerance will determine your choice of health plan.
Nebula Insurance Learning Center has a great tutorial on Medicare Advantage and Medigap. I do suggest that you take some time to listen to it.
The last thing about Medicare Supplement Insurance is that is strictly regulated by the Federal and State. All plans are standardized, which means if you hear that a company offer better plans…It is not TRUE! By law, all companies MUST deliver the same benefits according to the chosen plan. Customer experience with the company is the only difference.
Medicare.gov has developed a tool where you can find Medicare Supplement (Medigap) Plans in your area. Although, it is a great tool to use, make it a part of your research on your decision-making. Find an Independent Insurance Agent that will personally assist you. If something goes wrong, it is better to have that Independent Insurance Agent phone number that already knows you, your needs, your living situation, etc., rather than talking to someone new on the phone.
Here is the Medigap Finder Tool
As always you are welcome to get in touch with one of our Agents. Call us, so we can help find you the BEST plan. There is no charge or committment!!