One of the major reasons for the introduction of Medicare is the constant rise in insurance, pharmaceutical, and medical costs. In addition, the unpredictable nature of the health sector and the Affordable Care Act and Medicare Program makes healthcare challenging to navigate. This is especially true as people age and have greater healthcare needs. This makes Medicare a necessity for senior citizens who are 65 years and older. This plan covers drugs, hospital stays, and doctor’s visits to the patient.
Medicare supplement is a type of private health insurance policy that helps to cover the gaps in Medicare. In order to understand how Medicare supplement insurance can help, you first must understand how Medicare coverage works.
So, what is Medicare?
There are four different parts of Medicare – Part A, B, C, and D. Each part covers different health care benefits. Let’s look at the first two parts, that combined, make up what is referred to as “Original Medicare.” This is the portion of coverage that is provided by the government.
- Part A covers hospital insurance
- Part B covers preventative and necessary medical health care service
Be aware that Original Medicare does not cover all health costs.That is where a Medicare supplement steps in. Medicare supplements help to pay for some of the health costs that are not covered by your Original Medicare. Examples include:
- Deductibles
- Copayments
- Co-insurance
When Medicare supplement insurance steps in
The Federal government first pays its share of your medical expenses. After that, your Medicare Supplement insurance company supplement policy steps in to pay the rest.
What most hospitals, Medicare recipients, and doctors consider the Gold Standard of medical coverage is Medicare supplements. You might ask, “What makes Medicare supplement insurance so important and popular?” Here are some of the reasons:
- Medicare supplements cover most or all of the remaining approved Medicare charges. A policy assists with covering some Medicare deductibles like co-insurance, copayments, and deductibles.
- As long as the premiums are paid, Medicare supplements remain renewable for life. In addition, there are no maximums, nor can a policy holder be cancelled as a result of high-dollar or frequent claims.
The truth about Medicare supplement insurance
Although Medicare supplement insurance has become an essential health retirement plan, there are misconceptions. Three of the most important facts you should know include:
- One of the biggest expenses made by senior citizens is Health care. It is advisable that every senior take it seriously when planning for retirement expenses.
- The best time to apply for a Medicare supplement plan is when you first become eligible. Nevertheless, you can apply at any time. When you apply you will be subjected to undergo medical underwriting. This is the process during which insurance companies gather data about your health status including both past and present health conditions. This determines how much you will be charged if your application is approved or rejected for a plan.
- In the event your Medicare Supplement insurance company goes bankrupt, you likely will be given guaranteed issue rights to purchase a new plan.
Don’t go it alone when it comes to Medicare and Medicare supplement insurance
As if aging and retiring is not confusing and challenging enough, insurance sometimes feels like a complicated and complex issue to address. At least it does until you have someone like me to help you navigate the facts.
Healthcare and insurance, including Medicare and Medicare supplement insurance, are essential to both the physical and financial health of every senior and retiree. So, you can’t throw up your hands, check a few boxes and go with whatever happens. You must be informed and purposeful in your choices. Contact me when you are ready to tackle it. I am here to help.
Larry