If you have Medicare, you may be thinking about buying a supplement policy, also known as medigap coverage. Medicare does not cover all of the costs associated with your medical bills. It may only cover a flat fee or a percentage of your appointments, treatments, hospital stays and surgeries. This is where a supplemental policy kicks in. A medicare supplement covers these gaps up to the amount listed on your policy. For example, if you have a $10,000 medical bill, and Medicare only pays $7,000 of it, your supplemental policy may cover the other $3,000 if your policy limits are set to that amount or higher. If you are on the fence about buying a supplement policy, learning the pros and cons may help you decide if it is right for you. Here are a few of the pros and cons of a medicare supplement policy.
Cons of a Medicare Supplement Policy
Won't Cover Procedures and Treatments Not Covered By Medicare
One of the downsides to a Medicare supplemental policy is that it will not cover procedures and treatments not covered by Medicare. It only offers supplemental coverage to those treatments already covered. If Medicare would not cover a procedure or treatment, the supplemental policy will not either.
The Costs May Outweigh the Savings
The other disadvantage is that the costs of the supplemental policy may outweigh the savings. You have to pay a flat amount every month for the supplemental policy regardless of whether or not you use it. If you do not have any major medical issues, you may lose money on the plan.
Pros of a Medicare Supplement Policy
Medigap Policies Are Easy to Obtain
One of the benefits to these policies is that they are fairly easy to obtain. As long as you have Medicare Part A and Part B coverage, you qualify for the plan. There are no hoops to jump through or physicals to get. And any company licensed to sell health insurance in your state can sell you one of these policies.
Can Save You if You Have Costly Medical Expenses
The biggest benefit to a Medicare supplement policy is that they can save you money if you have costly medical expenses. They can cover your deductible, co-pay, and co-insurance costs. This helps ensure you have no unexpected out of pocket expenses and can save you thousands in the event of a medical emergency.
If you are interested in learning more about Medicare supplement plans, contact an insurance company licensed to sell health insurance plans in your state. They can help answer any questions you may have and help you determine if buying a supplemental policy is right for you.Share
25 August 2017
After we bought a house, I started realizing that we were going to need to learn to save a little money. We had become pretty laid back about spending because we were so accustomed to making so much extra each month, but with a mortgage, we found ourselves running out of money on a regular basis. I decided to get real about our finances, which is why I set up a financial plan to stick with year round. You wouldn't believe how much of a difference that simple plan made. We went from scraping together money to head to the grocery store to sticking with a rock solid budget.