Medicare supplement insurance policies are an important part of a long-term plan for anyone over 65 years old. With the ever-increasing cost of healthcare, a Medicare supplement plan can help you eliminate your expenses out of pocket.
Medicare itself pays 80% of most covered services. That leaves you responsible for the other 20%. While 20% does not sound overwhelming, it may be safe to consider a hospital bill for cancer, heart attack, stroke or other important medical “event”.
There are three main reasons why a Medicare Supplement plan is important for the financial well-being of people over 65: https://www.medisupps.com/cigna-medicare-supplemental-insurance-2018/
- It takes the cost of health care out of your monthly budget. If you are on a fixed income, as is the case with many seniors, running a budget is crucial. Healthcare, or medical expenses, is a part of this budget, which is difficult to figure out unless you have a Medicare Supplement Plan. What such a plan does is to include the “health” line in your budget and give it a fixed amount (your monthly premium). Since the supplements are designed to fill in the gaps in Medicare, you should not have any additional expenses.
- There is no upper limit to the 20% paid by the Medicare participant. The way Medicare is currently set up, there is no limit to this 20% co-insurance that a Medicare participant pays. In other words, if you have a $ 200 bill, you pay $ 40, not bad. But if you have a $ 200,000 bill that is feasible in today’s healthcare marketplace, you will be paying $ 40,000, which could be catastrophic if you do not have stable, available savings.
- You may not be able to qualify later on. Although Medicare Supplement plans are standardized and regulated by the federal government, private companies can decide who to accept on their plans. While some companies use less strict underwriting than others, there is always a possibility that you will not be accepted into an supplement plan if you want till you “need” it to apply for it.
Find out if you are eligible! Once you have determined which plan and which company is best for you, you should know the prerequisites for enrolling in a Medicare Supplement Plan. Some companies have different requirements to be able to enroll in different plans, but the most basic requirements are: to be located in a state offering Medicare supplements, over the age of 65 and enrolled in Medicare Parts A and B.
Act Now! Once you have researched the plan and the business you want to settle for, and find that you qualify to apply for a Medigap plan, the next step is to find out which insurance agency you should sign up with. There are many Medigap brokerages that you would like to include in a new Medicare supplement plan. Brokers are paid by the insurance company you sign up with, so their services are free for you. Some brokers may offer incentives on how to track you every year to prevent rate hikes and such things. Go with one that makes you feel good. If you have not already researched, the registration period is the best time to apply.