Senior Insurance Blog

Are Medicare Supplements Worth It?

Are Medicare Supplements Worth It?

If you’re new to Medicare, one of the most popular questions we’re asked is this: are Medicare Supplements worth it?

When it comes to health insurance, we have to decide if the insurance coverage is worth the cost of the monthly premiums.

To help you decide if Medicare Supplements are worth it, we decided to come up with an example of an all-too-common scenario: a heart attack.

Heart attacks are unfortunately common – in fact, every 44 seconds, an American has a heart attack. They’re so common that we’d bet you know someone who’s had one.

What’s worse is that heart attacks end up being extremely expensive. Many sources estimate that the cost of a heart attack can range from $750,000 to $1 million. Over time, those costs will only go up as the cost of health care rises.

Do I Need a Medicare Supplement

The majority of the bills will come from hospitalization, rehab, medications, and the like.

If you only have Medicare, and you do not have a Medicare Supplement, you would be on the hook for $150,000-$200,000.

How can this be? Medicare is supposed to cover my medical costs, right?

Well, Medicare covers about 80% of your medical costs, and you’re left with a 20% coinsurance – not to mention the deductibles (which seem like peanuts in this example).

Twenty percent of $750,000 is $150,000. That’s what you’d have to pay if your heart attack ended up costing $750,000.

And if your heart attack ended up costing $1 million, you’d be responsible for $200,000 of that.

Add on your deductibles (Part A is $1,364 and Part B is $185), and there’s your total cost.

Now, let’s look at the costs if you had a Medicare Supplement.

The supplement with the most coverage is Plan F, and the math on this one is easy.

  Heart attack without a Medicare Supplement Heart attack with a Medicare Supplement Plan F
20% coinsurance $150,000 $0
Part A Deductible $1,364  $0
Part B Deductible $185  $0
TOTAL About $151,500

$0

If you had a Plan G, you’d be responsible for $185.

Either way, you tell us: is a Medicare Supplement worth it?

The monthly cost for a supplement can range pretty greatly, depending on your age, location, gender, and whether or not you use tobacco.

For many individuals, a great Medicare Supplement costs around $100-$125 per month – would you pay $100 per month to save hundreds of thousands?

We can’t forget that life also brings other health concerns, such as cancer, a broken hip when you slip on some ice, or arthritis that’s been bothering you for years.

We all run the risk of having a health condition, and with the risks of having something happen down the line, why wouldn’t you protect your assets against those risks?

If you’d like to receive personalized Medicare Supplement quotes, contact our team today.

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Our team of dedicated, licensed agents can help you as little or as much as you need. Whether it’s answering a few questions about Medicare or creating a comprehensive Medicare Planner with you, we are your Medicare Allies.

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