Do you have to have a supplement with Medicare?
Over 11.2 million people have a Medicare Supplement, but is it required?
Let’s go through what a Medicare Supplement is, what it does, and why you might find that you need it.
Why do you need a Medicare Supplement?
To make things simple, Medicare covers about 80% of bills that are Medicare-approved.
This leaves you with a 20% coinsurance on all Medicare-approved bills.
In addition, you also have deductibles for hospital bills (Medicare Part A) and medical bills (Medicare Part B).
For Part A, that deductible is $1,408 and for Part B, that deductible is $198.
While the deductibles aren’t that bad when you compare them to regular health insurance deductibles, the coinsurance can be a major problem.
Major, unexpected health conditions are expensive. There’s no doubt about that.
For many seniors enrolled in Medicare, they rely on a Medicare Supplement, because they don’t want that 20% coinsurance hanging over their head.
If the worst does happen, a pile of expensive medical bills only makes it worse. That’s why a Medicare Supplement is so strongly recommended.
What would happen if you had to pay for 20% of a major surgery?
Heart Attack Example
Many sources state that the cost of a heart attack can range from $750,000 to $1 million.
With time, those costs will only continue to go up.
The bills come from a mixture of:
- Physician costs,
- Hospital readmission,
- and more.
Those numbers are startling, we know. And what’s worse is that heart disease in general is the cause for about 25% of deaths in the United States. That’s over 616,000 people per year, and counting.
So, this example is more likely than we’d like to admit. Perhaps you even have a loved one who has experienced this first-hand.
Let’s break down the potential costs if you didn’t have a Medicare Supplement.
To make things simple, let’s say that the heart attack, when all is said and done, costs $750,000.
The 20% coinsurance on that dollar amount is $150,000.
That makes the deductibles look like peanuts, which would end up being around $1,500.
At the end of the day, your heart attack would cost you about $151,500.
Now, let’s look at the costs if you had a Medicare Supplement. For this example, we’ll say that you have a Medigap Plan G.
Plan G pays for the 20% coinsurance, and it also pays for the Part A deductible.
That means that your only bill from your heart attack would be $198.
Hopefully, this example brings some clarity to you. A Medicare Supplement is more than just another insurance policy.
But do you have to have a Medigap plan? The short answer is no. You don’t have to have a supplement with Medicare, but many people choose to get one for needed financial protection.
It’s a blanket of protection that covers you under the worst circumstances.
And that’s why 11.2 million people wouldn’t go a day without it.
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.