Some people might ask why Medicare supplemental insurance is an important type of coverage for people on Medicare. The answer is actually quite simple after you understand the large gaps left by the federal Medicare program. Many individuals nationwide do not fully realize what are the the out-of-pocket expenses left by Medicare. The answer might surprise you, as the gaps are quite large.
Medicare is broken up in two main categories: Medicare Part A and Medicare Part B. Medicare Part A is known as hospital coverage and Medicare Part B is known as Medical coverage. Medicare Part A has some major gaps if you were to need hospitalization. In 2012, if you were to need care as an inpatient (overnight) in the hospital, you would be required to pay $1,156 for the initial stay. This is known as the Medicare Part A hospital deductible. If you purchase a Medicare supplemental insurance plan, you can enjoy coverage for 100% of the part A hospital deductible.
Here is where things get even worse with Medicare... That $1,156 Part A hospital deductible is "per benefit period" which means that you can have multiple benefit periods on one year. A benefit period begins on the first day you receive care as an inpatient in a hospital and ends after you have been out of the hospital and any other facility for at least 60 days in a row. Therefore, it is mathematically possible that you could have five benefit periods in one year totaling $5,780, assuming you didn't stay longer than 60 days each time.
If you were to stay longer than 60 days in a hospital, Medicare would charge you $289 per day for days 61-90 and $578 per day for days 91-150. You can just imagine the huge financial risk of not purchasing a Medicare supplemental insurance policy.
Now on to Medicare Part B. Again, Medicare Part B is known as Medical coverage. This covers things like lab work, diagnostic testing, surgical services and supplies, doctor office visits, etc. Medicare only covers about 80% of Medicare Part B expenses, leaving the Medicare beneficiary to pay the remaining un-covered 20%. The difficult thing with this is that there is no limit on what the 20% can be. Whether you have a $100 claim, or a $1,000,000 claim, you are responsible for 20%.
Medicare Part B also has an annual deductible ($140 in 2012) that can increase each year. This deductible is required to be met each year before Medicare services under Part B will kick in. Thankfully Medicare does in fact pay 100% of diagnostic testing, although this is still after the Part B deductible is met. As well--Medicare coverage will allow you to choose any doctor or hospital within the U.S. that accepts Medicare. You do not need pre-approvals or pre-certifications to visit a specialist. This is a great feature--especially for active folks who like to travel the country.
The gaps by Medicare described above are not all-inclusive, and there are several other "gaps" that Medicare falls short on, however we have describes the largest of the gaps. The proper Medicare Supplemental Insurance plan can cover 100% of the gaps left by Medicare, requiring you to pay virtually nothing, zero, in our of-pocket-expenses. Many senior citizens nationwide are realizing that Medicare supplement plans (also called Medigap plans) are the way to go, and can help protect you extremely well in the event that you need affordable Medical attention and care.
To get a free rate quote on a Medicare supplement plan, you can fill out the quote form by clicking the "Get Quotes" button on the top and bottom of this website. You will instantly see the rates of many top-rated insurance companies and we are available for free help on selecting the right Medicare plan.
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