Do You Need A Medicare Supplement Policy?

If you are enrolling in Medicare, you may be surprised at what your original Medicare does not pay for regarding your healthcare services and supplies. Many people fill these gaps by purchasing a Medicare Supplement Insurance policy, often referred to as a Medigap policy. This policy differs from your original Medicare in numerous ways but could save you significant money. Here is an outline of what to expect.

1. What Will You Have To Pay Out Of Pocket Without A Medicare Supplement Policy?

Your Medicare Part A premiums are free for most people who worked and paid Medicare taxes for at least ten years, but there are out-of-pocket expenses and deductibles. If you do not have a Medicare Supplement policy starting in 2023, you will owe $1600 anytime the hospital admits you.

If you remain in the hospital for more than 60 days, you will owe $400 per day for each day over the 60. This cost continues to climb the longer you are hospitalized.

Your original Medicare will pay for the first 20 days in a skilled nursing facility following your hospitalization. Still, if you stay longer than that, you will be responsible for paying $200 per day. You may also owe up to 20% of the Medicare-approved amount for any medical equipment your doctor orders. 

If you pay for Part B, which is your medical insurance coverage, the costs can range up to approximately $165 per month in 2023, but this monthly cost can change annually. Part B also comes with a $226 annual deductible payable yearly. 

2. What Will The Medicare Supplement Policy Pay?

A Medicare supplement policy can help you control your healthcare costs by assisting you in paying some of the out-of-pocket expenses you would typically face without it. While plans range in price, numerous plans are available through the Medicare Enrollment Center with low or no out-of-pocket premiums. Some programs will help you pay for out-of-pocket premiums if you qualify.

While many companies promote their plans as being better than their competitors, the government standardizes the benefits of each plan. Medicare supplement plans cover most of the remaining costs that your original Medicare does not cover. These costs include your copays, coinsurances, and your deductibles. Some plans offer prescription drug plans and dental, vision, and hearing coverage. Even if you pay an out-of-pocket premium, you may get your money back and more upon your first hospitalization. 

Learn more about medicare supplements.