Will a Medigap cover all my health care costs?
While Medicare is a great program providing health care to senior and disabled citizens, it was never designed to cover 100% of its beneficiaries’ health care expenses. Typically, one must pay 20% percent of the incurred Medicare approved medical expenses out of pocket. In addition to the 20% co-insurance, there is also the annual deductible that have to be met before Medicare starts paying.
This is why many beneficiaries decide to get a supplement to original Medicare in order to help pay their medical expenses. Medicare supplemental insurance is by law standardized into eight ‘Medigap’ plans in 2024: Plan A, B, D, G, K, L, M, N. They are offered by private insurance companies and help to pay the costs that are not covered by Medicare for medical expenses. The different plans were created with the individual medical needs and financial budgets of the Medicare beneficiaries in mind.
Note that there are some plans that are not sold any longer. You may however keep a Medigap policy that you purchased in earlier years.
A policy with more coverage is of course more expensive. So, before you decide on a Medigap policy, ask yourself whether, based on your lifestyle, you really need all the coverage it offers, and are willing or able to pay the higher price for it? On the other hand, if you have health related issues, even the best Medigap coverage might not be enough for you. In this case, you may want to look into other private insurance options, such as Medicare advantage plans, a prescription drug plan, or a vision or dental plan.
Good Medicare insurance agents will only recommend you a plan after properly looking at your individual needs. By closely looking at a senior’s medical and financial situation and comparing the total out-of-pocket costs of different insurance options that may fit the client’s needs, a prudent agent may be able to select a plan that makes most sense for you.
When it comes to Medicare supplemental insurance there are not only many plans, but in most areas also many insurance companies to purchase the plan from, so make sure to explore all your options and shop around before enrolling in a plan.
