Is supplemental Medicare insurance a waste of money?

If you are enrolling in Medicare for the first time, you might be surprised to know that the hospital and medical insurance isn’t entirely free. It covers a great portion of your healthcare costs, but it does not cover everything. You will still be required to pay for the deductibles, copayments, and coinsurance out of pocket.

You might wonder if Medicare insurance is a waste of money or not as you need to pay the remaining balance after covering only a portion of medical costs.

In this article, we will discuss supplemental Medicare insurance and whether it is worth it or just a waste of money.

What are supplemental Medicare plans?

The Original Medicare includes Medicare Part A and Medicare Part B. The federal government covers the medical and hospital expenses under these plans. However, you still have to pay for expenses that are not covered by Medicare out of your pocket. 

Supplemental Medicare plans are insurance plans sold by private insurance companies. You pay to Medicare in addition to the Part B premium and you will be responsible for paying a monthly premium to the insurance company for your Medigap plan. 

Is supplemental Medicare insurance a waste of money?

When it comes to health, it is better to be future-ready with extra steps towards protection. It may not be enough to just have Medicare to help you deal with the massive medical bills. As discussed, Medicare only conceals a portion of medical expenses. 

To equipoise, the cost, approximately 14.1 million people, i.e., 23.5% of Medicare beneficiaries purchase Medicare supplement insurance. 

Original Medicare does not cover additional services like traveling outside the US, but Medicare supplement plans cover such services. In specific circumstances, insurance companies can refuse applicants for supplement policies with preexisting health conditions. The good part here is that if you meet certain criteria you may qualify for a guaranteed issue policy. 

Depending on your healthcare needs, investing in supplemental Medicare insurance can be a sensible investment. The best time to invest in a healthcare insurance policy is during the six-month Open Enrollment Period.

The amount you will pay for supplemental Medicare insurance will allow you to save on your healthcare costs. With a worthwhile supplement Medicare policy, you will find a lot more financial stability and peace of mind. 

Medicare supplement insurance policies are accepted everywhere, which implies that you will be able to easily find specialists in your area and also keep your preferred providers. 

The supplemental Medicare insurance plans are regulated by the federal government, but it does not regulate the policy cost. It must be considered that policy rates will vary for every insurance company and state. 

Few points to remember when it comes to Medicare Supplement insurance:

• It covers your out-of-pocket costs with Original Medicare
• It works with Medicare Part A and B
• It doesn’t cover prescription drug costs or Part D of Original Medicare
• It can be used with any private provider who accepts Medicare
• The services not covered by Medicare are not covered by Medicare Supplement insurance. 

If you are looking for a Medicare Supplement policy, it is advisable to compare all the plans offered by different companies to avoid overpaying. Here, the trick is to check the prices as per the features offered along with. 

Before going for any supplement Medicare plan, consider your financial situation and your healthcare needs. As the benefits of plans may vary according to your needs.