Medicare Supplemental Insurance : Which plans are best for you?

Choosing which Medicare supplemental insurance plan is right for you means considering all the financial aspects of it. How much premium can you afford? How much are you willing to pay out of pocket for medical bills? Do you prefer to know everything is covered 100%? These are all things to consider when choosing the right plan.


The first choice you have to consider is the amount of coverage you want. Medicare does not cover 100% of all medical bills. Therefore you have to decide how much you are willing to pay out of pocket. Some Medicare supplemental insurance plans have deductibles and coinsurance of their own. That means they do not pay 100% of what Medicare leaves behind. There are plans that do pay 100% of what Medicare allows, but leaves behind for you.


The premium, or payment you pay to have supplement insurance, is driven by the amount of coverage. The more coverage you have the higher the premium. For instance, if you have a supplemental insurance plan that has a deductible or coinsurance (meaning they pay a portion after Medicare and you pay a portion) the premium price will be low. If you have a plan that covers 100% of Medicare allowable (meaning the amount Medicare approved, but left for you) then the price of premium will be higher.


You will need to sit down and figure how much you can afford monthly. Know upfront what you are comfortable shelling out for a premium. Next decide how much you are willing to pay in medical bills. Consider whether you would rather pay a higher premium and know that your medical bills are covered at 100% compared to less monthly premium, but more out of pocket in medical expenses. With 100% coverage, you know exactly what you will be paying out monthly, regardless of how many trips to the doctor or hospital you make. If you have less coverage, you risk having more out of pocket expenses, but less premium to pay.

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