Supplemental Medicare Insurance : Does it really save you money in the long run?



Traditional Medicare plans provide a significant source of health care coverage for millions of people. However, this government program does not cover 100% of medical and prescription costs. There will be gaps in coverage; therefore, it is wise for the Medicare beneficiary to protect their health by obtaining supplemental Medicare insurance. Although this secondary insurance has a cost, the coverage from this Medigap plan will save you money in the long run.

Traditional Medicare Plans

Certain individuals are eligible for Medicare. Seniors that are 65 or older, and disabled persons under the age of 65. Those that are disabled and receive Social Security benefits will become eligible for Medicare 24 months after being approved for Social Security. Seniors that are approaching their 65th birthday should apply for Medicare 3 months prior to their actual birth date. Medicare has significant limitations and requires the payment of premiums and deductibles. For example, Medicare will pay for up to 90 days of a hospital stay. If the person needs additional care, this will count against the person’s 60 days of lifetime reserve coverage. This 60 days does not get replenished, and this is all that a person has during their life time. Thus, it is critical to avoid using these days up too soon.

Supplemental Medicare Insurance Plans

Private insurance companies recognized the need for some type of supplemental coverage for Medicare beneficiaries.
These companies along with the federal government came up with a plan that would assist people with the gaps in Medicare coverage. Medicare has limitations on hospital stays and doctor visits. The secondary plan, Medigap, will kick in where traditional Medicare stops. This results in savings for Medicare beneficiaries over the long run.

Medicare Part D Coverage

It is necessary to sign up for a prescription drug plan with one of the many Medicare supplemental companies. The cost savings in prescriptions alone make a supplemental insurance policy worth it. The amount of money that a person saves in the long run is significant. The secondary coverage kicks in and picks up the tab for premiums, deductibles, and co pays.




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