Medicare & Supplemental Insurance: 101

Medicare is a federal health insurance program for people 65 and older, as well as some younger people with disabilities. Supplemental insurance, also known as Medigap, is private health insurance that can help cover the costs that Medicare doesn't cover.

Medicare Part A covers hospital inpatient care, skilled nursing facility care, hospice care, and home health care. Medicare Part B covers doctor visits, outpatient care, durable medical equipment, and some preventive services.

Medicare Part A is free for most people, but there is a monthly premium for Medicare Part B. The standard monthly premium for Part B in 2023 is $164.90. However, people with higher incomes may have to pay more.

Supplemental insurance can help cover the costs that Medicare doesn't cover, such as:

• Copayments
• Deductibles
• Coinsurance
• Out-of-pocket expenses

There are many different types of supplemental insurance policies available, so it's important to compare before you buy.

Benefits of Supplemental Insurance

There are many benefits to having supplemental insurance, including:

• Peace of mind. Knowing that you have coverage for the costs that Medicare doesn't cover can give you peace of mind.
• Financial protection. Supplemental insurance can help you avoid large medical bills.
• Access to care. Supplemental insurance can help you get the care you need, even if it's not covered by Medicare.

Choosing a Supplemental Insurance Plan

When choosing a supplemental insurance plan, it's important to consider the following factors:

• Your health needs. What kind of coverage do you need?
• Your budget. How much can you afford to pay for premiums?
• Your lifestyle. Do you travel frequently? Do you have a high-deductible health plan?

There are many different types of supplemental insurance plans available, so it's important to compare before you buy.

Common Mistakes to Avoid

When choosing a supplemental insurance plan, it's important to avoid the following common mistakes:

• Waiting too long to buy. As you get older, your health needs may change. It's important to buy supplemental insurance before you need it.
• Buying too much coverage. You don't need to buy more coverage than you need. Supplemental insurance can be expensive, so it's important to find a plan that meets your needs and budget.
• Not understanding the coverage. Make sure you understand what your supplemental insurance plan covers before you buy it.

Finding Help

If you need help choosing a supplemental insurance plan, you can contact the following resources:

• Medicare.gov
• Your State Health Insurance Assistance Program (SHIP)
• A licensed health insurance agent

Conclusion

Supplemental insurance can be a valuable addition to your Medicare coverage. By carefully considering your health needs, budget, and lifestyle, you can choose a plan that meets your needs and helps you avoid large medical bills.