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Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance. She has mastered the art of boiling down complicated financial topics for readers to understand. |
While Medicare will cover many of your medical expenses, the odds are pretty good that it won't cover all of them so you may want to consider Medicare Supplement Insurance. What is Medicare Supplement Insurance, and Do You Need it? By Britt Erica Tunick If you are age 65 or older you are eligible for Medicare, the government’s health insurance plan. While Medicare will cover many of your medical expenses, the odds are pretty good that it won’t cover all of them so you may want to consider Medicare Supplement Insurance, which is also known as Medigap. While Medicare Part A covers hospital stays, some health care and even hospice, what it doesn’t cover is coinsurance, long-term hospital stays and deductibles. Similarly, Medicare Part B, which covers routine doctor’s visits, preventative services, some medical supplies and certain types of outpatient services, still leaves you on the hook for deductibles and coinsurance. In fact, at the end of the day, Medicare only covers roughly half of an individual’s healthcare expenses. Given these gaps in coverage, coupled with the fact that many people are on a fixed budget once they retire, if you have both Medicare Part A and Medicare Part B something you may want to consider is Medicare Supplemental Insurance (you must have both Part A and Part B to qualify). Sold by private insurance companies, Medicare Supplemental Insurance picks up the coverage gaps of Medicare Part A and Medicare Part B by covering expenses including coinsurance and deductibles; extended hospital stays; emergency medical care in another country; blood transfusions and coinsurance for hospice or a skilled nursing care facility. Where these policies stop short is coverage for long-term care; dental care; vision; hearing aids; private nursing and prescription drugs. Unlike typical health insurance where family plans are available, an individual Medicare Supplement Insurance policy must be taken out for everyone looking for coverage. However, unlike traditional health insurance plans where insurers used to be able to deny coverage for pre-existing conditions, an insurance company cannot legally cancel a Medigap policy for someone with health problems if the premiums are paid. |
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