If you’re like most people, you’ve got some medical bills piling up that are just too high to pay. The good news is that there are several options available for you to lower your monthly out of pocket expenses. Medicare Supplement plans are one of those options and can be very helpful in lowering your overall medical costs. But how do you know if you need a Medicare supplement plan? And what exactly is a Medicare supplement plan anyway?
How Does it Work?
A Medicare supplement plan is designed to help cover some of the cost of your medical care when you reach retirement age. You pay a monthly premium, which is usually between $30 and $100 per month. This premium is then used to pay for your medical expenses. It’s similar to a private insurance policy, except you are not insured by an insurance company. Instead, you are insured by the federal government.
What Are My Options?
There are two basic types of Medicare supplement plans. You can choose either a “Part A” or a “Part B” supplement plan. Part A plans will cover all of your hospital and doctor expenses, while Part B plans will only cover your doctor expenses. There are also other options available such as Medicare Advantage Plans and Medicare Part D Prescription Drug Plans.
If you have a choice, it’s generally recommended that you get a Part B supplement plan. This will allow you to have access to a wider variety of doctors and hospitals. However, if you are already in a position where you have no other option, you may want to consider a Part A supplement plan.
What Is the Benefit?
As stated above, the benefit of a Medicare supplement plan is that you are paying a monthly premium instead of directly paying your medical bills. This allows you to save money on your medical expenses. In fact, a recent study found that individuals who had a Part A supplement plan saved over $2,000 per year compared to those who did not have a supplement plan. That’s a huge savings!
So What Else Do I Need to Know?
There are a few things that you should know about Medicare supplement plans. First of all, you must understand that they are not free. In order to be eligible for a Medicare supplement plan, you must meet certain income requirements. The amount of the monthly premium will vary depending on these income requirements.
Another thing you should know is that there are different plans available for different situations. If you are self employed, you may find that you qualify for a higher level of coverage. Also, if you have a spouse who is not covered by Medicare, you may find that you can add them to your plan for a small additional premium.
Finally, there is something called the “Medicare Saver” rule. This rule says that if you have a supplemental insurance plan and your total medical expenses exceed 10% of your annual income, you will not be required to pay the deductible on your medical expenses. For example, if you have a supplemental insurance policy that costs $100 per month, and you have medical expenses of $1,500 per year, you would only be responsible for paying $150 per year in medical expenses, even though your total medical expenses are over $1,500.
