The importance of additional coverage
As described on the "Medicare Overview" page, original Medicare (parts A and B) only cover about 80% of your medical costs, with no out of pocket limit for the year. Therefore, it is imperative to add on additional insurance to cover out of pocket deductibles and coinsurance.
YOU HAVE TWO CHOICES:
Original Medicare + Supplement Policy + Prescription Drug Plan
Option 1 is to select a Medicare Supplement Policy (also known as Medigap) to cover the part A hospital deductible and part B deductible and 20% coinsurance. This is comprehensive coverage with little or no out of pocket cost.
Medigap plan are standardized by CMS, and the most popular plan currently is plan G.
The premiums for Medigap plans are based on your age, so they rise each year.
For part D, most approved insurance companies in your state will have 3 plans to choice from. The plans vary in premium cost and benefit structures.
Dental and Vision is not covered by Medicare, and therefore not covered by Medigap plans either. You must purchase additional dental / vision insurance if desired.
Medicare Advantage (known as part C plans)
Option 2 is to select an all-in-one Medicare Advantage Plan which puts your part A hospital, part B medical, part D prescription drug coverage all together in one single insurance plan.
Many of these plans have $0 monthly premiums, and you pay a copay for various medical services. All plans have maximum out of pocket protection.
Medicare Advantage plans also have rich additional benefits, like Dental and Vision coverage, gym memberships, grocery allowances and many more.
Plans have a network of doctors who agree to accept the plan, and are usually an HMO or PPO.
These plans mirror an employer group plan that you may be used to.
As you can see, you have a multitude of choices to make in this confusing world of Medicare Insurance.
Contact us for a personalized consultation at no-cost, and let us help you evaluate your needs and recommend an appropriate insurance plan for you!