Medicare is the government insurance everyone 65 and older is qualified for. What many people don’t realize is Medicare only pays for part of the medical expenses of those insured. While Medicare part A is free insurance, it only pays for expenses incurred in a hospital stay and then only 80%, the rest is up to the insured.
Medicare part B is the part of Medicare that pays for doctor visits, but Medicare part B cost the average insurer about $140.00 a month. Money that if you are receiving Social Security is taken out of your check before the government gives it to you. Like Medicare part A, it only pays about 80% of a person’s expenses. That leaves seniors having to pay many of their own health care costs.
In order to offset the gap in insurance coverage, many seniors take out an extra insurance plan known as a Medigap plan. There are ten different Medigap plans to choose from they are lettered A through N. They are all standardized plans with the same kinds of coverage. The only difference is the cost you pay and that depends on who you buy your plan from. In order to have Medicare supplemental insurance, you must have Medicare parts A and B.
One of the more popular plans with consumers is Medicare supplement plan N. It pays for many of the things Medicare parts A and B do not. It will pay for 100% of the co-insurance fees of Medicare part B, it will not pay for the $20 co-payment at the doctor’s office or a $50 emergency room fee. Most people consider this a small price to pay.
One of the more important features of a Medicare supplement plan N is that it will pay the coinsurance for a skilled nursing facility. The compensation of Medicare part B and Medigap plan N can save someone thousands of dollars. Since you never know when you might need to go to a nursing facility it is good insurance to have.
If you need to have a blood transfusion while in the hospital Medicare part N will pay for the first 3 pints. It will also pay for the co-insurance expenses for another 365 days after Medicare part A coverage has ended.
While there are many advantages to a Medicare supplement plan N there are also disadvantages. It will not pay for excess charges for Medicare Part B services. The amount part B will pay is already pre-approved by the government, but doctors are allowed to charge as much as 15% above that. To some people that is acceptable depending on your income or frequency of doctor visits, it may not be.
When deciding on a Medicare supplemental insurance plan you should talk to an insurance professional to explore all the plans and what they offer. If you need prescription drug coverage, dental, or vision care you may want to consider one of the other supplemental plans.
Medicare is a great program; it helps millions of seniors to get the medical services they need. Having the correct Medigap supplemental insurance plan is also important. Everyone about to turn 65 should talk to an insurance professional about finding the correct supplemental insurance plan that is right for their needs as well as their budget.