Being retired or a senior has its perks and problems. One of the perks you have is you have less financial responsibility because by now, you’re children are all independent. On the other hand, you are also prone to some risks associated with being advanced in years. It is a fact that as you grow older, you become weaker and prone to certain health risks, especially if you haven’t had the healthiest of lifestyles when you were younger.
You might dispel these thoughts, but they are facts that need to be addressed. Also, Medicare does not cover all your health care cost. When you enroll in a Medicare supplement plan, you have more options because it covers what Medicare cannot, saving you the worry where to get your next payment. Now, what is the cost of Medicare Supplement Insurance?
The Cost of Medicare Supplement Insurance
If you are wondering what the cost of Medicare Supplement insurance is, there is no standard premium price. The policy, cost sharing, and coverage are standardized but the premiums are decided by each provider. Therefore, if you want to know the cost of Medicare Supplement insurance, you have to look at each plan that is being offered.
Just to give you an overview, a Medicare Supplement insurance plan has four important parts – premium, deductible, co-payment, and coinsurance.
- Medicare Supplement Premiums – You can choose whether to pay monthly, quarterly, or annually. Basically, the cost of your premiums will be affected by the type of cover you choose – the bigger the cover, the higher the premium. Also, the cost of the premiums varies between insurance providers.
- Medicare Supplement Deductibles – This is the amount you pay for your medical costs before Medicare reimburses you. Some insurance providers have higher deductibles in the plans they offer.
- Medicare Supplement Copayments – This is the amount you pay for certain health services. The cost of some Medicare Supplement insurance plans lets you pay the Part B copayments for emergency and office visits.
- Medicare Supplement Coinsurance – You pay a percentage of the cost for the medical service you receive after Medicare covers a part of the total medical cost.
How Does Medicare Supplement Insurance Work?
Aside from paying your Medicare premiums, you will make a separate payment for the cost of Medicare Supplement insurance premiums. Simply, Medicare is provided by the government, while Medicare Supplement is one of those traditional insurance policies, except that you use it together with Medicare. Before you think that it will be additional expenses for you, consider the benefits of having Medicare Supplement insurance from the following examples.
Victoria and Margaret are two seniors who have different Medicare Supplement plans and received different health care services. Victoria has Medicare Supplement Plan A and has had two doctor visits. Margaret, on the other hand, is enrolled in Medicare Plan F and has been receiving skilled nursing care and doctor visits.
Let’s say that the cost of their Original Medicare is $1,536 for 2 days. In Medicare Supplement Plan A, Victoria will only pay $1,504 because Plan A will pay Part B coinsurance for 2 doctor’s visit, which is 20% of the total Medicare approved cost. In this case, the amount is $32.
On the other hand, Margaret, who is under Medicare Supplement Plan F and received 2 days of skilled nursing care and 2 doctor’s visits, will pay only $24. The total breakdown is below:
• Part A deductible is $1,184
• Part A coinsurance pays $296 for the skilled nursing services Margaret received for two days.
• Part B coinsurance for $32 for 2 days doctor’s visit
Medicare Supplement insurance will cost a premium but the benefits you have when you need it most is priceless. Know more about these different plans, their costs, and how you can use the by contacting Benefit Advisor at Medicare Pathways call 1-866-466-9118 or Click Here for a Quote!