What Is Supplemental Health Insurance – Getting Medicare coverage sounds simple, but you need to make sure you get enough coverage to meet your needs at a price you can afford. For those 65 and older, Medicare Parts A and B cover hospital and doctor visits, but what about everything else? This is where supplemental health insurance covers those costly additional expenses that seem to increase as we age.
When you first enroll in Medicare, you can enroll at any time during the year based on your date of birth. After your initial enrollment, if you need to make changes to your existing coverage or add additional health insurance, you must do so during the annual open enrollment period from October 15 to December 7.
Don’t wait until the last minute. Plan now by learning about the additional health insurance you need to cover additional medical expenses as you enter your golden years.
Benefits of purchasing supplemental health insurance
Some people think Medicare is free, but that’s not true. Medicare Part A is free if you have paid Medicare taxes for at least the time while you worked.
If you don’t qualify for free coverage, your premiums will be $259 or $471 per month. There is also a premium of $148.50 per month for Part B. Parts C and D costs vary depending on which plan you select. If your income exceeds a certain threshold, you will pay an income-related adjustment in addition to your plan premium.
While it may sound pricey when you first look at Medicare and supplements, the money they can save you is big. When you consider the cost of deductibles, prescription medications, and coinsurance as well as dental and vision care, the savings you get from purchasing supplemental health insurance are significant.
When purchasing additional plans, check to see if the insurance covers additional needs. Some will provide you with a cash benefit that can be used to pay for lost wages, transportation for medical treatment, food, medicine, or other expenses related to your illness or injury.
What is Medigap?
Medigap means health insurance sold by private insurance companies to fill the “gaps” that Medicare does not cover. To purchase a Medigap policy, you must have Medicare Parts A and B. You will pay Medicare Part B premium and Medigap insurance premium.
Your Medigap policy must clearly state that it is “Medicare supplemental insurance” and must comply with all federal and state laws. Review the policy to make sure you understand its costs and the coverage you will receive. Some policies cover fringe benefits not available through Medicare.
The way supplemental coverage works is that it pays out-of-pocket costs for services that Medicare provides. If you do not purchase a Medigap policy or other supplemental coverage, there is no limit to the amount of out-of-pocket costs.
Types of supplemental health insurance
Medigap is a type of supplemental health insurance available only to those with original Medicare coverage. There are other types of complementary policies available that do not have this limitation.
Dental coverage and vision
Most health care plans in the United States do not include dental and vision care in their policies. Original Medicare also does not cover these services. To ensure that you have insurance coverage, you must enroll in a separate plan for these services.
Some employers offer dental and vision coverage to employees for an additional premium. If you do not have coverage through your employer, you can purchase this coverage through private supplemental health insurance providers.
Critical illness insurance
Critical illness insurance is sometimes referred to as private illness insurance. Insurance helps reduce the financial burden caused by your condition. The policy pays a lump sum cash to help pay for additional costs you incur that are not covered by standard health insurance or disability coverage.
This coverage generally contains a specific list of illnesses you will cover. In order to be covered, you must have a diagnosis shown in the list. If you are still employed, a better option may be disability income insurance.
What Is Supplemental Health Insurance Disability insurance provides coverage for loss of income if you are sick or injured and cannot work. When you’re wondering if this type of insurance is necessary, keep in mind that 90% of long-term disability claims are due to illness. Most of them have nothing to do with work.