Do You Really Need Medicare Supplement Insurance?
Medicare helps seniors cover medical costs that could quickly spiral out of control. However, Medicare itself does not cover all costs. You'd still have co-pays, some co-insurance, and prescription costs, for example, and those can add up. If you're on a fixed retirement income that isn't that big to begin with, the out-of-pocket costs can be rather daunting to think about.
Medicare supplement plans help cover a lot of those costs. You'd still have premiums and still need to cover some costs, but what you'd pay would be reduced greatly. Still, if you're currently healthy, you might think that going without a Medicare supplement plan would be OK for now so you can save some money. You may want to consider these three issues before assuming you don't need a Medicare supplement plan.
You Do Not Know What Your Future Medical Needs Will Be
You're healthy now, but you don't know how long you'll live and what health issues could pop up in the meantime. If you suddenly have to cover a lot of co-pays and prescription costs, that could make life more uncomfortable for you both financially and psychologically. The stress of the added costs can really wear on your mind. Purchasing Medicare supplement plan lets you avoid that stress.
You Are Guaranteed Coverage if You Apply in a Certain Time Frame
Supplemental Medicare insurance has an open enrollment period, and if you apply during that time, you are guaranteed coverage. The open enrollment period is usually six months after you become eligible. However, if you try to enroll after the open enrollment period closes, you aren't guaranteed coverage. In other words, you could apply but not be approved for a plan. That means all those co-pays and prescription costs would be yours to cover whether you wanted them or not.
You Don't Know How Medicare Coverage Will Change
Medicare coverage is not really set in stone. While aspects of the program seem to stay the same each year, other parts change. For example, as of 2020, Medicare supplement policies generally can't cover deductibles for Part B Medicare. You don't know how coverage will change from year to year, and even if you were to be approved for supplemental insurance outside of the open enrollment period, you might apply at a time when the benefits for new enrollees are even fewer than they are now.
Supplemental Medicare coverage, as optional as it might seem, is really not optional. You'll miss out on many benefits if you don't sign up when you're first eligible.
To learn more, contact a resource that offers Medicare supplement plans.