Is Medigap Worth It?

Medigap or Medicare Supplemental Plan is a health insurance plan that is bought as a supplement to the Original Medicare Plan. It is helpful as it covers the co-payments, co-insurances and deductibles of Medicare and provides with extra coverage and financial security to the person.

It is basically bought to fill in the crevices of original Medicare and pay for the expenses that Medicare doesn’t cover. It also pays for the remaining 20% of medical expenses that are to be covered by Medicare. It is to be noted that a Medigap policy cannot provide with added benefits or coverage that are not present in the original Medicare Plan.

Buying a Medicare Supplemental Plan can be very helpful for people because it minimises medical expenses. It also decreases the cost by paying for co-payments, co-insurances and deductibles. Some also provides with travel coverage and covers the bills of doctor visits.

However, many do ask the question whether it is really worth it to spend extra money on a Medicare Supplemental Plan.

Medicare alone covers 60 days of hospitalisation and some plans cover 80% of all approved costs of hospital visits, medical tests and also IV medications when given to you in a hospital or nursing home. By approved, I mean approved by Medicare and no health care provider accepting Medicare can charge you any more than what Medicare approves. Usually these 20% charges that you have to pay yourself are not that high that you’ll require an additional insurance policy for that.

A Medigap Plans will at least cost you $200 per month i.e., $2,400 per year. Which means you’ll require a lot of doctor visits, CT scans, MRIs, doctor’s visits, blood tests, X-rays, ER visits etc. On an average you’ll need these things the below mentioned number of times to make a Medicare Supplemental Policy a good deal:

— If you get about 20 MRIs in a year

— Or about 25 CT scans each year

— Or go to a doctor’s office twice a week and 100 times in a year

— Or if you get your blood tested through a standard blood test about 500 to 1,000 times in an year

It is very unlikely that you’ll need that kind of medical care to be able to use up that amount. It’ll be a better plan to save that money for a rainy day than to give it to an insurance company. Most individuals don’t need to go to a health care provider that much. However, if you have been diagnosed with a serious illness which requires a lot of hospital visits, then keeping you Medigap plan will be a better option for you.

A healthy individual who is not expected to go to a health care provide more than an average person can do without a Medicare Supplemental Plan.