Nearing retirement, we have to face the fact that there are certain “nice-to-haves” and “luxuries” we can do without in our later years, and this is especially true as we approach 65. When we’re not working, we could choose to forgo some of the perks we paid for when employed to have more free time.
New budget additions have made us think twice about how to save money on items like services as well as how to protect ourselves against unexpected expenses that may have a disastrous effect on our savings and budgets. Getting the medical care we desire and/or need and avoiding the astronomical medical expenditures that may accrue as we get older is without a question at the top of the list.
It’s time to confront the facts. We’re not growing any younger, and as we become older, we’ll likely need significant medical treatment at some point (often suddenly). Even a brief stay in the hospital may cost tens of thousands of dollars because of the continuously escalating cost of medical care. Most of us are fortunate enough to have Medicare Parts A and B as our main insurance.
Even though we’ve been paying into the Medicare system for most of our working lives, most of us will still pay at least $110/month for part B in 2010; however, that’s not much to pay for 80 percent coverage of medical bills after some small to moderate deductibles for hospitalization and outpatient benefits, which is a bargain.
Two Main Categories
Medicare Advantage plans, on the other hand, are not supplements since they do not supplement Medicare Parts A and B. Plans under the Medicare Advantage program essentially take the place of Parts A and B of traditional Medicare and are supposed to provide coverage that is at least as good as, if not better than, that provided by the original program.
Rural locations, in particular, are more likely to have sparse networks. As a result, you must visit certain medical facilities and physicians. As a result, private insurance firms may now decide whether or not medical procedures are essential. In addition, many participants discover that the plan contains previously unaddressed gaps in coverage that provide them with coverage that is only similar to that provided by Medicare.
Medicare Plan N provides more comprehensive medical coverage and access to a broader network of providers. Medicare supplements normally cost less than $150 per month in the majority of states and your network is the Medicare network, which is a very comprehensive network of medical institutions around the country that accept Medicare.
If a doctor accepts Medicare, they are likely to accept your Medicare supplement as well. Your Medicare Parts A and B remain your primary insurance policies. As a result, Medicare still has the last say on whether or not your medical expenditures are covered, and the supplement is responsible for covering the rest.
Seeing additional physicians and knowing that most, if not all, of your medical expenditures would be covered are both possible benefits of a Medicare supplement. Even though you will need to purchase a separate Part D insurance plan, you can rest certain that your health care costs will not deplete your savings or bank account.