What is Medicare Supplement Insurance? Supplement insurance, or Medigap insurance, is just like it sounds: insurance that fills in the gaps. For example, in the scenario above, this type of insurance would kick in and cover the $12,000 that original Medicare doesn't cover. Roughly 24% of all beneficiaries on Medicare purchase Medicare supplement Insurance What's Included in Medicare Part A and B? If you're on original Medicare, this means that you're on both Medicare Part A and Part B. Medicare Part B covers about 80% of the costs for approved: • Doctor services • Medical equipment • Outpatient therapy On top of the 20% of the costs, you'll be required to pay a deductible of just over $200 in 2021. While you may not pay for Medicare Part A, you will be responsible for paying for Part B if you want this additional coverage. Supplement insurance is sold through private insurance companies and will offer additional coverage, such as: • Costs of doctor visits • Services rendered outside of the US Insurance companies cannot disqualify you from these programs based on preexisting conditions either. Cost of Medicare Supplement Insurance Is this type of insurance worthwhile for you? It depends. You'll be required to pay additional money to these programs, and they can be very expensive. While the average person paid $152 per month for supplemental insurance in 2018, prices may be much higher for the individual. Depending on multiple factors, the cost of these plans can range from $50 to $650. Factors that contribute to the overall cost are: • Age • Location • Deductible However, some individuals may benefit from state programs that offer to pay for some or all of these costs. Often, low-income individuals will qualify for state assistance, so they'll benefit from low or no cost for their supplemental insurance. Additionally, there may be options to help cover the cost of prescription medications, too. When considering whether signing up for one of these programs is the right thing to do, it's important to note that Original Medicare does not have a limit on out-of-pocket expenses. So, you'll continue to pay 20% out-of-pocket whether the bill is $200 or $2 million. There are options outside of Medigap, such as Medicare Advantage plans that will roll Part A and B into one plan as well as offer prescriptions for free. Medicare supplement insurance is often a good choice if you don't have coverage through a union or employer and you're enrolled in Original Medicare.

Is Medicare Supplement Insurance Right For You?

Medicare is available for people who are 65 or older or individuals that suffer from disabilities. Original Medicare, which is more of a basic form of the program, provides just the most basic form of coverage.

While original Medicare covers most of your medical and hospital bills, you’ll still have to pay for 20% of approved doctor treatments.

If you’re in the hospital for even three days, the cost of the hospital stay can be as much as $60,000. Paying 20% of these costs still leaves you with a $12,000 bill that you need to pay.

Medicare supplement insurance can help.

What is Medicare Supplement Insurance?

Supplement insurance, or Medigap insurance, is just like it sounds: insurance that fills in the gaps. For example, in the scenario above, this type of insurance would kick in and cover the $12,000 that original Medicare doesn’t cover.

Roughly 24% of all beneficiaries on Medicare purchase Medicare supplement Insurance

What’s Included in Medicare Part A and B?

If you’re on original Medicare, this means that you’re on both Medicare Part A and Part B. Medicare Part B covers about 80% of the costs for approved:

  • Doctor services
  • Medical equipment
  • Outpatient therapy

On top of the 20% of the costs, you’ll be required to pay a deductible of just over $200 in 2021. While you may not pay for Medicare Part A, you will be responsible for paying for Part B if you want this additional coverage.

Supplement insurance is sold through private insurance companies and will offer additional coverage, such as:

  • Costs of doctor visits
  • Services rendered outside of the US

Insurance companies cannot disqualify you from these programs based on preexisting conditions either.

Cost of Medicare Supplement Insurance

Is this type of insurance worthwhile for you? It depends. You’ll be required to pay additional money to these programs, and they can be very expensive. While the average person paid $152 per month for supplemental insurance in 2018, prices may be much higher for the individual.

Depending on multiple factors, the cost of these plans can range from $50 to $650. Factors that contribute to the overall cost are:

  • Age
  • Location
  • Deductible

However, some individuals may benefit from state programs that offer to pay for some or all of these costs.

Often, low-income individuals will qualify for state assistance, so they’ll benefit from low or no cost for their supplemental insurance. Additionally, there may be options to help cover the cost of prescription medications, too.

When considering whether signing up for one of these programs is the right thing to do, it’s important to note that Original Medicare does not have a limit on out-of-pocket expenses. So, you’ll continue to pay 20% out-of-pocket whether the bill is $200 or $2 million.

There are options outside of Medigap, such as Medicare Advantage plans that will roll Part A and B into one plan as well as offer prescriptions for free.

Medicare supplement insurance is often a good choice if you don’t have coverage through a union or employer and you’re enrolled in Original Medicare.

Growth Predicted for Life Insurance Market

Recent data reveals only 46% of consumers have individual life insurance, and that more than 3/4 of consumers age 25-64 say they would benefit from more close guidance from financial services professionals in adding that important voluntary benefit.

Related Post: US Health Spending Expected to Grow 5.8% Annually

  • According to LIMRA, half of consumers prefer to buy life insurance face-to-face through a financial professional.
  • Consumers want an adviser who will educate, listen and gain trust.
  • Research shows employees under age 45 prefer to purchase online.
  • 60% of those surveyed say they own group life insurance, but coverage is less than individual policies and is only in place while the person is employed.
  • A quarter of consumers studied say they have no life insurance at all.
  • LIMRA reports 4 in 10 life insurance shoppers are prompted to start shopping for life insurance due to life events such as marriage,  divorce, having or adopting a child, buying a home, or experiencing the death of a relative or close friend.

Related Post: 2014 Ends With Strong Employment Numbers

“Life insurance is the one product that can help families keep a roof over their heads, provide for basic living expenses and allow time to recover and heal from the loss of a loved one,” says Robert Kerzner, president and CEO of LIMRA. “LIMRA’s research shows that people do not fully understand the risks they take by not having adequate life insurance coverage.”

Read the full article by Nick Otto here.

Please keep in mind that ClaimLinx can write life insurance policies as well as individual, surgery, accident and dental policies. Contact us for more information.

Benefits of Supplemental Critical Illness Insurance

Tom Quigley, Vice President/National Business Consultant, provides consulting services, and is in charge of recruitment and new business for ClaimLinx.

Tom is discussing how ClaimLinx is incorporating supplemental insurance into their product line.  Our focus today is on supplemental critical illness/hospital indemnity policies. What do these policies cover, and how much do they cost?

Related Post: Is supplemental coverage right for your company?

Supplemental critical illness/hospital indemnity policies pay you a lump sum that you can use to cover things such as lost wages or experimental treatment.  You can buy supplemental critical illness/hospital indemnity policies even if your doctors aren’t in the network, and you can visit any licensed doctor.  Depending on the product, the employer may allow an employee to run it through payroll and buy it with pre-tax dollars.

To find out more about supplemental coverage from ClaimLinx, please contact us at sales@claimlinx.com.

Related Post: Start a path to savings on insurance

ClaimLinx is positioning its clients to move in the right direction. We can structure benefits in your favor to ensure you are in full compliance with the law without cutting benefits or employees. Please contact us at at sales@claimlinx.com or(800) 858-1772 X 25 with your questions.  Our book, “How to Beat Obamacare” is available for purchase on amazon.com.