What Is the Average Cost of Medicare Supplemental Insurance?

What Is The Average Cost Of Medicare Supplemental Insurance 1
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When you turn 65, your life shifts. You now belong to the “retired” category of individuals even if you continue to work. You also now must enroll in Medicare, the federal government’s health insurance plan for senior citizens. One tip: make sure to exercise regularly or have some kind of physical activity in order to keep yourself fit and healthy (it’ll definitely boost your health and help you when applying for supplemental insurance).

Medicare has its shortcomings, though. As you age, your healthcare needs will increase. Yet original Medicare, or parts A and B, cover approximately 80 percent of your healthcare expenses.

You will need some kind of plan to fill in the gap left by the 20 percent that Medicare does not cover.

Medicare Gaps

Increasingly more seniors are seeking ways to fill the financial gap that Medicare leaves. Medicare Supplemental insurance can cover the healthcare costs that Original Medicare won’t touch.

Medicare has four major parts to it:

  • Part A: this covers hospitals stays and most of the services and needs associated with inpatient care
  • Part B: this covers regular clinic visits and all of the associated fees with outpatient care
  • This part is also known as Medicare Advantage. If you do not like the limitations of Medicare, you can find a Medicare private healthcare plan, and this is part C. You still have Medicare and must pay your Part B deductible.
  • Part D: this is your prescription drug coverage

Medicare is the healthcare insurance the government provides. It is not free, though. you still must pay for your deductibles and coinsurance for parts A and B.

Because Medicare does not cover all costs, you may want Medicare Supplemental insurance.

This is what Medicare Supplemental insurance covers:

  • coinsurance or copays for parts A and B
  • deductibles for parts A and B
  • healthcare costs during foreign travel
  • excess costs for Part B
  • the first 3 pints of blood

Your Medigap plan that you select will cover different things. Ten different types of Medigap plans exist A, B, C, D, F, G, K, L, M, and N. Each plan covers different things.

No matter where you purchase your Medigap coverage, the plan will be the same based on the level you select. For example, level L will cover the same things no matter which private insurance company provides it.

Medigap policies are reliable. Insurance companies will renew the policies as long as you consistently pay your monthly premium. The insurance company cannot legally cancel your plan, even if your health declines.

Because you have so many options, you should seek out tips for choosing Medigap plans. Expert advice will help you determine the best Medigap plan for you.

What Is the Average Cost of Medicare Supplemental Insurance? 3

Average Cost of Medicare Supplemental Insurance

The cost of Medicare supplemental insurance will determine which insurance plan you purchase as well. Costs will vary depending on the insurance company you pick and the type of plan you need. Your location will also determine the cost of your plan.

Health insurance companies price out Medicare Supplement plans in three ways:

  • Community-rated: These are plans where the company does not rate the premium based on your age.
  • Issue-age-rated: These are plans where the company bases the premium cost on your age when you purchase the policy.
  • Attained-age-rated: These are plans where your premium will go up as you age.

The insurance company and your particular location will cause prices to vary. Generally speaking though, these are common, average monthly premiums:

  • 1. Plan A: $131-$189
  • 2. Plan B: $160-209
  • 3. Plan C:$186-249
  • 4. Plan D: $168-221
  • 5. Plan F:$185-$250
  • 6. Plan F with a high deductible: $51-$91
  • 7. Plan G: $160-$210
  • 8. Plan K: $57-$116
  • 9. Plan L: $111-$171
  • 10. Plan M: $173-$192
  • 11. Plan N: $121-$181

The cost varies greatly because the benefits vary. If you’re looking for a Supplemental Health insurance plan that covers specific needs like dental or vision, you will find different prices.

For example, a monthly premium for a senior dental plan will cost $15.25 for basic coverage and $35.50 for Premier coverage.

A monthly premium for a senior vision plan will cost around $10 for individuals and $18 for couples. A senior combination plan with dental, vision, and hearing will cost around $21 a month.

Compare Plans

Your senior fixed income will make the lowest cost the most tempting. However, you must focus on more than the premium cost of the Supplemental Medicare plans out there. Look for the plan that you can afford that offers the gap coverage you need.

When you’re looking at plans, look for the following coverage:

  • 1. Part A coinsurance costs
  • 2. Part A deductible
  • 3. Part A hospice care coinsurance or copayment
  • 4. Blood transfusions
  • 5. Part B coinsurance or copayment
  • 6. Part B excess charges
  • 7. Part B deductible
  • 8. Out of pocket limit
  • 9. Foreign travel emergency

Medicare Supplemental Insurance

These are all costs the Original Medicare does not cover. If you cannot afford them on your fixed income, look for a supplemental insurance plan that can cover them.

If you have a health condition that traditionally has affected your insurance premium, make sure you apply for a Medicare Supplement insurance plan at the right time. There is a specific Medicare Supplement Insurance Plan Open Enrollment Period. Shortly after you turn 65, you must apply for this insurance if you want the best possible premium.

During the open enrollment period, insurance companies cannot turn you down because of your health condition. The open enrollment period begins the month you turn 65 and enroll in Medicare part B. The window stays open for six months.

If you do not apply during this period, you will have to go through medical underwriting. This process can lead to high premiums, especially if you have a health condition when you apply.

You may also have to endure a waiting period before coverage begins.

Research and Save

The average cost of Medicare Supplemental insurance varies from as little as $70 a month and as high as $250. A variety of factors determine the cost.

If you need supplemental insurance, take the time to read about the plans out there. Make sure you enroll in the six-month window after your 65th birthday to receive the best possible premium price. When you research your options, you will save money.

For the most helpful articles on the internet, keep visiting our site.

Bonus video: Medicare Explained 2021 Medicare Part B & Medicare Part A (and Supplements)

What Is the Average Cost of Medicare Supplemental Insurance? FAQs

Is supplemental medical insurance worth it?

If you want to live healthily – yes

Is AARP supplemental medical insurance any good?

It has an A+ rating, which means that AARP supplemental medical insurance is really good.

What is the most popular medicare supplement plan for 2021

The most popular medicare supplement plan for 2021 plays F. This plan includes a comprehensive policy that will leave you not having to worry about day-to-day expenses such as paying a copay for a doctor

Thank you for reading!