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The reason why You’ll need Medicare Supplemental Insurance

According to Merriam-Webster something that’s supplemental is something that supplements, or “completes or makes and addition” to something that lacking. Medicare Supplemental insurance does exactly that. It completes what’s lacking in the insurance that’s offered by Medicare.

If you’re turning 65, or when you yourself have been disabled for 24 months (receiving disability advantages from Social Security), you most likely qualify for Medicare (the government run medical health insurance program for the disabled and older people). The thing is, Medicare doesn’t purchase all of your medical care costs. Following are a number of the costs not included in Original Medicare (Medicare alone):

1. Your Part A Deductible

In 2010, the deductible for Medicare Part A (in-patient hospital insurance) is $1,100. This deductible relates to each “benefit period” that will be 60 days in length. Listed here is an example:

Martha did not need Medicare Supplemental insurance and she had to enter a medical facility for 4 days because she was having some chest apply for medicare online pains and her doctor wanted to perform a procedure to get rid of some arterial blockage. Before any of the bills were paid, Martha had to pay $1,100 as a deductible.

61 days after Martha was hospitalized, she had to return to a medical facility for a separate sickness. Because her 60 day benefit period had passed, she had to pay another $1,100 deductible.

2. Your Part B Deductible

The Part B deductible relates to “out-patient” expenses (like visits with your doctor). This deductible is $155 per year. Because Martha saw her doctor before he admitted her to a medical facility, in a medical facility, she also had to pay this deductible, plus 20% of her doctor’s fees. Martha’s doctor ordered some tests, such as for example an MRI and an EKG. When he didn’t like what he saw, he sent her to view a cardiologist. She also had to pay 20% of his fee.

3. Your Part B Coinsurance

Medicare is really an 80/20 plan. What this means is that Medicare pays 80% of your out-patient expenses and you spend 20%. In this case, Martha had to pay 20% of the doctor’s bills (including the specialists she saw) and 20% of the cost for a lot of her diagnostic tests, like the MRI she received before she was hospitalized.

In Martha’s case, her total bill because of this incident was over $2,400, because she did not need a Supplemental insurance policy. If Martha had Medicare Supplemental insurance, and specifically a Medicare Supplement Plan F, she would not need had to pay for some of these costs. Besides her Part B premium ($110.50 per month in 2010), and her Medicare Supplement premiums (in Martha’s case, it could have been $154 per month), each of Martha’s deductibles and co-insurance could have been paid by the insurance company.

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