Original Medicare does not have an out of pocket maximum for co-insurance. What this means is you will pay 20% of the bills with no end. This could be devastating to your finances. It is my #1 reason to have either a medigap (supplement) or Medicare advantage. Both limit that obligation.
There are several things to consider. #1 You could be opening yourself up to multiple deductibles due to the fact that a new Part A deductible could be assessed each benefit period (60) days. #2 there is no maximum out of pocket expense on the 20% you would be responsible for. Original Medicare only covers 80%, you are responsible for the 20% with no cap, each and every year.
Without a Medicare supplement you will be responsible for what original Medicare doesn’t cover. Ther is no maximum out of pocket. You pay a high deductible for hospital stays and 20% co-insurance. Extended care in a skilled nursing facility could lead to substantial out of pocket costs. Your premium for a supplemental will cover the 20% of what Original Medicare doesn’t pay and you will have less out of pocket expenses l.
I have a client who if she had went with her first choice of a Medigap plan her annual cost would be around $2,400. She decided to take a less expensive route and enrolled in a Medicare Advantage plan. She was diagnosed with a health issue requiring a doctor to administer shots in her eye every quarter for the remainder of her life. This cost is reaching her out of pocket maximum of $5,500 which is more than twice the annual cost of her supplement. In this particular case it would have been more cost effective for her to have been on the Medigap plan costing her $2,400 per year.
Original Medicare (Part A and Part B) covers 80% of your Medicare covered hospital and doctor bills. A Medicare Supplement plan helps cover the other 20%. When you ONLY have original Medicare (Part A and Part B), your financial risk is having to come up with 20% of all of the Medicare bills you might incur.
Medicare Parts A (Hospital) and PartcB (Doctors) are a wonderful provision that helps care for those turning 65.
The danger financially of you do not have a Medicare Supplement or Medi-Gap, each person is subject to the following:
Hospital stay deductibles multiple tinnes each year for different health issues.
Doctor deductible.
A & B is a 80/20 plan.
Thus without a Medi-Gap plan you would have no small co-pay per visit and would be responsible for 20% of treatment costs.
Their are many other CO-payments.
Their is no coverage for:
Prescription
Dental
Vision
Hearing
Unless part of another health condition.
Call myself or anyone of many Certified Healthcare Professionals, educated, certified and trained to aid you select the plan that fits your needs and budget.
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The part A deductible $1632 for inpatient hospilization, the co-pays for any stay longer than 60 days. Then the most likely and biggest risk is the part B 80%-20%. Meaning you pay 20% of your outpatient services provided with no cap on your exposure.
As I tell everyone that stays with just Original Medicare, I do not advise it due to the fact that there is NO STOP LOSS. And you still have to have a Part D plan.
Medicare Parts A and B pay 80% of the value of any sanctioned procedure. By not picking up a Med. Supplement, the remaining 20% is coming out of your own pocket. If it is a big expense, why would you NOT wish to have it paid for??
Without a Medigap plan, you will be subject to 20% coinsurance of charges that Medicare doesn’t cover. It may seem insignificant for a doctors office visit but it can be very costly if a catastrophic event occurs or hospitalization or a surgery is necessary.
Sticking with Original Medicare poses a significant financial risk. Without a Medigap plan, you're responsible for the full amount of the Part A deductible and 20% coinsurance for Part B expenses.
Medigap plans typically cover these costs as well as potentially extended hospital stays beyond Medicare's 60-day limit.
Original Medicare has no out-of-pocket maximum, meaning your costs can continue to accumulate over time without a Medigap.
Original medicare does not have a maximum out of pocket. Your bills will continue to come in as its used. Its not 100% medical protection. medicare supplement(medi gap) picks up what original medicare does not in terms of medical bills.
Original Medicare covers 80% of the costs of Hospitals and Doctors...the value of a MEDIGAP PLAN is that your exposure for the other 20% is covered. Why not consult with an Independent Broker who charges NO FEE for showing you all of the options available to protect you from the 20% exposure you have.
Only having Original Medicare may seem like a logical decision, you are able to be treated by any hospital or doctor who accepts Medicare, so there is no network you need to take into account when finding medical care. The problem is the cost associated with Original Medicare. Without a Medigap Plan, sometimes called a Medicare Supplement plan, you will have deductibles and coinsurance on both Part A and Part B services. Here is the breakdown:
Part A
-Deductible=For each benefit period (starting with a hospital stay), the deductible is $1,676.
(* A benefit period ends when you have not received inpatient hospital care in 60 consecutive days, after this period ends you will need to pay the deductible again if your are admitted to the hospital*)
-Co-Insurance= $0 for days 0-60 $419 per day for days 61-90 $838 per day for days 91 and beyond.
Part B
-Deductible=The annual deductible is $240.
-Coinsurance=Generally, you pay 20% of the Medicare-approved amount for most services after you meet the deductible
The major risk is the UNCAPPED 20% coinsurance for Part B costs. Medicare picks up 80%, and you take on the 20%. So let’s take a cancer diagnosis with 6 months of chemo. There could easily be $1M or more in Part B costs, which means you are paying $200,000! This is how medical debt happens.
Good news, there are ways to make sure you NEVER have to be exposed to the 20%, and please reach out so we can educate and then get you the right products so thus never happens to you.
The financial risk of sticking with Original Medicare without a Medigap plan is that there's no out-of-pocket maximum, meaning your healthcare costs could be substantial if you experience a serious illness or injury. Without Medigap, you're responsible for 20% of Medicare Part B costs, plus deductibles for both Part A and Part B, and potentially costs for services not covered by Medicare.
Here's a more detailed breakdown:
No out-of-pocket maximum:
.
Original Medicare (Part A and Part B) doesn't cap your yearly expenses. This means you could face large bills for coinsurance (the 20% of Part B costs), deductibles, and potentially uncovered services.
20% coinsurance for Part B:
.
After you meet your Part B deductible, you're responsible for 20% of the Medicare-approved amount for doctor's visits, outpatient procedures, and other services.
Part A deductible:
.
For each hospital stay, you have a deductible (currently $1,632 in 2024) that you must pay before Medicare starts to pay.
Limited coverage for skilled nursing:
.
Original Medicare has limited coverage for skilled nursing facility stays, and it doesn't cover long-term care services like assisted living or custodial care.
Vision, hearing, and dental not covered:
.
Original Medicare does not cover routine vision, hearing, or dental services.
Medicare covers 80%, no cap on the other 20%. So hospital bills could be a huge financial risk, along with the hospital deductibles are high. 1676.00 for first admittance per year. plus additional if you are readmitted throughout the year.
Get a medicare supplement plan. Call me to go over your options. 737-530-4626 op 2. Gary Henderson [email protected]
There is a GREAT risk if you don't have what they call secondary coverage like a MediGap plan. Medicare covers 100% of the Part A (Hospital) coverage, but with Part B (physician services) it only covers about 80%, the other 20% is what you risk if you don't have a MediGap plan. Also...there is NO LIMIT to the amount of money you are responsible for with that 20%.
Original Medicare has deductibles and co-insurance that is required to be paid by the beneficiary. Medicare pays 80% of approved charges after the deductibles, leaving the beneficiary with the remaining 20% to be paid out of pocket. The benefit to having a medigap plan (Medicare Supplement) is to pay the Part A deductibles and coinsurance as well as the Part B coinsurance on your behalf.
Medicare is a straight 80/20 plan with deductibles on A & B. Medigap plans lower that potential out-of-pocket and eliminate the A deductible. If you're eligible for a plan F medigap, you also eliminate the part B deductible.
Navigating Medicare choices is an important decision, and opting for Original Medicare without a Medigap plan can expose you to significant out-of-pocket costs. Without Medigap, you are responsible for covering the Part A deductible, as well as 20% coinsurance for Part B medical expenses.
Medicare Part A Costs for 2025
• Deductible: $1,676 per benefit period (the amount you pay before Medicare begins covering hospital costs).
• Hospital Stay Costs:
o Days 1–60: Medicare covers your stay at no cost.
o Days 61–90: You’ll pay $419 per day.
o Beyond 90 days (Lifetime Reserve Days): You’ll pay $838 per day, up to 60 reserve days over your lifetime.
Medicare Part B Costs for 2025
• Coverage: Outpatient care, including doctor’s visits, preventive services, scans, and tests.
• Standard Monthly Premium: $185.00.
• Annual Deductible: $257, meaning you must pay this amount before Medicare Part B begins covering services.
• Coinsurance: After meeting the deductible, you’ll be responsible for 20% of covered medical expenses.
Planning ahead can make a huge difference in your financial security and peace of mind. If you have any questions or need further guidance, please don’t hesitate to reach out—we’re here to help! Feel free to email us at [email protected].
The risk is being subjected to deductibles on Part A and B and 20% coinsurance on medical bills. The coinsurance on a $100,000 medical bill could be as high as $20,000. A Medigap plan is not required as one could also go with Medicare Advantage Plan.
Original Medicare is subject to Part A and Part B deductibles as well as no maximum out of pocket protection. Not to mention no prescription drug coverage. If you don’t have a good agent or broker helping you navigate through your Medicare choices, you could experience significant negative financial impact long term.
The biggest risk is Out of Pocket Maximum. Original Medicare does not have a ceiling. Should you be faced with an unfortunate diagnosis - the sky is the limit as far as your responsibility. Even if you simply want the protection of an Out of Pocket Maximum a Medicare Advantage is a way to protect yourself financially.
Staying with Original Medicare without a Medigap plan can lead to significant financial risk, as it means you're responsible for paying a portion of your healthcare costs, including deductibles, copays, and coinsurance. Without a Medigap plan, these costs can add up quickly, especially if you need a major hospital stay or have ongoing health issues.
Sticking with Original Medicare without a Medigap plan carries significant financial risk due to potential out-of-pocket expenses. Original Medicare has deductibles, copays, and coinsurance, and it lacks an out-of-pocket maximum, meaning expenses can continue to rise without a limit.
A Medicare supplement plan can help cover most of the portion of Medicare that typically isn't covered, providing peace of mind and predictability. Working with a local agent is the most efficient way to determine what plans are available in your area, and what options would best fit your healthcare needs!
It is financially risky to have Original Medicare with no Medigap plan as Original Medicare has no maximum out of pocket. This means there is no cap to your medical expenses. This could potentially lead to hundreds of thousands in bills. It is always recommended to have either a Medigap or a Medicare Advantage plan to pair with Original Medicare to ensure you have a cap to your out of pocket medical costs.