What’s the financial risk of sticking with Original Medicare without a Medigap plan?
Answered by 3 licensed agents
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.
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.
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.
Tags:
Advice for Seniors
Medicare Part A
Medicare Part B
Medicare Supplement
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