Why is Additional Insurance Needed with Medicare?

When you’re covered by Medicare, you have widely accepted healthcare insurance. However, Medicare seldom covers all of your medical expenses. Therefore, it makes perfect sense to consider purchasing additional health insurance to reinforce your Medicare coverage. Here are the options:

1. Medigap (Supplemental Insurance): Medigap plans, also known as Medicare Supplement Insurance, fill the “gaps” in Medicare Part A and Part B. These plans cover deductibles, coinsurance, and copays. For instance, Medicare Part A has a deductible of $1,632 in 2024, which you owe before Medicare starts paying for inpatient hospital care. Most Medigap plans cover this deductible. Additionally, after meeting your deductible, there are out-of-pocket costs for many Medicare services, such as a 20% coinsurance for most medically necessary outpatient services covered by Part B. Medigap policies include coverage for Part A and Part B coinsurance and copays, potentially resulting in significant out-of-pocket savings.
2. Medicare Part C (Medicare Advantage): Medicare Part C, also known as Medicare Advantage, offers an alternative way to receive your Medicare Part A and Part B covered services through managed care organizations. These plans often include additional benefits that Original Medicare doesn’t cover, such as prescription drug coverage, dental, and vision services.

Ultimately, the choice depends on your individual needs, preferences, and budget. While Medigap provides comprehensive coverage, Medicare Advantage plans may offer additional perks beyond what Original Medicare provides. Consider your healthcare needs and compare the options to make an informed decision. Remember that Medicare does not cover everything, including dental, vision, or prescription drug costs. So having additional insurance can be beneficial for comprehensive coverage. If you need help understanding your options, please reach out to the Kempel Agency MEDICARE Solutions for personalized guidance. Call today (815) 801-7010.