Being on Medicare is great, right? Well, yes and no. Being on Medicare is great because the monthly premiums are affordable. Medicare Part A has no monthly premium and Medicare Part B has a 2009 premium of $96.40. This is great compared to what an individual health insurance policy would cost for someone that age and there are no exclusion for pre-existing conditions with Medicare.
Being on Medicare is not so great when you consider that Medicare Part A has a 2009 deductible of $1,068 and Medicare Part B has a $135 deductible in 2009, then pays 80% of the Medicare approved expenses. This is where Medigap insurance (Medicare supplement coverage) comes in and can be so beneficial. A senior can purchase a Medigap policy, like a Plan F or J, that covers the Medicare Parts A and B deductibles as well as the 20% of Medicare Part B expenses. When you combine Medicare plus a Medicare supplement plan, your out of pocket can end up being little to nothing.
If you are buying a Medigap policy, hoping to get your money's worth out of it be careful what you wish for. That means you are hoping to have poor enough health to get the insurance company to pay as much or more for your health expenses as you paid in premium. That does not makes sense. Do you want your money's worth for auto or homeowner's insurance? Probably not. Of all insurance, the one you least want to use is probably your health insurance. Medigap insurance is bought to protect you from the big expenses and has been a great purchase for many seniors because it has provided peace of mind and financial protection when big needs have unexpectedly and unfortunately arisen.
