There are some individuals who think that Medigap/Medicare Insurance could be a form of frivolous spending. Here’s why there are some people who think that’s true.
Medicare is a government-run health insurance program for people aged 65 and over and those who receive disability pensions for at least 24 months.
Original Medicare, it was argued, is the best insurance plan in the United States and among the best in the world. The premiums for Medicare Part A) will most likely be paid for you (through the taxes you have paid), and the Part B premium is only $ 110 per month for those who received Medicare in 2010.
In addition to the low cost, you have tremendous freedom in your access to health care. You can travel anywhere in the country and find a doctor or hospital that accepts Medicare.
This begs the question, if Medicare on its own is really an amazing plan, why would anyone in the world buy Medigap Insurance? A Medicare Advantage Plan is an insurance that is sold by a private insurance company. The purpose of these plans is to fill the gaps left by Medicare. Because of this, these plans are often referred to as “medigap plans.”
The following are three arguments against Medicare Advantage Insurance
- Guaranteed insurability
When you first qualify for Medicare (eg, if you are 65 years old), you are eligible for a Medicare Advantage Policy. In most situations, and in most states, you may be in the advanced stages of a terrible disease, and a Medicare advantage company must offer you insurance at a preferential rate.
Once you qualify for a Medicare advantage plan, you can never lose your insurance while you pay your premiums.
- Protection against the “big stuff”
If you have to pay a few dollars for an X-ray, or a co-pay to your doctor, that’s probably not a big deal. But if you get into trouble, that is, if you really get sick, the initial Medicare protection may not be as robust as you thought. $ 1,100 per stay in the hospital can add up very quickly, as well as your share of expensive diagnostic exams.
The fact is, most of us do not buy insurance for the little things, like a thing on the car. But we want insurance to cover for the unexpected, such as a serious car accident.
For most people, Medicare advantage plans are very affordable. For instance, a senior who turns 65 years old in Tarrant County, Texas, may receive a Medicare Advantage Plan F (a very popular plan) for just over $ 100 a month. A 70-year-old woman can get the same plan F for about $ 130 a month.
This is not only very affordable, but also very predictable. For example, in Plan F, your only health care costs (other than prescription drugs) are the cost of your monthly Part B premium and your Medigap premium.
Taking all of these factors into account, the case for Medicare Advantage Insurance is far much stronger than the case against it.