Newtown Square, PA -- (SBWIRE) -- 06/28/2017 -- Medicare Parts A and B do cover almost all seniors over the age of 65 and provide hospital and medical insurance benefits. However, Medicare does not pay for everything; and in such cases Medicare Supplemental Plans or Medigap help cover many expenses.
Medicare is designed to keep healthcare costs affordable for American seniors by covering numerous medical costs. However, there are certain expenses that Medicare does not cover. Most commonly Medicare beneficiaries have to pay for co-insurance payments, deductibles and Part B copays.
Deductibles in Medicare Part A (hospital insurance) has a $1,316 deductible per benefit period for "inpatient" stays, while Part B (medical insurance) has a $183 deductible per year. In addition to the deductible, if a patient is in the hospital for more than 60 days, there is a co-insurance payment of $329 per day for days 61 through 90. For hospital stays longer than 90 days, there is a payment of $658 for every "lifetime reserve day." There are 60 lifetime reserve days. If a patient is there longer, they must pay for all hospital stay costs. If a patient is moved to a skilled nursing facility, the first 20 days are covered, but days for 21 through 100 a co-insurance payment is a required. If a patient's stay extends beyond a 100 days, the beneficiary is responsible for all costs. Once the Part B deductible is met, Medicare usually covers 80 percent of the costs of medical care and the beneficiary is responsible for the other 20 percent.
According to Medicare.gov, the average Medicare beneficiary using Plan A and B will pay $635 per month, or $7,620 a year. "Since Medicare does not pick up those expenses, it means that you, the Medicare beneficiary pays for them," explained Clelland Green, RHU, CEO of benepath.com. Furthermore, the out of pocket expenses will depend on the quality of each individual's health.
Therefore, Medigap plans offer beneficiaries a way to keep medical expenses predictable and prevent unexpected surprises such as bills for uncovered hospital stays. Ten Medigap plans are available for seniors to choose from. "A good Medigap plan can make all the difference in the world financially is you are facing serious health issues," added Green. In fact, according to the American Association for Medicare Supplement Insurance, most seniors choose the most comprehensive plan, Plan F, allowing them to not have to worry about health coverage.