Medicare supplement

[suttonfnp]

 I have had Medicare with a supplement for the past 9 years.  I have noticed that my supplement pays almost nothing every year, because Medicare covers the majority of my expenses.  I am considering dropping the supplement and having only Medicare.  Currently my premium payments far exceed any benefits paid by the supplement.  

Any body have thoughts on this proposed move?

Andy Sutton

[AARPConsumerCare]

Hi Andy. Before buying, or dropping, a Medicare Supplement plan, you may find it helpful to read 10 Things to Know About Medigap Plans at https://www.aarp.org/health/medicare-insurance/info-2023/guide-to-medigap-plans.html If you have any questions, I'm here to help. - Stephen K.

[GailL1]

@suttonfnp 

Cancelling your Medigap (Medicare Supplimental) plan is a choice you have to make - sure if you only use your Medicare Part B going to the doctor occasionally and other stuff that is pretty regular under Part B - the cost is probably manageable for many people.

Where one starts having problems would be in the higher priced medical treatments or conditions and since Medicare has NO maximum out of pocket - your cost could become great for things covered by Part A and Part B.

Under Part A, just as an example, could be a major operation.  Or under Part B, the cost of something like the infusion of chemotherapy.  

Then there could be the cost of an accident that is liable to the person with no hint of getting reimbursed by a decision against a third party.

MediGAP (Medicare Supplemental) plans aren’t really health insurance - they are only financial protection insurance against some Medicare covered illness or treatment.  

Their premium cost will continue to rise as medical cost do and depending upon how your specific policy is rated that premium cost could go up more based on your age.  But on the other hand if you have little money to protect and your income is very low - then there is always charitable care like Medicaid.

Insurance is only partly for the here and now - most of the time it is forward looking like what MIGHT happen.

So the decision is yours to make, it isn’t a law that you have to have a supplemental policy (MediGAP) - but do know that creditors will try to collect the part that is suppose to be paid for by you in some way either out of pocket or with Medigap coverage, whether it is a small amount - which you might handle well OR a huge amount which may not be quite so easy to pay.

You probably now understand why many Medicare beneficiaries opt for a Medicare Advantage plan rather than a Medigap plan.  If that is something you want to consider just make sure you get a 5-star rated Medicare Advantage plan with a big network - better a PPO than an HMO, so that you won’t have problems finding a provider or getting the [whatever] medical event covered by a prior approval.

Good Luck in your decision.