When Medicare was first introduced in 1965, only four companies provided Medicare supplements. Those companies were Mutual of Omaha, United American, United Health Care, and Equitable Life and Casualty. Now countless Medicare supplement companies offer identical plans. If you’re in the process of shopping for Medicare supplement plans, the key considerations are monthly cost, annual rate increases, customer service and financial strength.
Since Medicare only pays 80% of your plan’s coverage, you’ll need additional insurance to pay the other 20%. Otherwise, you could jeopardize your life savings—that is, assuming you have any. For instance, according to a report from CBS News, the cost of a mild heart attack averages around $760,000. That means with Medicare coverage alone you would still owe 20%, which is $152,000.
That’s where supplemental medical insurance comes in. You may have heard of Medigap or Medicare Supplements. These plans are designated by different letters of the alphabet, each of which have varying benefits with differing deductibles and types of coverage. Along with these differences come varying price tags.
Even if you have the best, most expensive Medicare supplemental health insurance plans, you may still be limited by the procedures that Medicare and your supplement pay for. For example, if someone were to become diagnosed with a critical illness such as cancer, Medicare approves the treatments of chemotherapy and radiation. Medical advances deliver many new alternative treatments every year that may have a higher success rate without the health risks. That being said, there is a very good chance that Medicare or your Medicare supplemental insurance will not pay for these other treatments.
According to the World Health Organization, the USA ranks 37th in the world for health care. Needless to say, affluent people are able to get their care overseas with cutting-edge medical procedures that Medicare or your supplemental insurance won’t pay for. We are not saying these alternate treatments are better or more effective than Medicare-approved treatments. That becomes a decision for you to make, that is if you have the extra cash or a cash policy that will pay you upon diagnosis of a critical illness. There are some policies that may pay up to $475,000 cash upon the diagnosis of cancer, heart attack, stroke, or kidney disease. It might be a good idea to look into these plans to give you the freedom and flexibility to choose your health care treatment when you become sick.
Sound complicated? It is! Because of the sheer number of options and what they cover, shopping for the best Medicare supplement and cash plans can be difficult and aggravating. However, you don’t have to brave the process alone. American Family Senior Services is here to help you choose the best supplemental medical insurance for Medicare and remove some of the confusion in the process. We will answer any questions you have, and can help you sort out any problems along the way.
For more information on how we can help you find the most acceptable Medicare supplement plan and life insurance with a critical care rider, contact us. You deserve the freedom of choice to seek out the medical care you want and need.