This is a great question to ask, and does have somewhat of a simple answer: having a supplement plan is entirely up to you. To understand whether you truly need one, though, it’s important to have an understanding of what Medicare Part A and Part B covers and what they leave behind, which is what you’ll be responsible for.
Medicare Part A
Medicare Part A covers hospitalization, skilled nursing facility care, and hospice care, but it doesn’t cover everything in full. For example, if you are in the hospital, you’re responsible for the first $1,408, known as the Part A deductible. This number is based on the rates for the year 2020, so keep in mind that these rates will most likely increase in the future.
If you stay in the hospital longer than 60 days, then during the 61 to 90 day period, Medicare is going to leave behind $352 each day, making it your responsibility to pay. If you are in the hospital longer than 90 days, then during the 91 to 150 day period, you would need to use all of your 60 reserve lifetime days, which costs $704 per day.
If you are in the hospital again on another claim that’s outside a window period of 60 days when you’re discharged, your Part A deductible starts over again, resulting in a buildup of costs.
For skilled nursing facility care, but the first 20 days are covered. For days 21 through 100, Medicare leaves $175 behind each day. That’s over $10,000 that is left in your responsibility.
And, for hospice care, Medicare leaves behind a small copayment.
Medicare Part B
Medicare Part B is the medical insurance side of coverage, which is for the doctors. For primary care specialists, physical therapy, speech therapy, diagnostic testing, advanced imaging, medical equipment, and Part B medical drugs that are administered at the doctor’s office or in the hospital, all have a $198 deductible left behind by Medicare. After that, Medicare will cover 80% of them claim and you’re responsible for 20%
Key Takeaways
As you can see, Medicare Part A and Part B cover a lot of services, but there’s still a lot of bills left behind. If you keep going back to the question of whether you need a supplement for Medicare, truthfully, the answer is no. It’s not required to have. However, if you don’t have the resources to pay the deductibles or copayments upfront, or don’t want to have that worry on your mind if something were to happen, then enrolling in a Medicare Supplement Plan should definitely be something to consider. There will be a monthly payment for the supplement, though, because you are asking an insurance carrier to put that risk onto themselves.
At Hitcho Insurance, we work with you to find the best Medicare policy that suits your needs, your goals, and your finances. If you’re wondering what Medicare Supplement Plan is right for you, then give us a call today at (610) 694-9435 and receive a free consultation.
