Medicare alone may not be enough to cover your health-care needs in retirement. Medicare coverage comes with deductibles, co-payments or coinsurance costs for many types of treatments, including hospitalizations. Typically, the deductible amounts are increased each year. If you’re not prepared to pay these expenses out of pocket, you may want to consider a Medigap policy. Medigap policies are sold by private insurance companies, and must be clearly identified as “Medicare Supplemental Insurance.” These policies are standardized and regulated by both state and federal law.
Currently, 10 standardized plans are available (Plans A-D, Plans F and G, and Plans K-N). Not all plans are available in all states, as Massachusetts, Minnesota, and Wisconsin have their own standardized plans. These plans cover certain specified services, but offer different combinations of coverages. Some cover all or part of your Medicare deductibles, co-payments, or coinsurance costs. Some of the benefits not covered by Medigap include long-term nursing home care, vision and dental care. Medigap will follow Medicare in excluding what is unnecessary or experimental.
If you’re covered by an employer-sponsored health plan in retirement, you may not need to purchase Medigap insurance. In this case, your primary insurance coverage continues to be your employer’s health plan. For eligible unpaid expenses, Medicare provides secondary coverage.
If you have questions on Medigap coverage, contact the Insurance Experts at Henssler Financial: experts@henssler.com or 770-429-9166.
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The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
