In dictionaries the word gap means a break, a separation, an incompleteness or deficiency. In Medicare it means the same thing, but it refers specifically to something that is missing from your health insurance coverage. Many seniors make a critical mistake when they buy into government literature that explains how Medicare pays for eighty percent of your healthcare. This is not true. What they really mean is Medicare pays for eighty percent of major medical expenses. As a result, millions of Americans are totally unprepared to deal with the true cost of their health and wellness in retirement. Medicare Costs Original Medicare Part A (hospital insurance) and Part B (medical insurance) creates a number of cost gaps. In fact, every deductible, copayment, and coinsurance is a cost gap, because it's a break in your coverage, and you must pay the gap out of your own pocket. One way to fill this gap is with Medigap, also known as Medicare supplement insurance. Medigap is insurance … [Read more...]
What Medicare Out-of-Pocket Costs Mean to You
Out-of-pocket costs are those fees that you have to pay at the doctors office, hospital or pharmacy because they are not covered by your Medicare health insurance. Almost all healthcare plans have these expenses, but they vary according to what type of Medicare plan you choose. Your out-of-pocket costs are a financial risk. As with any other type of insurance, the more risk the insurance carrier assumes the higher the premium. Conversely, if you assume more of the risk, you will incur a higher percentage of the costs out of your own pocket. Let's explore the common out-of-pocket costs in Medicare. Out-of-Pocket Cost by Category Premiums are payments you make, usually monthly, in order to be part of a health care plan. If you are enrolled in Medicare Part B (doctor coverage), your premium is taken from your Social Security check. You paid into Part A (hospital coverage) through employment taxes while you worked, so you don't pay a monthly premium to get it. A copayment, or … [Read more...]
Is a Medicare MSA Plan Right For You?
MSA stands for Medical Savings Account. It's a type of health insurance plan that helps you set aside monies in a tax-free savings account to be used on your health care costs. If you're familiar with Health Savings Accounts outside of Medicare, it's a similar type of health plan. Some Medicare Advantage (Part C) plans offer the MSA feature. They have a lot of flexibility and allow you to choose your health care services and providers. Depending on your situation, it might be a good alternative. Let's examine what it is and who it can benefit. Two parts of an MSA A high-deductible health plan, which will cover your medical costs after you reach the deductible; A Medical Savings Account in which your MSA plan deposits money you use to pay for your medical expenses. How an MSA plan works After you enroll in an MSA plan you open a bank account in a bank designated by the plan. You handle the savings account yourself. Your plan deposits a certain amount of money given … [Read more...]