Original Medicare is not the only option available when it comes to health-care insurance after you retire. Original Medicare consists of Part A and Part B, which cover hospital and outpatient medical costs. However, there are costs and gaps in coverage that also come with Original Medicare.
You might want to consider additional coverage for a few reasons:
- Original Medicare does not include prescription drug coverage.
- Original Medicare has deductibles for both Part A and Part B, which are $1,364 and $185 respectively in 2019. These amounts change annually.
- Original Medicare does not have an out-of-pocket maximum, meaning there is no limit on the amount of money you might have to pay in a year.
- Original Medicare does not cover certain services such as hearing, vision, and dental.
Additional Coverage Options
In order to fill some of the gaps and cover more of the costs of Original Medicare, you can also get a Medicare Supplement plan, also known as Medigap. There are a variety of Medigap plan options available that vary in price and coverage. However, they do not include prescription drug plans, which have to be purchased separately. The monthly premiums for these plans are often expensive, but they offer much more extensive coverage than Original Medicare.
Another Medicare option that has become increasingly popular in recent years is a Medicare Advantage plan. Offered by private insurance companies, these plans combine Part A and Part B, and sometimes Part D, into one plan. The continued success and growing popularity of these plans have increased the stability and strength of Medicare Advantage plans.
While these plans can change from year to year, the networks associated with the plans have remained relatively stable in recent years. Medicare Advantage plans also offer out-of-pocket maximums that can protect the beneficiary from high costs, and many plans include value added services not included with Original Medicare such as hearing, vision, and dental.
Medicare Advantage plans have become something that retirees can rely on more every year. For more information on Medicare Advantage and Medicare Supplement plans, check out this article or contact us today.