Medicare Supplement Cost

2014 Medicare and Medigap Updates

Medicare Supplement Cost

Next to the proposed coverage of a preferred back-up medical plan, few would argue that the Medicare supplement cost is the second most important consideration when selecting your fall-back policy of choice. In the first place, the reason why one would want a supplemental medical policy is because one would prefer to save up on medical expenses without compromising coverage. If wrongly chosen, a policy can easily set you back hundreds of dollars per year because of the exorbitant cost tied to getting a supplemental medical plan.

In this regard, it’s best to look at Medicare supplement cost in the context of reasonable expectations. First off, the cost of a policy is closely tied to the exact coverage that it offers so it is unwise to use cost as an outright basis for selecting a plan. A cheap plan means little if it does not meet your medical needs; you may end up spending more to pay for the medical services that you need.

Conversely, an expensive plan does not always mean you are getting the best plan for you or for a family member. If you do not need all the benefits provided for in a specific plan’s coverage, you are spending money for nothing. In the long run, you bleed money without reaping the benefits that you want to get in the first place and this basically defeats one of the most important purposes of getting a supplemental plan.

Even within a specific coverage, Medicare supplement cost can differ depending on several factors. The first is the specific pricing scheme adopted by that specific policy provider. When comparing plans, you will find that two Plan A policies from two different providers will not always have the same starting price. This only means that one provider may be adopting a fixed rate pricing scheme while the other can start at a cheaper rate but incrementally increase the price annually. The starting price means very little if you do not know the price in subsequent years.

Moreover, pricing schemes also depend on factors like your address, your lifestyle choices, and the likes. Metropolitan locations tend to have higher Medicare supplement cost because the medical expenditure is actually higher. In contrast, rural areas tend to have cheaper policies because of the lower cost of medical services. Likewise, people who used to be smokers may end up being charged higher because of perceived medical risks associated with past lifestyle choices. These risk factors are all adequately mapped to determine a potential client’s medical tendencies and history with respect to illnesses that may require regular medical care.

Depending on all of these factors, the Medicare supplement cost of one policy holder may range from about $120 to $450 per month. The range already spans all the different coverage benefits and other factors and represents both extremes of limited coverage plans and all-inclusive supplemental packages.

In the end, it is important to determine if the Medicare supplement cost you are paying offsets all your medical expenses. This is the ultimate measure of the Medicare supplemental plan. Only when there is positive cash benefit to be had does getting a supplemental plan make sense, otherwise it may be more preferable to explore other options like private insurance or Medicare advantage to meet your need for medical services in the most cost-effective manner. In most cases Medigap, which is government regulated, will be the best option.