The answer to this question is, most likely, “Yes.” Medicare doesn’t cover the entire cost of medical services. The amount that Medicare will pay for a physician’s office visit is 80 percent and the patient will be responsible for the other 20 percent. Hospitalizations, especially if they are long-term, will be even more costly, but the Medicare coverage will only pay for a hospital stay that lasts one year.
Deductibles and Co-Payments
People also have other things they will need to pay for their Medicare coverage. Medicare Part A and Part B require that the insured pay a deductible. The deductible is the amount of money that will need to be paid by the patient before Medicare will begin to contribute. They may also be required to pay a coinsurance amount or a co-payment when they visit their doctors.
As people grow older, their need for medical care increases and the amount they are contributing toward their medical care can eat into a significant portion of their retirement income. If they believe that they will need extra help paying the 20 percent they are required to pay, their deductibles and their coinsurance or co-payments, they will want to answer the question, “Do I need a Medicare supplement plan?” with a “Yes!”
Types of Medigap Policies
The amount of the bills that Medicare doesn’t pay and leaves for the patient is called a gap, and secondary insurance has been given the name Medigap because it fills the gaps Medicare leaves behind. In the event that a patient has a hospital stay longer than one year, all Medigap plans pay for another full year.
The deductible for Medicare Part A will be paid in full when people purchase Medigap plans B, C, D, F, G and N. They will receive partial payment if they purchase Medigap plans K, L and M. With Medigap plans C and F only, people will also have their Medicare Part B deductibles paid in full.
People also have choices of Medigap plans that pay their coinsurance or co-payments. If they purchase Medigap plans A, B, C, D, F, G, M and N, they will have their coinsurance and co-payments paid completely. Medigap plans K and L make partial coinsurance and co-payments for Medicare Part B and for hospice care under Medicare Part A.
Do I need a Medicare supplement plan? Medicare recipients who are concerned that they may not be able to pay all of their medical bills will answer, “Yes.” When they do this, they will have several options to choose from that will help them pay the remainder of their bills.
Source: http://www.medigap.com/medigap-plans/