Hospital and Doctor Expenses
The increasing cost of healthcare represents a serious threat to your retirement assets. Medicare alone may not be enough to protect those assets from the substantial out-of-pocket expenses you may incur as you age. You can choose to protect your assets by purchasing one of the following insurance plan(s) to cover the high expenses related to care in a hospital or by a doctor.
A Medicare supplement plan complements Medicare by providing payment for many of the out-of-pocket costs associated with Medicare. There are Medicare supplement plans that pay a portion of the out-of-pocket costs associated with Medicare; other more inclusive plans pay virtually all expenses. All allow you to budget for these expenses and, the most complete Medicare supplement plan enables you to not pay for eligible expenses when you receive medical care. Medicare supplement plans can be used in any state and you can choose your own healthcare providers.
Medicare Advantage, also known as Medicare Part C, is offered by private companies as an alternative to Medicare Parts A and B. These plans cover the same expenses as Medicare. Sometimes they also include more coverage than Medicare, for example hearing or dental benefits. While some Medicare Advantage plans feature zero or low premiums, nearly all include significant co-payments at the time of service. This can make budgeting for healthcare costs more difficult. In addition, your healthcare provider choices are often limited.
Short Term Major Medical
The short-term medical plan is designed to cover individuals who may be between insurance plans. You can choose a plan term that lasts between 60 and 180 days. If you still need coverage at the end of the first term, you can re-apply for one additional term.
Contact your local representative for additional information about protecting your assets from hospital and doctor expenses.
Table 143 Average Annual Expenditures per Consumer Unit for Health care