Medicare Supplemental Insurance Can Help Save Retirement Funds

Individuals who have retired and are depending upon Medicare to offset the costs of their medical expenses often have to dip into their savings and retirement funds to pay for products and services that are not covered, such as co-pays.  Sometimes this is not a very high amount and has very little effect on a person’s finances.  At other times, the amount can be quite high, and often, the costs are ongoing and can end up overwhelming.  This is when individuals who are not aware of Medicare supplements are at risk of depleting their retirement funds.

There are Medicare Supplemental Insurance plans available that can help offset the costs that are not covered by basic Medicare coverage.  The cost of these supplemental policies can save a person money many times the price of the premiums, especially if there are ongoing medical concerns that require doctor’s visits and/or prescriptions and other services with out-of-pocket costs.

It is important that as individuals begin to approach retirement they factor in all the expenses they will need to cover – especially medical expenses.  Areas including costs for co-pays, treatment that is not covered, prescriptions, and premiums for supplemental insurance and/or long term care coverage.

It is not always easy to look ahead to these areas; however, it will be even harder if there is no planning and no coverage.  It could be financially devastating.  

There is an abundance of information available regarding Medicare supplemental insurance.  You can start by checking with the Centers for Medicare and Medicaid Services (CMS) and go to their website to get basic information and facts.  For instance, the site will advise you that supplemental insurance coverage is the same no matter what company you purchase it from, however premiums can differ tremendously depending on the company you buy from.  For instance, Part J is Part J and covers the same things regardless of who you buy it from.  The issue is that you might pay $50 more per month with one company than the other.  To protect your savings and your retirement funds, it is essential that you research the coverage that is available.

As you move closer to retirement, begin to research the supplemental insurance that is available and determine what is right for you.  If you do this research in advance, you will be able to use your retirement funds for what they were intended to do: finance the retirement you envisioned.