Medicare Doesn’t Cover Deductibles and Co-Pays
Naturally, enrolling for Medicare will take a huge financial strain away during retirement since your hospital stay and doctors’ services will be covered by Part A and Part B. But before the coverage kicks in you’ll still be responsible for a $1,408 deductible for Part A, $352 per day for days 61-90 in the hospital, and $704 per day after that. Keep in mind that these costs are subject to change. These rates are for 2020 only.
Furthermore, seniors can only rely on Medicare for a total of 60 days beyond the 90-day limit. After those days are up you’ll be expected to cover your hospital stay at full cost.
As you know, Part B will cover doctors’ services, x-rays, and lab tests- but only 80% of the costs! The other 20% is all on you after a $198 deductible in 2020.
Some seniors may not have supplemental coverage for a retiree health insurance policy. As such, you could fill the gaps with the help of either Medicare Advantage or Medigap, a medicare supplement policy.
Medigap policies are sold by private insurers. They come in 10 standardized versions that pick up where Medicare leaves off. Just keep in mind to buy this policy within six months of signing up for Part B. That way, insurers can’t reject you or charge extra due to any preexisting conditions you might have.
