Jun 242011

Unfortunately, what most Americans that aren’t currently seniors don’t know – is that there are things Medicare doesn’t cover.   As the Medicare and You primer from the government states, this includes things like long-term care, hearing aids, routine dental care, etc.

Beyond this, on some procedures, Medicare only covers 80 percent of the cost requiring seniors to pay for the other 20 percent. This is why the vast majority of seniors  – purchase what’s called Medicare Supplemental Insurance.

As you may know, Medicare insurance will cover up to 80% of certain types of medical treatments, doctors office visits, hospitalizations, medical equipment and more. The exact coverage will depend on if you have just Medicare Part A or if you also have the optional Medicare Part B Coverage.

Even with this coverage, many people are left to pay significant out-of-pocket costs to cover the remaining 20 percent of the price of their services which is also referred to as the co-payment amount. Many people simply cannot afford to pay the co-payment in cash so they make use of one of the many Medicare supplemental insurance policies available on the market. A policy may be managed by one of many companies, but all fall under the guidelines of Medicare.

As such, private insurance companies currently offer policies to seniors to cover the gaps in what Medicare doesn’t. This is a tremendously competitve market throughout the country offering seniors all kinds of packages at all kinds of costs.

This is important for a number of reasons.

First, the working age public are often unaware and think Medicare covers all their health and medical expenses once they retire. This is not the case.

Furthermore, as there are things Medicare doesn’t cover, and with a program going bankrupt, one can certainly envision a growing list of things Medicare A and B won’t cover meaning more out-of-pocket costs to the aged consumer.

Also important is the idea that private insurance companies are indeed integrally involved in the health coverage of America’s seniors, and are eager to be so because it’s profitable.

One of the consistent media attacks on Medicare reform plans is that giving seniors their own money back each year to buy their own insurance won’t work because private companies aren’t interested in covering seniors.

Nothing could be further from the truth. We currently have at least three different senior health care programs covered by private insurers – prescription drugs, Medicare Supplements, and long-term care – that are operating with great competition producing numerous choices for the aged consumer.

Our recent experience with Medicare Part D – prescription drugs – has shown that involving private insurers in offering coverage to seniors can be quite successful as the premiums for this program are currently lower than what was anticipated when the plan was first proposed, and the actual cost to the federal government has so far come in under budget.

America’s soon-to-be seniors should not only not fear private insurance company involvement in their future Medicare coverage, they should relish it because all the current examples of such participation are working just fine.

If you are looking to supplement your Medicare benefits you can request a quote from Centaur Medicare Solutions.  We pull all the quotes and send them to you so you wont be bombarded with emails and calls from all the different companies..  You will only be dealing with one agent and this service is free!

Joel Moyer