A frequent question that I get is, I am in excellent health do I really need a Medicare Supplement (Medigap)?
To answer this, we need to go back to the definition of insurance. Insurance is meant for a sudden unexpected loss, not for something that is already happening.
The gap that a Medicare Supplement fills is the on-going 20%. Let’s take a closer look into this. A cancer treatment that goes on and on. The final bill could be 100’s of thousands, would you agree. So pick a number $200,000. Medicare will pay 80% leaving you with 20%, 20% of $200,000. is $40,000. Same situation with Rheumatoid Arthritis, and don’t forget that one illness that nobody can figure out, which sends you to the Mayo Clinic.
Other than cancer and RA here are some other conditions that happen frequently that are fairly costly.
- Hip replacements
- Knee replacements
- Cataract surgery
- Sudden heart attacks
It is not my intention to scare you into a Medicare Supplement, just wanting to make sure you are thinking of everything so you can make an informed decision. A Medicare Supplement can a vital tool in protecting your assets from medical expenses, expected or not.
I kind of liken insurance as a necessity, but something I hope I’m not using to it’s fullest.
So if you are in excellent health do you need a Medicare Supplement policy? Only you can answer that question. I don’t hold the crystal ball to know your future.