Many people eligible for Medicare don't realize that the program has significant gaps that can add to their healthcare costs. Private insurance companies help close these gaps through Medicare supplement plans.
Medigap Supplement Plan C is one of the most robust, comprehensive options for people worried about out-of-pocket healthcare costs.
Before you purchase Medigap Plan C, though, you should learn about the costs that it does and does not cover.
Medicare makes healthcare more affordable, but the program has worrisome gaps. Some of the most common Medicare gaps include:
A $185 annual deductible for regular doctor visits.
A $1,364 deductible for hospital visits.
Charges up to 20% of costs associated with medical testing, anesthesiology, and similar services.
Charges up to 20% of physician services after reaching your deductible.
Up to 37% of medication costs after spending $3,820 on prescriptions.
Even with Medicare coverage, a person can spend thousands of dollars after a serious illness or accident.
Medicare Supplement Plan C covers most of the gaps left by Medicare Part A and Part B. Some of the most appealing benefits include:
Paying deductibles for Part A and Part B.
Paying for stays in skilled nursing facilities.
Paying for hospice care.
Paying for coinsurance and copayments for Medicare Part A and Part B.
Covering 80% of travel expenses when receiving medical treatment outside of the U.S.
Private insurance companies offer 10 supplemental policies. Very few of them pay for Medicare Part B deductibles. If you have Part B, then Medigap Plan C might give you the benefits that you need to avoid excessive deductibles.
Medigap Plan C misses two benefits that some people may find crucial to keeping healthcare costs as low as possible.
The policy does not limit your out-of-pocket expenses. For guaranteed limits, you will need Plan K or Plan L.
Medigap Plan C also does not cover Medicare Part B excess charges. Excess charges come from doctors that charge prices higher than those that Medicare will cover. If your doctor charges more, then you will have to pay the difference that Medicare does not cover. Only Plan F and Plan G pay for Part B excess charges.