I’ll be Turning 65 Soon and Looking Forward to Enrolling in Medicare. Why am I Hearing That I’ll Need Additional Coverage? Won’t Medicare be Enough?
“Traditional” or “original” Medicare refers to Parts A and B. Put simply, Medicare Part A will provide coverage after being “formally” admitted to a hospital or skilled nursing facility. Part A requires a deductible of $1,408 per benefit period of 60-days.
Part B provides medical services such as doctor/specialist visits, lab tests, MRI’s, out-patient surgery, hospital “observation stays”, etc. You will be required to pay 20% of all medical services in addition to satisfying the $198 annual deductible.
Medicare has greatly benefited beneficiaries since it’s inception in 1965, however, it was never designed to be 100% comprehensive.
It’s because of these deductibles and co-insurance requirements that the majority of people choose a product in addition to their Medicare to greatly reduce or even eliminate their out-of-pocket costs associated with traditional Medicare.
Another thing to consider; traditional Medicare does not include prescription drug coverage commonly referred to as Part D. Not enrolling in a prescription drug plan determined as “creditable” coverage by CMS (Medicare) within a certain time frame will subject you to a “late enrollment penalty.”
Your question above can only be answered when all out-of-pocket risks are understood with careful consideration of your individual healthcare needs and expectations. I recommend meeting with a trusted professional who specializes in serving the Medicare community.