This article shares data for historical purposes and does not reflect current cost associated with Medicare expenses.
Mount Sinai School of Medicine released a 2013 study stating that high cost of medical care accrued by seniors when only covered by Medicare. Simply stated Medicare doesn’t cover as much as you think it would. As a NY Times Health article the reviewed the study states, “A common assumption is that Medicare will pay for almost everything. But that’s mistaken.”
Medicare Study Findings
The study conducted with 3,209 seniors in the last 5 years of their lives from 2002 to 2008 explains the break down of costs for older person. Below are a few key points of the study:
• $38,688 is the average amount seniors spend on care for the last 5 years of their lives
• 25% spent $101,791
• 25% spent their entire assets including their homes
• 43% spent their entire assets excluding their homes
How Seniors Cover Themselves From Medical Out-of-Pocket Expenses
One way to address the high cost is to purchase supplemental insurance, aka Medigap. Medigap fills in the gaps that Medicare doesn’t cover. These plans cover coinsurance, deductibles, excess charges. That may seem like a lot of language, so here’s a clearer picture: Medigap can save you thousands in out-of-pocket costs.
We know how tough it can be to pick the “perfect” Medigap plan—especially when you’re new to Medicare. But here’s the thing: even if you later realize the plan you picked isn’t right for you, you might have options to make a switch. During your first six months of Part B, you have guaranteed approval. After that, certain state rules like the Birthday Rule may help. And if you need to go through underwriting, our AI tool can help you see your chances ahead of time. Questions? Call us—we’re happy to help, for free.
For questions about Medigap and Medicare call 800-930-7956 or contact Senior65.com.