Probably a Silly Med Supp Question, But...

[CFP83]

In the past month i have just opened my eye's to med supps as a possible great door opener product to get in and talk to senior clients regarding the rest of their financial picture. After doing some reading on the topic I think I am beginning to figure out what a med supp contract will cover:

• The clients $1100 deductable for medicare
• In the case of "major medical expense" it seems like a senior has total possible exposure of around 5-7k of expenses from what medicare wouldn't cover

Please correct me if I'm missing something on the above. If I'm not missing something then it seems almost silly for a senior with any money at all saved up to not just self insure the above risk. Again, i am probably misinterpreting something here, I often do.

Thanks in advance

 

[Chazm]

You are missing quite a bit, max out of pocket is unlimited


Part A ded. $1100
Part A copays $275, $550 and anything above 151 days.
Days 1-100 in "rehab" (medicare alone covers 1-20 days)

Part B deductible $155
100% of Part B excess(15%)
And here's the BIG coverage gap.....20% of Part B Copayment.

This 20% has no Cap. In other words, if you have a $500,000 bill you would be resposible for $100,000 plus the hospital Part A bill


This is just a quick run through.
If you are meeting with a client that is new to medicare you better be sure to explain this in detail and make sure they understand it.

 

[CFP83]

Ok, that makes much more sense. Heck no, I am not meeting or talking to anyone about med supps until I become more versed in the topic over the next month. As of right now I've just began to explore the conversation

Thanks again all

 

[Chazm]

Just read the medicare and you book and if you sell AARP they have some decent training

 

[Norwayguy]

Just read the medicare and you book and if you sell AARP they have some decent training

Just make sure to tank up on caffeine because those AARP training tests are sooooo boring.

 

[Frank Stastny]

You are missing quite a bit, max out of pocket is unlimited

A med supp say plan F will cover

Part A ded. $1100
Part A copays $275, $550 and anything above 151 days.
Days 1-100 in "rehab" (medicare alone covers 1-20 days)

Part B deductible $155
100% of Part B excess(15%)
And here's the BIG coverage gap.....20% of Part B Copayment.

This 20% has no Cap. In other words, if you have a $500,000 bill you would be resposible for $100,000 plus the hospital Part A bill

I may not be reading your post correctly but you mention Plan F and then point out that there is a "coverage gap" on the 20% of Part B charges. Am I reading that wrong?

There is no "coverage gap" with a Plan F. Everything, doctor and hospital, that is an approved charge is covered 100% by Plan F. There is no "coverage gap" or any "out of pocket" exposure with a Plan F.

In fact, all Med Supps cover the 20% of Part B charges. Plan N is the only Plan where there is a copay associated with Part B charges.

 

[DS4]

This 20% has no Cap. In other words, if you have a $500,000 bill you would be resposible for $100,000 plus the hospital Part A bill

$500k under Part B? Really?
Call me collect if you ever see this.

 

[moonlightandmargaritas]

This 20% has no Cap. In other words, if you have a $500,000 bill you would be resposible for $100,000 plus the hospital Part A bill

$500k under Part B? Really?

$500,000? Under Part A, maybe a possibility. Under Part B? I suppose anything is possible, but HIGHLY UNLIKELY.

Has ANYONE ever seen it???

 

[DS4]

$500,000? Under Part B?

Has ANYONE ever seen it???

If so....they have also seen the Easter Bunny.

 

[lflashman]

I've never seen the bills, or verified it, but, I had a client tell me that they racked up a little over 1,000,000 in Part B charges when he fell out of a boat and the propeller cut his leg off. They reattached it, and he had over 50 surgeries in a two year period on it. He can actually walk with it now.