Some people are under the impression that all retirees receive a high amount of Social Security benefits. This is a major misconception, as some retirees barely receive enough Social Security to cover their monthly bills. Currently the average amount of Social Security retirees receives is $1,197 per month. While this may appear to be a lot of money, it is not when you consider the cost of living in the United States. With that in mind, seniors typically have more medical expenses than any other age group. And, one way they pay for these expenses is with their Medicare benefits. The rest is paid for out-of-pocket.
Know About Part A And B
Before you can even consider saving on Medicare, you must understand how it works. Medicare is divided into four parts – Part A, Part B, Part C and Part D. Part A covers medical bills incurred during inpatient stays. Part B, on the other hand, covers expenses related to outpatient care. Part C, also known as Medicare Advantage, is obtained from private insurance companies and are customized specifically for the beneficiary. Part D covers prescriptions.
Some retirees discover early on that their Medicare benefits are not enough to protect them from out-of-pocket expenses. This especially applies to individuals with chronic illnesses. The best option for these individuals is Medigap. Private health insurance plans. Keep in mind that this policy is only available to beneficiaries who are covered under Original Medicare. The great benefit of Medigap plans is they cover a broad range of co-pays and deductibles associated with different health care services. These services include anything from skilled nursing care to inpatient to outpatient. Click for more info on Medigap policies.
Do A Comparison
Never purchase a prescription drug plan without doing a comparison first. Doing so will help you determine which is the most affordable way to get one of these plans. You will have several options available to you, so compare to see which will offer you the best and most affordable coverage.