Is Medicare Supplement Plan C worth it?

Choosing the right Medicare supplement plan is a decision that needs to be thought out, to make sure that you are really getting a good deal, one that will save you money in the long-run, while also “being there ” when you need it. Although paying less for premium rates might sound good at first, you also need to make sure that it´s covering what you need it to cover, otherwise you will end up paying for the health insurance and having to pay for additional health services as well.

With plan C, there are not as many surprises, as this plan covers nearly everything that your original Medicare Part A or B won´t cover. In the expenses that are being covered by this plan, count:

  • Three first pints of blood (additional pints of blood will be covered by Medicare Part A or B)
  • Medicare part A & part B deductibles
  • Part A coinsurance and copayment for hospice care
  • Part A coinsurance for costs due to a hospital stay
  • Skilled nursing facility coinsurance
  • Medicare Part B coinsurance or copayments for any health service
  • Foreign travel emergency

One expense that is not covered by this is the Medicare Part B excess charge.

What is a Medicare Part B excess charge?

Health providers can agree on charging you only what is covered by Medicare. This is what´s known as a Medicare assignment. Medicare will set a specific amount for every procedure, that they cover. Health care providers with Medicare assignment, promise to only charge you below or this specific amount of money set by Medicare. There are however many providers who do not agree to this. A specific example of this would be: Medicare sets a rate of 300$ for a specific procedure and only covers this amount A doctor without Medicare assignment can charge you 480$. The 80$ would be your excess charge, which you would need to pay out of your own pocket.

Statistics say, that over 90% of health care providers do accept Medicare assignment. This is one of the main reasons why many believe that this supplement Plan B is a really good deal. As you can always find a health care provider that accepts Medicare assignment, you can make sure that this excess charge doesn´t occur. Hereby making plan C a plan that covers all your costs, but its premium rate is lower than of plan F, who would allow you to see health care providers without Medicare assignment as well, free of charge.

However, as Medicare Part C is disappearing in 2020, many speculate that the premium rates of it won´t be as low anymore. As of 2020, no new member can enroll to this plan, meaning that the number or members will remain or decrease, and the existing members will only continue to grow older. With less members paying into the fond and the existing members using the available fond more and more, the premium rates would need to increase for the insurance company to be able to cover the costs.