9 Medicare Supplement Myths That Can Cost You Thousands

More than 67 million Americans receive their health coverage through Medicare, and although many people take advantage of the program, that doesn't mean it's easy to navigate. It can be particularly overwhelming when you're trying to understand Medicare Supplement insurance, also known as Medigap.

These are optional policies available from private insurance companies to help cover the out-of-pocket expenses associated with Medicare, like copayments and deductibles. Some policies also cover services not covered by original Medicare. If you're confused, you're not alone.

Here we debunk nine Medicare Supplement insurance myths that could potentially lead to surprising financial mistakes and offer ways to help you decide if this type of coverage makes sense for you.

Medicare Open Enrollment is held annually between October 15 and December 7 and is the period when you can buy new plans or switch plans. Many assume that enrollment for Medicare Supplement insurance plans happens at the same time, but this actually isn't true (and not knowing can cost you thousands).

The enrollment period for these supplement plans is limited to the six months after you first enroll in Medicare. You can purchase plans at any time after this six-month period, but doing so may result in higher costs or the potential denial of coverage by insurers.

It can be easy to assume that all supplement plans cover the same thing. However, that isn't the case at all. There are 10 different plans, each designated by a unique letter. They include A, B, C, D, F, G, K, L, M, and N.

It's important to note that plans C and F are not available to individuals who turned 65 on or after Jan. 1, 2020.

There are other nuances depending on where you live, with some plans having high deductibles in certain states, so it's best to consult an insurance specialist to answer any specific questions you might have before enrollment to help eliminate money stress.

Around 70% of adults who turn 65 or older will need some sort of long-term care. This includes assisted living facilities to home help aides, and paying for this care can be expensive. A private room in a nursing home, for instance, can cost up to $300 a day.

Unfortunately, neither Medicare nor Medicare Supplement Insurance plans cover long-term care. For that, you will need specific long-term care insurance coverage.

Obtaining dental coverage as a senior can be a complex process. Generally speaking, Medicare and Medicare Supplement Insurance plans do not cover dental insurance. To avoid costly dental bills, seniors should look into Medicare Advantage or other private insurance plans.

Medicare Supplement Insurance once covered prescription drugs, but that is no longer the case; these plans have not covered prescription drugs since 2005.

Medicare Part D covers prescription drugs, but keep in mind that enrolling late can result in expensive penalties.

If you find a better policy or your medical needs change, you can purchase a new plan at any time. However, you may need to undergo medical underwriting when switching to a new plan. Furthermore, switching depends on the insurer and if there is a waiting period to make the switch.

Medicare Supplement Insurance plans help cover medical costs not covered by Medicare Parts A and B. Medicare Advantage plans offer Medicare coverage through private insurance. Advantage plans can also bundle care and offer additional benefits, such as Part D prescription drug coverage.

In other words, they are very different insurance products, and you cannot have Medicare Advantage and Medical Supplement Insurance at the same time.

Health care practices do not have to accept Medicare. If a practice does not accept Medicare, it will also not accept Medicare Supplement Insurance. If staying with your current provider is important to you, make sure you check with them ahead of time on whether or not they accept Medicare.

You may be healthy now, but will you always be? All of us have health problems at some point in our lives. By waiting until you are sick to obtain a Medicare Supplement Insurance policy, you may incur additional expenses. Furthermore, waiting means you will likely have to undergo medical underwriting, or coverage could be denied entirely.

You can enhance your coverage and reduce expenses with the right Medigap Supplement Insurance plan. However, a plan that best suits your needs requires extensive research or expert advice.

Fortunately, insurance brokers are available to help you find a Medigap Supplement plan that best suits your needs, allowing you to keep more cash in your wallet.