I've been hearing the Democratic Presidential candidates praising Medicare for all.Everybody I know on Medicare has a Medicare supplement plan.People much smarter than Me fail to ask the candidates why this is so.
Medicare was never designed to fully cover 100%. The reason is people need to have some skin in the game in order to help control costs. Unlike private plans Medicare covers 80% of everything after the first $200. Most private plans won't start paying 80% till after the individual patient first spends $2,500-$5,000.
In addition.. generally speaking pharmacies, hospitals and doctors agree to being paid far less for Medicare claims then those with private insurance. This means even greater savings on the 20% they'd otherwise pay under a private carrier.
Private insurers seem enthusiastic about offering supplemental plans. That's good for the insurance companies bottom lines. Also good for people who prefer tailoring for their specific needs and can afford the extra insurance. This adds a certain amount of additional flexibility.
The best part is people will end up paying a fraction of what they now pay for basic commercial healthcare. They can use their savings to either pay the 20% when a medical need arises OR to purchase additional coverage ahead of time if they so desire.
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I've been hearing the Democratic Presidential candidates praising Medicare for all.Everybody I know on Medicare has a Medicare supplement plan.People much smarter than Me fail to ask the candidates why this is so.
ReplyDeleteMedicare was never designed to fully cover 100%. The reason is people need to have some skin in the game in order to help control costs. Unlike private plans Medicare covers 80% of everything after the first $200. Most private plans won't start paying 80% till after the individual patient first spends $2,500-$5,000.
DeleteIn addition.. generally speaking pharmacies, hospitals and doctors agree to being paid far less for Medicare claims then those with private insurance. This means even greater savings on the 20% they'd otherwise pay under a private carrier.
Private insurers seem enthusiastic about offering supplemental plans. That's good for the insurance companies bottom lines. Also good for people who prefer tailoring for their specific needs and can afford the extra insurance. This adds a certain amount of additional flexibility.
The best part is people will end up paying a fraction of what they now pay for basic commercial healthcare. They can use their savings to either pay the 20% when a medical need arises OR to purchase additional coverage ahead of time if they so desire.
What's not to like?