Here is one example how having Medicare (Medigap) Supplement Insurance can lower your financial risk.
Marily Grady, age 67, has a total hospital bill of $28,000 based on the following:
- $20,000 hospital expenses
- $5,000 approved physician expenses
- $3,000 skilled nursing care expenses
(30 days at $100 per day)
In 2004, Medicare paid $25,044 of the $28,000:
- $19,124 (the hospital expense minus the $876 deductible)
- $3,920 (80 percent of the approved physician expenses)
- $2,000 (all expenses for the first 20 days of skilled nursing care)
- $0 (skilled nursing care expenses in excess of $109.50 for days 21-100)
That left Marilyn to pay the remaining $3,051.
Had Marilyn had Medicare Supplement Insurance, the coverage would have paid $3,051 (the amount not covered by Medicare), bringing her total to $0.
- $876 (Part A deductible)
- $1,080 ($100 Part B deductible and
20 percent of the remaining physician
expenses approved by Medicare) - $1,095 ($100 a day for days 21-30 of skilled nursing)