There are a lot of reasons why people do not take advantage of the benefits that come with Medicare Part D plans. The bottom line is that if you are over the age of 65, then you need to seriously consider a supplemental insurance plan. But, there are so many different reasons why people don’t want to sign up for Medigap. The first main reason why you shouldn’t join Medigap plans is due to age. Here are some reasons to avoid signing up.
One: Many individuals simply do not believe that they can receive enough insurance benefits through a supplemental policy. They believe that Medicare will cover them, thus negating the need for a supplement plan. Some other individuals simply do not want the extra paperwork and question marks that come with receiving a medicare supplement policy. They believe that they can get the same coverage from a private supplemental insurance company at a better price. And, this is partially true.
Two: Another major reason that people don’t sign up for a supplemental policy with Medigap is due to the high deductible associated with these plans. When an individual reaches the senior year of their Medicare program, they automatically start at a higher deductible to protect themselves against high expenses later in life.
To keep the monthly premium low, many seniors choose to increase their deductible and take out a high deductible plan with a lower monthly premium. This strategy works well until the senior must make a major medical claim, at which time their current plan kicks in. So, when this happens, it is often too late to save money and switch to a higher deductible and lower monthly premium Medigap supplements plans.
Three: Another difficulty seniors have finding good Medicare supplement plans is because the rules and regulations are so confusing. There are new rules that limit what Medicare providers can charge for certain services and medications. Also, many individuals are confused about which Medicare provider they should use. And, as stated above, the rules for enrollment in a Medicare Part D health care plan are not clearly defined. So, many individuals find themselves on a slippery slope where they are trying to decide which plan they should go with.
Four: Although there are four different reasons that so many individuals choose not to sign up for a supplemental plan with Medicare, one of the biggest reasons is the cost. A traditional Medicare Part D plans 2022 premiums start as a lot higher than a traditional premium. Also, since there are so many different reasons for an individual to sign up for Medicare, many individuals are simply unaware that the plan has any benefits whatsoever. But, when you add all of these factors together, it is easy to see why many seniors, particularly those who are 80 years old or more, do not sign up for a supplemental plan with medicare.
If you fall into one of these categories, you may want to reconsider joining the medicare supplement plans because of high-deductible coverage. These plans generally require you to pay a high deductible to begin Medicare coverage. The high-deductible can rack up very fast, which means that before you know it, you could be paying thousands of dollars for your premiums annually.