Filling In the Doughnut Hole: When Medicare Benefits Run Out, Supplemental Insurance Can Help
Start here... |
| Select Insurance Type: |
| Zip code: |
|
|
Never heard of it? Well, don't let the cute name mislead you. Business Week reports that Medicare allots $2,510 per year in coverage for seniors, but many plow through these funds quickly considering the high cost of prescriptions.
As many as 26% of the beneficiaries run out of funds by August. These seniors are forced to either ration out their medications or stop taking them altogether, possibly risking their lives.
There is an alternative: Medicare supplemental insurance, a.k.a. Medigap. With most seniors on a fixed income, the low premiums of medicare supplemental insurance are less expensive than out-of-pocket costs for recurring prescriptions.
Of course, the most important benefit to supplemental insurance would be coverage for medications treating chronic, life-threatening conditions.
Why is there this shortfall in the first place?
When Part D was developed in 2004, the government drastically underestimated the required prescription budget by a few hundred billion dollars. This problem needs to be resolved as soon as possible, and both presidential candidates are developing plans.
Obama plans to pass legislation allowing the federal government to negotiate lower prescription drug prices. McCain feels seniors with more assets should pay higher premiums to lessen the burden on lower-income seniors.
Perhaps using both methods would be the best way to guarantee that no senior citizen has to go without the medications they so desperately need. Until a plan is implemented, seniors using Medicare should obtain supplemental health coverage.