The amount seniors typically pay for medical costs not covered by Medicare can vary widely depending on their individual circumstances and healthcare needs.
According to a recent estimate by the Kaiser Family Foundation, seniors on average spend over $5,000 per year on out-of-pocket healthcare expenses not covered by Medicare.
Keep in mind that some people will have significantly higher or lower out-of-pocket costs. For example, someone with a chronic condition such as diabetes may have higher costs for medications and medical supplies. Additionally, someone who is healthy and doesn’t require much medical care may have lower out-of-pocket costs.
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Can Medical Costs not covered by Medicare lead to bankruptcy?
Some seniors may go bankrupt due to medical expenses. According to the same Kaiser Family Foundation report, medical expenses are a leading cause of bankruptcy for older Americans. High out-of-pocket costs for healthcare not covered by Medicare, such as long-term care, dental care, vision care, hearing aids, and Medicare co-insurance fees can be a significant burden for many seniors, particularly those on a fixed income. Additionally, unexpected medical expenses, such as a major illness or injury, can also contribute to financial hardship.
The study found that the percentage of older Americans filing for bankruptcy because of medical expenses has risen in recent years, and the problem is more severe among older adults with lower incomes and less education.
It’s important to note that while Medicare can help cover many of your healthcare expenses, it does not cover all of them. Having additional coverage options, such as Medigap, Medicare Advantage, or a stand-alone Prescription Drug Plan (Part D) can help reduce the financial burden of out-of-pocket expenses, but it may not completely eliminate the risk of medical bankruptcy.
Can Medigap cover the cost of Medical Expenses not covered by Medicare?
Depending on the plan you select, Medigap plans can cover some or all of the out-of-pocket expenses that Medicare typically passes on to patients in the form of co-insurance or deductibles. These Medicare cost-sharing fees can add up to thousands of dollars each year. Medigap will not pay, however, for services not covered by Medicare such as dental, vision, or prescription drugs. To learn more about Medigap and to get a price, click the buttons below.
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