One of the most alarming and little known gaps is the Medicare Part B Excess Charges. Medicare Excess Charges can be levied by doctors, specialist, surgeons and facilities. They are a 15% surcharge above what is allowed to be billed to Medicare.
Consider this example: If you have a $100,000 surgery, Medicare will typically pay 80% and your supplement will pay all or a portion of the remaining 20%. If you do not have a plan that covers the excess charges, you could be responsible for another 15% in addition to the 20% that Medicare didn’t cover. In this case that would be an additional $15,000! In other words, you could be responsible for 35% of Part B eligible charges if you don’t have coverage for excess charges.
Our advice: Do not consider a Medicare supplement plan that doesn’t cover excess charges. Otherwise, you expose yourself to risk. Once you understand the Medicare excess charges, you come to realize that there are really only 2 Medicare supplements you should consider: Medicare Supplement Plan F and Plan G.
Now that you have narrowed your choices down to the three plans that cover Medicare excess charges, you are ready to begin considering insurance companies and premiums. Every insurance company that offers Medicare supplement plans will give you the same benefits. Continue to the next page where we will discuss how to choose your insurance company.
If you would like detailed information regarding Medicare supplement plans, click here to download the booklet: Choosing a Medigap Policy or visit www.medicare.gov for more information.