Is Medicare Supplement a Scam

Is Medicare Supplement a Scam?
Make Sure Read This Before You Sign Up For A Medicare
Supplement
Today I’m going to say something very controversial. Medicare Supplement Insurance is
a Scam.
If you have watched any of my previous videos about Parts A and B of Medicare, you
know that a hospital stay will cost you roughly $1,500. Part B, which covers everything
other than hospitalization, comes with a 20% coinsurance (your portion of the bill).
Now, 20% of an unknown bill can be quite scary, which is the reason so many people
purchase Plan F, G, and N. These are the most popular plans on the market today. If
Medicare is picking up 80% of the bill why do you need a supplement? Let’s break this
down a little further.
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Why I believe it’s a Scam?
I know what you're thinking now. I have one of these plans. Did I get sold a plan I don’t
need? The short answer is maybe. Let me illustrate this for you because most insurance
agents are either unable or unwilling to help you make a good decision. What I'm about
to show you is a price tool provided by Medicare for planning outpatient procedures.
(https://www.medicare.gov/procedure-price-lookup/). Let’s see what the 20%
Coinsurance actually costs. I have selected a not very popular procedure a
Colonoscopy, so let’s get started. When the doctor starts your exam, they find a polyp.
Typically, there is a removal of the polyp and then a biopsy to make sure it isn’t
cancerous. When that explanation of benefits is generated it will show what the doctor
billed for the procedure, what Medicare paid, and what your responsibility is.I think
most people would think this will cost them thousands of dollars without one of the
popular Medicare Supplement Plans. The shocker is your total bill for three separate
procedures is $421. So why are you paying thousands of dollars a year when Medicare
is paying 80% of the bill. I know the answer and it’s because this is what everyone else
is buying, Right?
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https://www.medicare.gov/procedure-price-lookup/, EOB, Explanation of Benefits

Stop Following the Herd off the Cliff?
The national average price for the most popular plan G for a 65 year old is $1728 for
the year. It also carries a $233 deductible. So the colonoscopy with the most popular
Medicare Supplement plan would have cost you $1961 instead of $421 with Original
Medicare. So, does it really make sense to have Plan G or any of the most popular
supplements in general? The answer is no, unless you are expecting to have more than
3 hospital stays or have open heart surgery every year. Look, the fact of the matter is
as you age your body will breakdown and you will incur more medical bills. You will
need money to pay for these medical bills. What if I told you there is a better way? A
way to stop following the herd off the cliff? A way to keep more money in your pocket
and less in the insurance companies.
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The Solution High Deductible Plan G?
There is a very little known supplement that is called High Deductible Plan G. The
reason why it’s not very well-known to consumers is because the insurance agent
doesn’t make a very big commission. An insurance agent is paid a percentage of the
premium. The bigger the premium the bigger the commission. So, that means it’s rarely
going to be offered to most consumers. The national average cost for High Deductible
G for the year is $576. Meaning you would have saved $1152 for that same
colonoscopy procedure. What if that was the only procedure you had over a 5 year
period? The premium savings would have been nearly $6000. That is $6000 you kept
in your pocket and not the insurance companies. Additionally, you could have been
taking the money saved and self-funding a claims account at a guaranteed 3% interest.
Those that are still scared of the 20% Coinsurance have a stop gap of approximately
$2500 in 2022.
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Conclusion – Take Away!
I would like say if you have chronic conditions and aren’t able to budget a $2500
deductible a traditional supplement may be a better option. Even though the vast
majority of my customers are healthy today most of them need the savings for medical
payments and emergencies in the future and not just blindly giving it to the insurance
companies. Just because your Grandparents, Parents, and Neighbors have purchased
the most popular Medicare Supplement plans in the past doesn’t mean you have to. It’s
not their fault afterall, they weren’t given all the facts to make a good decision.
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