Beware: Medicare Doesn’t Cover Everything

Many retirees get an unpleasant surprise after turning 65 and signing up for Medicare: It doesn't provide complete coverage of health care costs. In fact, there are some very large gaps that can be financially devastating to ordinary Americans. A recent study from Fidelity estimated that the average 65-year-old married couple would need about $280,000 in savings to cover out-of-pocket costs, including Medicare deductibles, copays, prescription drugs, Medicare premiums, dental and vision care. Deductibles and copays Part A Medicare Part A (hospital insurance) still exposes you to the following deductibles, as of 2019: Inpatient hospital deductible: $1,364Daily out-of-pocket hospital costs…

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Two Popular Medigap Plans Closing to New Beneficiaries in 2020

Two of the most generous and popular Medicare supplement (Medigap) plans are getting phased out starting next year, but only to new beneficiaries. Beginning in 2020, plans F and C will no longer be available for those just joining Medicare. Plan F has been the top-selling Medigap plan for years, as it provides the broadest coverage of any of the Medigap plans. While premiums are relatively high, once you are enrolled you won't have to pay anything out of pocket for medical services covered under Medicare. What do Plan F and Plan C cover? The two soon-to-be discontinued plans both…

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