If you're a retiree, you know that healthcare costs can be expensive. While Medicare helps cover some of the costs associated with medical bills, there are still a few things it doesn't cover. That's why many retirees choose to purchase supplemental insurance to cover the difference. Here's what you need to know about Medicare supplement insurance and how it can help protect your finances in retirement.

What is Medicare Supplement Insurance?

Medicare supplement insurance, typically called Medigap insurance, is an insurance that supplements the coverage you receive from Medicare. In other words, it helps cover the costs that Medicare does not cover. Medigap plans also provide coverage for emergency care while traveling abroad and some prescription drugs.

How Much Does Medicare Supplement Insurance Cost?

There are many different types of Medigap plans available from private insurers. Like any insurance policy, the cost of Medigap varies greatly and depends on many factors, including:

• The plan you choose
• Where you live
• Age of the policyholder
• Pre-existing conditions

There may also be additional fees for certain types of coverage, such as vision or dental care, so it's important to understand all of the costs associated with each plan before making a decision.

Which Plan Is Right For You?

Before making any decisions about supplemental insurance plans, it's important to carefully research all your options to make an informed decision about which one will best meet your needs and budget constraints. You should consider many factors, such as:

• Coverage. Healthcare coverage needs are different for everyone. For example, one person may need higher coverage for durable medical goods, like hearing aids, while another may need to focus on the cost of their prescription drugs. Know what coverage is important to you before deciding on a Medicare supplement insurance plan.
• Budget. You need to weigh the cost of the policy against the cost of paying out of pocket for any medical expenses not covered by Medicare. Understand what expenses you are comfortable paying for and how everything fits into your overall budget for retirement.
• Pre-existing conditions. While you can't be denied coverage with Medicare, a Medigap policy may impose a brief waiting period before covering any pre-existing coverage. If you have a pre-existing condition, this could make a difference in which plan you choose.

When it comes to preparing for retirement, having adequate healthcare coverage is essential. Fortunately, several options are available to help seniors pay for medical expenses not covered by Medicare. Medicare supplement insurance is one option that can provide you with additional coverage and peace of mind. Contact a local insurance company, such as The Retirement Cafe, to learn more.