Medicare Time: First, Why Do You Buy Supplemental Medicare Insurance?

As "Medicare time" (see Note) starts again, it's worth a short post on "Why?" 

We're getting old so maybe we don't remember why we buy supplemental Medicare insurance. Unfortunately there is no easy way to say this: You buy supplemental Medicare insurance because Original Medicare is crappy insurance.  If you're unsure of that statement, remind yourself that over 96% of us on Original Medicare get some kind of Medicare supplement. We can't all be wrong. (The other 3% or so must be very rich or betting they are going to be very, very lucky.)

In what way is Original Medicare crappy insurance? To answer that, remember why you buy any kind of insurance -- fire, auto, theft, disability, etc. It's to protect yourself against getting wiped out financially. Original Medicare does not provide that protection. It provides limited benefits in general and in particular it does not provide catastrophic coverage or include annual out of pocket limits. That's why you buy supplemental Medicare insurance.

There are all kinds of supplemental Medicare insurances and I'll post about their how tos and why not tos during the next 30-40 days. But whatever choice(s) you make, you want to make sure that you do do something when it comes to supplementing your Medicare.

NOTE: Everyone calls October 15 to December 7 "Medicare open enrollment time." It's not really. It sounds like a nit on my part I know but calling this time of year "Medicare open enrollment time" may confuse people not yet on Medicare. And supposedly there are tens of thousands of people in their early 60s lining up every week to join those of us over 65 in "old age." So just in case you're 64 (or 63 or 62), now is NOT the time you sign up for Medicare. It's the time when you review Medicare supplemental insurances you already have in preparation for next year. (That's right: I said Medicare insurances, plural. See other posts on this blog. Welcome to old age in America.)