South Dakota Medicare Supplement
Compared to other American states, South Dakota is small, population-wise, logging around 892,000 as of 2019, making it the 46th largest state in the country in terms of headcount. Of this number, an estimated 132,000 are aged 65 years and up, 24 percent of whom are veterans and some 24,000 are still part of the workforce. The median household income for a senior citizen in South Dakota is $33,893, which is pretty good considering that 50 percent of Americans aged 65 years and older have incomes of less than $24,225 per year.
However, according to the US Census Bureau, the number of seniors in South Dakota can only continue to increase, with no signs of a reversal. This is mostly caused by the aging of the so-called “baby boomer” generation. Coupled with the rapid rise in the cost of healthcare products and services, it’s apparent that what South Dakota seniors are earning per year is not enough to meet all the related expenses that crop up in their advancing age. This is why the likes of Medicare, Medicare Advantage, Medicare Supplements, and more are an important point of discussion for those approaching or are already in this age group.
Why Medicare is Important
As healthcare costs are only bound to rise, Medicare offers a lifeline that ensures good health is within reach of many elderly Americans. The benefits are felt both on the side of the individual and his or her family. By providing a means for the senior citizen to be healthy and financially independent, Medicare (and similar insurance programs) help ease the possible burden that an illness or disability might pass on to the younger members of the family. Even for seniors with a hefty retirement bonus, such programs ensure that the money one has worked hard for through many years can be poured into enjoyable and leisurely pursuits, instead of being stuck on medical bills.
There are plenty of benefits from being part of the Medicare program. Part A helps shoulder hospital-related expenses, such as inpatient care, hospice care, home health care, and skilled nursing facility care. Part B covers most outpatient services, such as clinic visits and professional fees, durable medical equipment, preventive services, and home health care. Part A and B are the basic inclusions to a standard Medicare coverage, but you may also opt to add a Part D coverage, which subsidizes prescription drug costs. Part C, also called Medicare Advantage, is a similar program that is sold through private providers for those who wish to have the same benefits but do not want to obtain Part A and Part B.
As mentioned, as healthcare expenses increase, it has become more difficult for the government to sustain all possible healthcare products and services that a senior citizen might need. For this reason, Medicare Supplements (also called Medigap) were created. Medigap consists of 10 policies offering a standard list of benefits with varying levels of coverage. They are sold via private insurance agencies and, while prices for monthly premiums differ, offer the exact same features regardless where you are in the U.S.
Why Medicare Supplement is Necessary
Many argue that having the original Medicare is enough but, realistically speaking, it covers only the barest minimum. There are new procedures and treatments that are not included in its benefits. In order to help seniors cope with the evolving nature of the healthcare system, plus the uncertain nature of government support for public health services, having a supplementary Medigap plan, though optional, is already seen as necessary.
The most common reason why you need a Medigap plan is that most aging adults are living off a fixed income source and do not want to use up their retirement funds to finance their medical needs. Medicare covers a good number of procedures and services, but there are also a lot of these that it does not shoulder. Medigap plans are designed to take care of most of those items that original Medicare does not.
Another good reason why a Medicare Supplement is important is that it is renewable for life, as long you continue paying your monthly premiums. In addition, the insurance provider is not allowed to cancel your plan regardless of the amount or frequency of the claims you make. Third, you can customize your coverage according to what you need, giving you the option of adding prescription medication coverage on the side. Pricing for Medigap plans vary according to the level of coverage they offer, so you can choose the lowest-priced option if you are generally in good health. You will not be forced to pay for a policy with features that you do not really need.
Medigap Plans: What They Include and Do Not Include
Medigap plans’ basic inclusions are the following:
– Hospital expenses and coinsurance for Medicare Part A
– Coinsurance and copayment for Medicare Part A
– Coinsurance and copayment for Medicare Part B
– Coinsurance for skilled nursing facility care
– Blood (up to first 3 pints)
– Part A deductible
– Part B deductible and excess charges
– Foreign travel emergency expenses (up to the plan’s limits)
They do not include dental or vision care, long-term care (nursing home, etc.), private duty nursing, eyeglasses, and hearing aids. If you want coverage for these, you will have to purchase an independent policy or ask your insurance provider if they can offer it as a rider.
Still have questions about Medicare and Medicare Supplements in South Dakota or other states? Our team of licensed and expert insurance advisers can help. We can assist in identifying your options so that you can choose the best policy that will suit for current status, health projection, and budget. Don’t hesitate to contact us at 1-800-791-0150.
