Chapter 4

Reducing Your Out-of-Pocket Expenses in Medicare

In This Chapter

arrow Introducing Medigap supplemental insurance

arrow Getting help from your state

arrow Decreasing your prescription drug costs with Extra Help

arrow Checking out other ways to cut costs

Yes, Medicare comes with a lot of out-of-pocket costs: premiums, deductibles, and co-pays, not to mention those services you pay for because Medicare just doesn’t cover them. If you’re lucky, you may have retiree benefits from a former employer that help reduce them. (I consider how other insurance fits in with Medicare in Chapter 8.) But otherwise, perhaps you’re gulping a bit and wondering whether you can find any respite out there. Help does exist, though it takes several different forms that don’t apply to everybody:

  • Medigap insurance: If you can afford it, you can buy Medigap supplemental insurance to lower your costs — which essentially means paying extra (through Medigap premiums) to pay less (in deductibles and co-pays that traditional Medicare charges). Topsy-turvy as it sounds, you can actually save quite a lot of money this way. About ...

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