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Others have a secret account or credit card or some sort of hidden debt. The pros and cons of cashOn the upside, paying with cash can be a smart move for those trying to stick to a budget. In this case, spending money is divided up into envelopes representing your monthly expenses, such as groceries and gas. "Adhering to this approach keeps you from going into credit card debt," he said. But paying with cash forgoes the rewards and protections that come with credit.
Persons: Nopphon, Rossman Organizations: Istock, Getty
watch nowOther beneficiaries instead decide to pair Parts A and B with a standalone Part D plan and, often, a Medigap plan, which covers part of the out-of-pocket costs that come with Parts A and B. Basic Medicare has no out-of-pocket limitIf you have only basic Medicare, there is no cap on what you might spend in any given year. "If you can find a plan that has a lower out-of-pocket limit, such as $3,000 or $4,000, that is a benefit to you." "Both Medigap and Medicare Advantage Plans do a good job of this, since most Medigap plans cover the 20% [coinsurance] and Advantage Plans have caps on Parts A and B spending." Part D does come with catastrophic coverage that kicks in once out-of-pocket expenses reach $7,400 in a given year, Roberts said.
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