What is Medicare Supplemental Insurance?

Medicare supplemental insurance companies provide health insurance for those who receive Medicare benefits, yet find that all of their needs are not covered by the program. Medigap insurance plans, as they are also known, cover co-payments, coinsurance and deductibles that are not covered by Medicare. For those on fixed incomes, an unexpected deductible or co-payment can cause acute financial distress. Medigap insurance plans serve as a bridge between the Original Medicare plan coverage and the expenses you are expected to cover on your own. Medicare supplemental insurance also covers medical services that are not covered by Original Medicare. For example, should you travel outside of the U.S. and require medical services you would not be covered by Medicare.  In this case, it would be important to acquire an adequate Medicare Supplemental Insurance plan prior to traveling abroad.

Medicare Supplemental Insurance Companies – Which One is Right for You?

When deciding which of the many Medicare Supplemental Insurance Companies to choose, it is first important to consider that no Medigap policies cover your percentage of healthcare costs of Medicaid, Medicare Advantage Plans, TRICARE, optional Medicare Prescription Drug Plans, union/employer health plans,  or VA benefits.

Any health insurance company that is licensed in your state is eligible to sell you Medigap insurance. However, if you are already covered by the Medicare Advantage Plan or Medicaid, Medicare Supplemental Insurance Companies are not able to sell you Medigap insurance.  Medicare supplement health insurance is the buffer for those who do not have those forms of coverage, yet are unable to absorb co-pays on their own.

Do You Qualify for Medicare Supplement Health Insurance?

In order to participate in a Medicare Supplemental Insurance plan, you must first have Medicare Part A and Medicare Part B. It is important to note that Medicare supplemental insurance companies must stay in strict compliance to federal and state laws regarding Medigap insurance plans. These Medicare Supplemental Insurance plans are standardized according to State guidelines. Medigap insurance plans are identified by various letters of the alphabet, and offer differing Medicare supplemental benefits. Not all Medicare supplemental insurance companies offer every plan that is available in the state, so it is wise to compare all plans before speaking with a particular company or agent.

Medicare supplemental insurance companies are not required to sell every available Medigap plan, but they must offer Medigap Plan A. They must also offer either Medigap Plan C or Plan F. Some Medigap insurance plans pay your Medicare deductible, while others only cover coinsurance after you have paid the deductible.

Only you know which plan is right for you according to your own health and lifestyle. Examine your own needs currently and speculate on those in your future prior to choosing one of the Medicare Supplemental Insurance Companies offering Medigap Insurance in your state.