Medicare Supplemental Insurance

Medicare supplemental insurance is designed to pay for the medical expenses that are not covered by original Medicare. This includes things such as deductibles, copayments, and coinsurance. It is also known as Medigap. It is important to note that a Medigap policy is not the same as a Medicare Advantage plan.

A Medicare Advantage Plan is a type of Medicare that is provided by private companies instead of the federal government. It is also known as Medicare Part C. A Medigap policy will supplement the original Medicare policy. Original Medicare will pay its share of the costs. After that, Medigap will pay the remaining costs.

How Medigap Policies Work

Your Original Medicare will pay its portion of the benefits and then Medigap will pay the rest. Here is an example of how this will work. You receive a hospital bill that costs $10,000. Medicare pays $8,000. Your supplemental insurance will pay the remaining balance.

You will have to make a payment to a private insurance company every month. You make this payment in addition to the Medicare Part B payment. The place you live and your location will determine how much you will have to pay.

Who Can Get Supplemental Insurance?

If you are enrolled in Medicare, then you will likely qualify for supplemental insurance. However, if you are under the age of 65 and have a disability, then you may not be able to get supplemental insurance. States are not required to provide people who are under the age of 65 with supplemental insurance.

In order to get Original Medigap, you must have Medicare Part A and Part B. If you already have an Advantage Plan, then you can still apply for Medigap. However, you will need to drop your Advantage Plan coverage before the Medigap coverage begins.

It is important to note that your Medigap coverage will only cover one person. If you are married, then you and your spouse will have to apply for a separate plan. You can get your coverage from any insurance provider in your state that is licensed to sell it.

Your Medigap policy will not cover prescription drugs. You will need to get Medicare Part D coverage in order to get your prescription medications paid for. You cannot get supplemental insurance if you have a Medicare Medical Savings Plan.

What Is Not Covered By Medigap?

Medigap will typically not pay for long-term care, which includes home health care and nursing home. It will also not pay for routine dental care, eyeglasses or hearing aids. Additionally, Medigap will not cover private-duty nursing.

Do You Need Medicare Supplemental Insurance?

Medicare supplemental insurance is a worthwhile investment. Your medical costs will likely go up as you get older. You may also find yourself needing more care as you get older. That is why you can save a lot of money by getting Medigap. However, if you have supplemental retiree health insurance from your employer, then you do not need Medigap.