Medicare supplemental health insurance provides incremental coverage for persons over the age of 65 for expenses not covered by a standard Medicare plan. Medicare Supplemental Insurance is also often referred to by health insurers as “Medigap” insurance. Medicare Supplemental Insurance can provide supplementary prescription drug coverage, and may also cover wellness visits and preventative medicine not covered by traditional Medicare. Medicare supplemental health insurance can also be used to pay for skilled nursing and foreign travel emergency care, standard Medicare deductibles, stays over the day limits of coverage, and for Medicare co-pay amounts.

Who Needs Medicare Supplemental Insurance?

Medicare has been designed to provide for the medical needs of the elderly. While standard Medicare is a broad federal program, it does not cover for all the medical needs of elderly individuals. There are gaps in coverage, most notably in prescription drug coverage, coverage for extended hospital stays, specialized in-home care, long-term care, and travel abroad.

If you are already receiving Medicare benefits, Medicare Supplemental insurance is available from private insurance companies to make up for any gaps in coverage. Medicare Supplemental Insurance policies are quoted by and purchased from a qualified health insurance provider, which must adhere to federal and state health insurance regulations. You and your spouse must each buy separate Medigap policies. Your Medigap policy will not cover any health care costs for your spouse.

How Do I Obtain Medicare Supplemental Insurance?

An applicant’s initial step should be to understand the current Medicare coverage before shopping for Medicare supplemental insurance. You should also be sure that you are already receiving the maximum allowed benefits under standard Medicare before shopping for additional Medicare Supplemental insurance

Once you are certain you require Medicare Supplemental insurance, there are many options available. There are 12 available Medicare Supplemental insurance in most states, designated Plan A through Plan L (with the exception of Massachusetts, Minnesota and Wisconsin). Each of the letters designate plans with different levels of deductibles, co-pays, coverage and related premiums.

The most affordable plans are the Medicare SELECT policies, Plans F and J. These Medicare SELECT policies cost less in most cases, but have higher deductibles. With the Medicare SELECT policies, you have to use specific doctors to receive full coverage. The plans are more affordable to most seniors because the physicians that are on the "Select" list have agreed to accept "assignment", a reduced fee specified in the plan for Medicare patients. With any Medicare Supplemental Insurance other than a SELECT plan, you may see any doctor or go to any hospital for treatment. The amount of coverage you receive and your monthly cost will be based upon the plan you choose.

It is important to compare Medigap policies because costs can vary between plans. The benefits in any Medigap Plan A through L are the same for any insurance company. Each insurance company decides which Medigap policies it wishes to sell.

Additional Resources:

- Medicare Supplemental Insurance Guide by HealthInsuranceFinders.com

- Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare by CMS