Supplemental Insurance

Information on Supplemental Insurance


Health insurance only goes so far and won’t cover all your bills in many cases and it all can start to add up (and terrifyingly so) over a period of time. In these cases, supplemental insurance coverage can be a proverbial life saver. Medical costs that this kind of plan covers include deductible payments, co-payments, and co-insurance. Some plans will also provide coverage for the care provided while being outside of the United States. This type of insurance coverage is also known as “Medicare Supplement Plan” or “Medigap.”

Who is Eligible?

For what is known as the “Medigap” policy, all who carry Medicare Part A and Part B can qualify to buy this coverage from any licensed insurance company in their state. Keep in mind that this coverage is intended for one person only. It is important that your spouse understands that he or she will need to acquire a separate insurance plan for him or herself. Also an insurance provider will not cover you if you are already enrolled in a Medicare Advantage plan (Part D).

Period for Enrollment

Anyone who meets or exceeds the above mentioned eligibility parameters should consider applying for Medigap coverage. The best time for this is during the open enrollment periods, which are first six months after attaining 65 years of age or after having obtained a Medicare Part B plan. The insurance providers do not charge excessive premium rates due to pre-existing conditions and you have are guaranteed coverage. However, the insurance company is allowed to deny coverage or charge higher premiums for those applying outside of open enrollment.

Medigap Policies

The federal government oversees supplemental insurance plans that are identified by the letters A through N. The plans are standard in all states, with the exceptions being Wisconsin, Minnesota, and Massachusetts. These insurance policies provide different plan options depending on one’s medical needs and desired rates for coverage. Some providers allocate household discounts to policyholders, so it is worthwhile to check with your agent on the available Medigap discounts available.