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Supplemental Insurance

Understanding Supplemental Insurance


Health insurance will only go so far and certainly won’t cover all of one’s expenses in a myriad of cases, which can all start to add up quite significantly over a period of time. In such instances, good supplemental insurance can be a figurative life-saver. Medical expenses that this type of plan covers will normally include deductible payments, co-payments, co-insurance and more. Some plans will even provide coverage for any necessary care that is provided for the policyholder while he or she is outside of the United States. This kind of insurance coverage is also known as a “Medicare Supplement Plan” or “Medigap” insurance.

Who Can Benefit

For the “Medigap” policy, all who have Medicare Part A and Part B can qualify to purchase this extra coverage from any licensed insurance provider in their state. Understand that this coverage is intended for one individual only. It is vital that one’s spouse understands that he or she will need to obtain a separate insurance plan for him or herself. Also an insurance company will not cover a person if he or she is already enrolled in a Medicare Advantage plan (Part D).

Enrollment Period

Anyone who qualifies should seriously consider applying for Medigap coverage. The best time to apply is during an open enrollment period, which is the first six months after attaining 65 years of age or after having enrolled in a Medicare Part B plan. The insurance companies do not charge excessive premium rates due to pre-existing conditions and one has guaranteed coverage. (Keep in mind that the insurance provider is allowed to deny coverage or charge higher premiums for those applying outside of open enrollment.)

Medigap Policies

The federal government oversees all supplemental insurance plans that are identified by the letters A through N. These kinds of plans are standard in all states, with Wisconsin, Minnesota, and Massachusetts being exceptions. This insurance coverage provides several different plan options depending on one’s medical needs and budget. Some providers give significant price breaks, so it is valuable to investigate the available Medigap discount options with an insurance professional.