Supplemental Insurance Explained

What Is Medicare?

Medicare is the huge federal health insurance plan that covers millions of American senior citizens and disabled people. This benefit is very important to most of the people who qualify for it. It helps these people cover a variety of medical services.

However, Medicare does not cover all services. It does not always pay the full amount for services that it does cover. If you just have the original Part A and Part B, you may still have to pay deductibles, co-payments, and for uncovered services. Even people with red, white, and blue cards may still get bills!

There are a variety of ways to maximize Medicare benefits though. Some beneficiaries choose to purchase a Medicare supplement to help cover more medical costs. '

There is not one perfect choice for every person, but it helps to understand your choices.

What Are Medicare Supplements?

Supplements help cover the "gaps" in Medicare coverage. That is why they are called Medi-Gap policies sometimes. They are intended to work with the original plan in order to provide more coverage.

Here a couple of things to know about these private plans.

Supplements are sold by private insurance companies. They are not sold by the federal government. While supplements are marketed and managed by private insurers, they are closely regulated by the government. The actual plans are standardized. They have names like Plan F and Plan G. These should not be confused by Part A and Part B, which are the parts of the original Medicare. Different plans cover different things. Plans with more coverage will probably cost more. The plans are standardized, but different insurers charge different prices. Prices will also vary by your location, and may also vary by your age and other factors.

Many seniors are very happy with the health benefits provided by Medicare and a supplement. However, you can see it is important to shop around for the right plan and insurance company in your local area. Supplements do come at a cost, but they can help people control and manage their out of pocket health costs.

Supplements vs. Advantage vs. Part D

Note that supplements are different from Medicare Advantage (Part C) or Medicare prescription (Part D) plans. All of these plans are sold by private companies. In addition, you may be able to purchase prescription coverage with you supplement, but they are not the same thing!

If you are shopping for the best way to use your own Medicare benefits, it is important to understand your choices.

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