Medicare Supplemental Insurance
MedicareSupplementalInsurance.org is an independently-owned website serving consumers who are considering Medicare supplemental insurance coverage for them or their loved ones. This site provides free, objective information on Medicare supplemental insurance (also known as "Medigap" and "Medicare Supplements"), along with quotes from leading insurance companies.
What is Medicare Supplemental Insurance?
Medicare Supplemental Insurance is a health insurance policy sold by private insurance companies that works in conjunction with Original Medicare to reduce the amount of out-of-pocket costs a Medicare enrollee will have to pay. (Note: "Medicare Supplemental Insurance" is typically also referred to as "Medigap" and "Medicare Supplement". It is called this because it provides additional coverage beyond what Medicare offers, and fills in the gaps for the share of costs that Medicare passes along to you.) This is an additional benefit that many Medicare enrollees choose to purchase on top of the Original Medicare benefits they are already provided by the government. While Medicare supplemental insurance coverage is optional, 18% of Medicare enrollees have purchase some sort of Medigap coverage, according to the Kaiser Family Foundation.
What is Medicare and How Does It Work with Medicare Supplemental Plans?
Original Medicare (Medicare Part A and Part B) is a federally-funded medical coverage program that is primarily for America's seniors (although it covers people with certain disabilities as well). It covers medically-necessary hospitalization (Part A of Medicare) and medically-necessary doctor services (Part B of Medicare). While your Part A and Part B coverage will pay for the majority of your medical bills, you will still be responsible for Co-Pays, Co-Insurance, deductibles and premiums. For 2010, the Part A and B premiums, deductibles, co-payment and co-insurance amounts are here by Medicare.gov. This is the share of the cost that you owe for your Medicare coverage.
What Does Medicare Supplemental Insurance Offer?
A Medigap plan will coverage for your share of medical expenses not covered by Original Medicare. For example, some of the Medigap plans will cover your deductible amounts. In addition, certain plans will also cover expenses not provided by Medicare, such as foreign medical emergencies. A full set of benefits by plan type is shown in our Medicare Supplemental Insurance Plan Matrix.
One additional benefit of a Medigap policy is to place an upper limit in your out-of-pocket medical expenses in the event of an unexpected injury or illness. Many seniors are without a steady source of income and they therefore have to live according to a set budget. An unexpected illness or injury can result in thousands or tens of thousands of dollars in medical expenses. Even with Original Medicare coverage, the resulting bill can still be enough to make a significant impact onto your retirement savings.