Medicare Supplement Insurance
Medicare Supplement Insurance, sometimes also called "Medigap," is insurance intended
to do exactly what its nickname suggests: fill the gaps in Original Medicare's coverage.
Medicare Supplement policies are sold by private insurance companies and are a way
for many Medicare recipients to help pay some of the health care costs that the
Original Medicare Plan doesn't cover.
If you receive Original Medicare and have a Medicare Supplement policy, then Medicare
and your Medicare Supplement policy will pay both their shares of covered health
care costs. Often, when you buy a Medicare Supplement policy you must have Medicare
Part A and Part B. In addition to paying the monthly Medicare Part B premium, many
Medicare Supplement policies require you to pay a premium to the insurance company
that issued that policy.
Insurance companies are only permitted to offer consumer a "standardized" Medicare
Supplement policy. These Medicare Supplement policies all have specific benefits
so that consumers can compare them easily. Medicare has approved 12 of these standardized
policies, (which are labeled as Plans A through L), each of which has
a different set of basic and extra benefits. Consumers should carefully compare
the various Medicare Supplement policies because costs can vary and not all of the
12 plans are available in all areas. However, the benefits in any Plan A through
L are the same for any insurance company. (In other words, regardless of which insurance
companies issue the policies, any policies with the same letter designation have
the exact same benefits.)
Seniors exploring Medigap options should keep in mind that spouses must each buy separate Medicare Supplement insurance.
Your policy won't cover any health care costs for your spouse, and vice versa.
This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. United Financial Systems, Corporation is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.