Medicare/Supplement Insurance

Supplemental Insurance Helps to Cover What Medicare Does Not

Medicare Supplement Insurance is additional insurance you can purchase to help supplement the financial burden of healthcare. Though it pays for many health care services, Original Medicare was never intended to cover all of the health care costs of those who benefit from it. In fact, on average there is a 20% gap between what Medicare will pay for and what it won't. This includes co-payments, co-insurance, and deductibles. That is where Medicare Supplemental Insurance comes in. It helps you cover that 20% gap, which is why it is often referred to as Medigap insurance.

How Supplemental Insurance Works

Supplement insurance picks up where Medicare leaves off. When you have Medicare-approved health costs, your Original Medicare will cover its share first, and then your Medigap pays its share--which, otherwise, would come out of your pocket. Supplemental insurance policies are divided into different plans, each offering different benefits.

Medigap Policies are offered by private insurance companies. The federal government decides and regulates what each plan covers, so plans remain the same across providers. Before any insurance provider can offer supplemental insurance, they must be approved by the state government. Once approved in a state, the individual providers may set their own prices for policies.

What Exactly Does Supplemental Insurance Supplement?

It is important to understand what Medigap actually supplements. Unlike Medicare Select, Medicaid and Medicare Part D, Medical Supplemental Insurance does not provide any new benefits. It is intended to help you pay for the benefits Medicare Parts A & B don't cover, including:

• Medicare Part A co-insurance - Every Medigap plan includes this benefit, which covers the co-insurance on hospital costs and up to 365 days of additional coverage after Medicare hospital benefits have run out.
• Medicare Part B co-insurance or co-payments - Medigap plans cover anywhere from 50% -100% of co-payment and co-insurance.
• Blood - Most of the blood used in hospitals is subsidized, but if the hospital has to purchase blood for you, Medigap plans that cover blood will pay for the first 3 pints.
• Part A hospice care co-insurance - Depending on your plan, this benefit will cover 50%-100% of co-insurance or co-payment requirements on Part A hospice care expenses.

Additional Considerations

• Medigap policies only cover one person - If your spouse needs coverage, you both need to purchase a policy.
• Enrollment - Anyone with Medicare Parts A & B is eligible for Medigap. The best time to enroll is within the first 6 months after turning 65, known as the open enrollment period. During this time, insurance companies must sell you any Medigap policy they offer, and cannot charge you more or make you wait for coverage to start because of a preexisting condition.

If you are interested in learning more about Medicare Supplement Insurance plans, availability and pricing, call USMedicare today to speak directly with a licensed agent. We will answer your questions and help you choose a Medigap plan and provider in your area.