What is Medicare Supplement Insurance?

Medicare Supplement Insurance, often called Medigap, is an additional insurance policy that you can purchase from private insurance providers to help cover the expenses left after Original Medicare has paid its part. Medicare Parts A & B only cover about 80% of typical healthcare costs, and supplemental plans help beneficiaries cover the 20% gap.

Medigap policies are divided into plans A-N, each of which provides a different set of benefits. You need to decide which benefits you want and find a plan that includes them all.

Supplemental insurance plans are defined and regulated by the federal government, so there is no difference in benefits offered by different insurance providers. While supplemental insurance policies are uniform across providers, each insurance company is allowed to set its own price. Prices vary depending on where you live, your health, and the plan you choose.

Medigap is available for anyone enrolled in Medicare parts A & B. The plans are individual, so if you and a spouse both want supplemental insurance, you each need to purchase an individual plan.

The best time to purchase supplemental insurance is in the first 6 months after you have turned 65 and have enrolled in Medicare Part B. During this time, an insurance provider is required to sell you any of the Medigap policies they offer regardless of preexisting conditions. You can still enroll after this period, but it might cost more.

For more complete information, consult this 56 page pamphlet from Medicare.gov, or just call USMedicare and to speak directly with a licensed agent.