Supplemental Insurance

The Process of Acquiring a Supplemental Insurance Plan

A supplemental insurance plan is an additional insurance coverage provided by a private insurer to cover the medical costs and out of pocket expenses that the original insurance does not cover. Some of the medical expenses that the plan covers include copayments, deductibles, and coinsurance. Some plans also cover the medical care provided while traveling out of the United States. The other names for this type of insurance coverage are Medicare supplement plan or Medigap.

Eligibility Criteria

Everyone with a Medicare Part A and Part B qualifies for the Medigap policy from any licensed insurance company in their state. The insurance policy only covers one person. Therefore, your spouse needs to get a separate insurance coverage from yours. Additionally, an insurance company will not provide coverage if you are already in the Medicare Advantage plan (Part D). In this case, an insurer should leave the existing Part D insurance before enrollment into the Medicare Supplement Plan.

Enrollment Period

Anyone who passes the above eligibility criteria should consider making an application for the Medigap coverage. The best time to apply is during the open enrollment period, which is six months from the first day that you attained 65 years of age or received the Medicare Part B plan. The insurance companies do not charge high premium rates due to a pre-existing condition. Additionally, you have a guaranteed issue, meaning that the insurance provider may not deny you coverage. However, the insurance company has the right to deny coverage or charge higher premiums for anyone applying at any other time.

Various Medigap Policies

The federal government regulates the supplemental insurance plans that run by letters A through N. The plans are the same in all states except for Wisconsin, Minnesota, and Massachusetts. The insurance companies indicate the plans by letter A to N. The insurance policy provides different plans to choose from depending on one’s medical needs and coverage rates. The plans are the same in all companies, although other insurers may offer other additional plans. However, the rates may be different from one company to another depending on the entry age and the attained age limit. Some insurance companies also provide household discounts to the policyholders. Therefore, it would be ideal to check with your insurer on the available Medigap discounts that they offer.