Medicare Supplement Insurance Facts

For senior adults, Medicare is a vital-government supported insurance plan that helps to cover the expenses procured from medical and prescription bills. However, Medicare does not cover everything, and in 2006, supplemental coverage plans were introduced. This extra coverage is called Medigap, since it covers the gap between the cost of healthcare and the amount that Medicare will pay. There are many different options for Supplemental Insurance Coverage plans available through private organizations, and the different plans can be quite confusing. But, with a little studying, the various plans can be easy to understand. In order to be eligible for Medigap coverage, one must be enrolled in Medicare part A or part B.


There are twelve different Supplemental Insurance plans based on a standardized system. Each of these standard plans is the same, no matter from what private company from which it is purchased. So, it is more important to understand the twelve types of coverage as opposed to understanding different companies that offer the coverage. This also means that, no matter how much you pay for a plan, you are getting the exact same coverage with the same standards and claim filing processes, so it is important to not let anyone talk you into paying a higher premium. The extra money will not add anything to your coverage.

The actual premium cost of a Supplemental Insurance Plan is decided in one of three ways. Attained Age: The premium is set based upon the person’s age and will increase as the person gets older. Issue Age: The premium is set by the person’s age at the time of coverage start. It will not rise with age, but will rise with inflation. Community Related: This premium is set based on the age demographic and premiums of other people in the area. Although the latter two of these choices will cost more in the beginning, they will end up being the most money saving in the end.

Whichever Medicare Supplemental Insurance plans you choose, make sure that you discuss thoroughly all the positives and negatives of the plan with your salesman before signing any paperwork. The plans can be confusing, and with a dozen to choose from, there can be a lot to go over. But, since this is your health you are talking about, make sure to understand the plans completely and choose the best one for your needs.