What is Medicare Supplement Insurance?

Even if you live a healthy lifestyle, it is important for every person in America to have health insurance. Illnesses and injuries can happen out of nowhere, and health insurance helps to make sure your medical expenses are covered, at least in part. Out of pocket expenses for doctor’s offices and hospitals can be pretty outrageous, but with the right insurance, you can pay an affordable copay, only a percentage of surgery costs, and even pay much less when you go to purchase medications when you are ill.

A Medicare Supplement Insurance is a policy sold by private companies that helps pay for certain care that the original Medicare policy does not. It is otherwise known as a Medigap insurance, and can help cover the costs of things such as co-payments, coinsurance, and deductibles. Each policy offers different pros and cons. Some policies might offer services like medical care for when you are traveling outside of the U.S. and get injured or fall ill.

Here are three things to think about when looking at a Medicare supplement policy.

1. It is not a replacement

In order to eve qualify for Medigap policies, you need to have Medicare Parts A and B. It is required that you still pay these monthly premiums aside from what you’ll be paying your private insurance company if you decide to purchase a Medigap policy. Medigap also only covers one individual, not a family. If you are married, your spouse would need to purchase a separate medicare supplement policy.

2. It does not cover prescription drugs

In fact, it doesn’t cover a few things, but you’ll have to outweigh the benefits as well. For instance, a Medicare supplement policy does not cover prescription drugs, long-term care, vision and dental care, or hearing aids. To cover all of this, you might need to pay premiums for Original Medicare, Medigap, and Medicare Part D, which does cover prescription drugs. It might sound like a lot, but in order to be fulyl covered and face no gaps, it is probably best to invest in each of these.

3. It covers Medicare-participating doctors

The good news is that Medigap will cover costs that are associated with Medicare-participating doctors, so if you have a doctor you already regularly see and trust, then you can continue to see them and won’t have to switch.

Are you thinking of purchasing a Medigap plan? Let us know in the comments below!