As a person aged 65 an older you’re covered by Medicare, a federally funded health care program. Medicare consists of parts A, B, C and D. Part A pays for such things as hospital inpatient, nursing facility and hospice care. Part B pays for doctor and hospital outpatient visits and other care Part A doesn’t cover. Part B usually has a monthly premium paid by the beneficiary.
Although Medicare pays for many of your health care benefits it only covers approximately 80 percent of all medical costs. Medicare Supplemental Insurance plays a major role in covering the portions of your health care costs that Medicare doesn’t cover.
Medicare Supplemental Insurance is also known as Medigap insurance because it fills the gaps that Medicare doesn’t cover. These policies are attainable without medical exams and are guaranteed renewable.
Medicare Supplemental Insurance policies cover such things as co-pays, deductibles, hospital stays and home health care. These costs add up and can become a financial burden. There are 10 standardized plans that are available nation wide which are labeled A-N. Each of these plans offer different benefits at various premium rates.
All insurance companies must offer the same benefits packages so the only variable is price. You’ll want to shop for the benefit package that meets your needs at the best price. It should also be noted that in order to purchase any Medicare Supplemental Insurance plan you must be covered by Medicare Part A and Part B.
Medicare Supplemental Insurance Plan A is a basic policy, coverage includes:
100 percent of Medicare Part A or Part B insurance co-payment
365 days of hospital care after Medicare coverage is exhausted
100 percent of Medicare Part B preventive care co-insurance
Examine your specific needs and financial situation to determine the best Medical Supplemental Insurance plan for you. An official government guide on supplemental plans is available at http://www.medicare.gov/publications/pubs/pdf/02110.pdf