Understanding the difference between Supplemental Health Insurance Medicare and Medicare.
Before you begin to look at Supplemental Health Insurance Medicare plans, it is vital that you understand what Medicare Part A and Part B covers. With this knowledge, you can then make an informed decision on what to look for when shopping for your supplemental insurance plan. Most people call these plans Medigap Plans.
Medicare is a federally sponsored insurance plan. You are enrolled in it at age 65 or earlier if disabled. Medicare has 4 parts. Part A covers basic hospitalization, skilled nursing, hospice care and some home health care. Part B is your medical insurance coverage. Many doctors services and outpatient care are covered as well as some preventive care.
Medicare Part C is the Medicare Advantage Plan. This plan has benefits for Medicare Parts A and B as well as prescription drugs. Medicare Part D is the prescription drug plan. Many people by-pass Part C and go with Medicare Parts A, B and D.
The supplemental insurance plan, or Medigap, is a private health insurance plan that covers the “gaps” in the coverage provided by Medicare. There are multiple plans, from A to N. Items like co-pay, deductibles and co-insurance payments are covered. Medigap plans don’t cover long-term care, dental care, vision care or private nursing home care.
Remember that Supplemental Health Insurance Medicare plans are governed by state and federal laws. It makes no difference where you buy the plan, they’re the same. The only difference will be the price, so compare prices first.