What is a Medicare Supplement?

The question "what is a Medicare supplement?" commonly gets asked by people who are closing in on Medicare eligibility. This question is not that important to someone who is 40 years old and has another 25 years till they qualify for Medicare. However, those turning 65 or individuals looking for retiree benefits tend to wonder - what is a Medicare Supplement? In today's article we will cover the basics of a Medicare Supplement along with the other names that are used for this supplemental coverage.

What is a Medicare Supplement?

A Medicare Supplement is supplemental coverage that fills in holes of Original Medicare. This coverage is often called a "Medigap Policy" because of the gaps that it covers, leaving seniors with less out of pocket expenses if any.

Medicare Supplement policies are sold by insurance companies not Medicare. Some states like New York have less Medigap plans available due to some of the restrictions and requirements they put on insurance companies, but your average state will have approximately 15 Medicare Supplement Companies that offer coverage.

Medicare Supplement benefits are standardized, so each insurance company must offer the same basic benefits. In other words Mutual of Omaha and AARP both have the same Plan F benefits. It is similar to a 20 year term life insurance policy - every company will cover you on the 19th year and not a single company will cover you on the 21st year unless you extend the policy and pay the hefty premiums.

Medicare Supplement - Benefit Layout

As you can see in the coverage guide above Medicare Supplements are labled by letters (Plans A - N). Plan F provides the most comprehensive coverage in the market and is commonly refferred to as the best Medicare supplement.

Supplemental coverage to Medicare is very important and can be very costly to you if you decide not to purchase a policy. Medicare alone does not have an out of pocket max which means that you have no ceiling on healthcare expenses without a gap policy.

To learn more about Medicare Supplements or for Medicare Supplement Rates go to www.medicareinsurancefinders.com. Also you can call 877-759-5760 for more help.

Thank you for reading our article: What is a Medicare Supplement?