Supplements are, by definition, something you have or get to improve something you already have, like supplementing your cable TV package or your health care insurance. Funny, you'd think that health care, the original Medicare, was complete as it was designed. It may have been in its inception; however, as time went by it became apparent that large gaps had developed between what Medicare covered and what many private health insurance policies covered. The solution: Medicare supplement insurance policies sold by private health insurance companies.
The Medicare supplement policies (Medigap) fill the gaps left by the by original Medicare and basically help reduce those out of pocket medical expenses you'd otherwise pay for yourself, depending on your choice of plan (Medigap policies come in parts A-J). Under this arrangement, Medicare and Medigap work in concert to pay health care costs.
Medigap policies in every state are federally mandated and have certain specific benefits. This ensures that Medicare doesn't change, no matter where you are living. However, standardized doesn't mean there isn't a lot of choice available to suit the various circumstances of Medicare recipients. There are actually 10 different parts lettered from A to J, with A being the one that must be offered in all states, to F the most popular part.
Each Medigap part has a different set of basic and extra benefits. Part A is a mandated offering and parts B through J MAY be offered if the insurance carrier wishes to offer them. Two things you should be aware of: Plan A is only made available to people without medical coverage due to disability; Medicare combined with Plan A is the lowest level of coverage.
This should not stop you from shopping around for different rates. Here's the good news: you can actually save money on Medicare/Medigap combo deals because this is the only area (Medigap) where insurance companies set their own rates as to what the market will bear. What they offer is standard, but what you pay for the choices is variable. So calling around can save you money.
One further note: If you are considering a Medigap policy, you will need to have both Medicare Parts A and B already in place. There are other considerations to take into account, but speak to a local insurance broker who can walk you through the details. Their advice is free and can save you some time researching online.
Richard Cantu is with Texas Health and Life, a Texas health insurance and Texas life insurance agency in Texas. To learn more, visit http://www.texashealthandlife.com
