The increasing costs in healthcare coverage could make the selection of a health insurance plan one of the most important decisions in an individual's life. Medicare is federal health insurance for anyone age 65 and older, and some people under 65 with certain disabilities or conditions.
Qualifying for Medicare Supplement Coverage
If you have enrolled in Original Medicare Part A and Part B you can purchase Medicare Supplement insurance, also known as Medigap coverage. Medicare Supplement coverage is extra insurance sold by private insurance companies, has a separate monthly plan premium, policies are standardized and only cover one Medicare beneficiary on a specific plan. However, it is important to note that Medicare Supplement Insurance coverage does not cover prescriptions drugs.
You can only buy a Medicare Supplement plan if you have Original Medicare, and you get a 6 month "Medigap Open Enrollment" period that starts the first month you have Medicare Part B and you're 65 or older. After that time you may not be able to get a Medicare Supplement plan or it may cost you more.
Copayments, Coinsurance, and Deductibles
While Original Medicare pays for a large portion of medical services, it still has many out-of-pocket costs associated with it, including copayments, coinsurance, and deductibles. If an individual has to make several doctor visits within a year or undergo frequent medical procedures, these costs can add up fast. Medicare supplement coverage helps to offset these out-of-pocket medical expenses that Medicare doesn't cover.
Do Most Individuals Need Medicare Supplement Coverage?
For many individuals, Medicare Supplement Insurance may be something they weren’t aware of or thought was an option. Medicare Supplement Insurance (Medigap) is extra insurance you can buy from a private health insurance company to help pay your share of out-of-pocket costs in Original Medicare.