Medicare supplement plans are a type of health insurance sold by private insurers to cover the gaps in Medicare. It is often referred to as “Medigap Plans.” These plans pay after Medicare approves and pays its share of your claim. Similar to your current insurance, medicare has deductibles, copays and coinsurance for which you are responsible. It does not include retail drug coverage. You’ll want to purchase a Part D drug plan for that.
Some things that are not covered by Medicare or your Medicare Supplement are:
- Routine dental, vision and hearing exams
- Hearing aids
- Eyeglasses or contacts
- Long-term care or custodial care
- Retail prescription drugs
Supplemental is optional. However, without any supplemental insurance, you would be responsible for expensive hospital deductibles and copays as well as 20% of the cost of ALL outpatients services. This includes things like surgeries and chemotherapy which would be financially devastating without some form of supplemental coverage.
The open enrollment period for a medicare supplement plan is 6 months after you become active in Medicare Part B. The insurance company will approve your application with no pre-existing condition during that time. It is a one-time window. You can apply to change your Medicare Supplement at any time, but if you are past your open enrollment window, you will have to answer health questions in most states. The medicare supplement insurance company will review your health history and medication history. They can accept or decline you.
There are 10 standard medicare supplement plans. Each plan has a letter, A – N and each plan letter provides a different set of benefits. Also, each lettered plan must have the same coverage regardless of which insurance company you choose.
- The choice of doctors and hospitals is yours.
- A referral is not needed to see a specialist.
- It can be used anywhere in the United States.
- Your policy can never be dropped or change due to a health condition.