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Medicare Supplements
Medicare Supplements have been in existence since shortly after the introduction of Medicare in the 1960s. Medicare Supplements fill the gaps of Original Medicare, which normally equal approximately 20% of the Medicare usual and customary charges. Medicare Supplements, also referred to as Medigap plans, always function secondary to Medicare; meaning Medicare will pay its portion of the healthcare claim first, and the Medicare Supplement will pay second.
Here are a few useful facts about Medicare Supplements:
- Insurance companies marketing Medicare Supplements must use standardized benefit packages (see the chart below for package descriptions).
- Medicare Supplements being marketed today do not include Part D Prescription Drug coverage.
- Medicare Supplements usually do not include benefits beyond what Medicare covers; such as preventive dental, eyewear and hearing exams.
- Premiums for Medicare Supplements can vary greatly by company and plan. Do keep in mind that Medicare Supplement plans are standardized, so one company’s Plan “F” provides the exact same benefits as another company’s Plan “F”. However, the monthly premium of each plan can vary substantially.
- Medicare Supplements may require the prospective policyholder to answer a series of health-related questions in order to qualify for coverage. This is called medical underwriting. Your MedicareCompareUSA Insurance Specialist can help you understand these requirements or answer any questions you may have.
- Medicare Supplements generally do not require the use of “preferred” or contracted healthcare providers. Most Medicare Supplement plans will allow the policyholder to receive care from any Medicare certified healthcare provider who accepts Original Medicare. The exception to this rule are Medicare Select Supplement plans, which may require the use of a contracted network of providers.
