What is a Medicare Supplement insurance policy?

A Medicare Supplement insurance policy, also known as Medigap, is a type of private health insurance that helps pay for certain out-of-pocket costs that Original Medicare (Medicare Part A and Part B) does not cover. These out-of-pocket costs can include deductibles, copayments, and coinsurance, as well as other healthcare costs such as emergency medical care received while traveling outside of the United States. Medicare Supplement insurance policies are sold by private insurance companies and are regulated by both state and federal law.

There are 10 standardized Medicare Supplement insurance plans (labeled Plan A through Plan N) available in most states. Each plan offers a different combination of benefits, so it's important to review the details of each plan before choosing one.

Medicare Supplement insurance policies are available to individuals who are enrolled in Medicare Part A and Part B and who are not enrolled in a Medicare Advantage plan. They are typically purchased to supplement original Medicare coverage and help pay for costs not covered by Medicare.

Per the 1994 Omnibus Budget Reconciliation Act, Medicare Supplement Insurance must not discriminate in pricing or be denied on the basis of health status, receipt of health care, or medical condition.

An Open Enrollment period is a 6-month period that guarantees the applicant the right to buy Medigap. The applicant must already have Medicare Part A and Medicare Part B. Medicare Supplement insurance policies do not cover long-term care, vision, dental, or hearing care, or prescription drugs. To get coverage for these services, beneficiaries may need to enroll in a separate plan, such as a Medicare Advantage plan or a Medicare Part D prescription drug plan.