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Supplemental Insurance

A Primer on Supplemental insurance


Supplemental insurance is basically extra or additional insurance coverage that an individual can buy in order to help with the often substantial payments for various services and out-of-pocket costs that a normal insurance policy will not cover. It is designed to fill in the gaps and pays out to help in covering such normal out-of-pocket costs like co-pays, coinsurance charges, deductibles and more.

How it Works

Supplemental insurance often comes in the form of Medigap or Medicare Supplemental coverage and is a kind of coverage that meets out-of-pocket costs that traditional insurance will not cover. It compensates one for such things as medical treatment provided while traveling out of the country for treatment purposes, coinsurance,deductibles, and co-payments.

Plans and Benefits Offered

Both the state and federal governments have mandated standardization for Medigap insurance provided by private companies. Benefits extended in a plan are similar in all states (with the exceptions of Wisconsin, Minnesota, and Massachusetts.)Alphabetical letters identify the plans, indicated by A, B, C D, F, G K, L, M, and N.
These plans offer a myriad of benefit types including out-of-country medical care, Part B co-payments and coinsurance. They also can offer skilled nursing facility assistance, provide blood, Part A hospice care co-payments, and more. Medigap insurance plans also provide financial assistance for hospital admissions, up to 365 days after the Original Medicare expires.

Eligibility Requirements

Those older than 65 years may receive Medigap insurance coverage. Most companies will also extend coverage to those who are disabled or who have advanced renal disease. Those seeking Medigap insurance must carry Medicare Part A and Part B in order to obtain this protection and will likely need be ready to drop any Medicare Advantage coverage before applying for Medigap. Note that this policy does not extend to spouses and so they would need to purchase separate coverage.

The Benefits of Good Supplemental Insurance

Supplemental insurance helps you by allocating extra financial help when needed to cover unexpected costs and provides the policyholder the reassuring knowledge that he or she is protected beyond a standard policy.