Understanding Medicare Supplement Insurance (Medigap)
Not many people are familiar with Medicare Supplement insurance, although they should be.
A Medicare Supplement policy is health insurance sold by private insurance companies to fill the “gaps” in Original Medicare Plan coverage. It is highly regulated by both federal and state governments, and for this reason it is dependable and affordable for seniors.
Medicare Supplement policies help pay some of the health care costs that the Original Medicare Plan doesn’t cover. If you are in the Original Medicare Plan and have a Supplement policy, then Medicare and your Supplement company will pay both their shares of covered health care costs.
Insurance companies can only sell you a standardized Medicare Supplement policy (as of June 1, 2010 referred to as "Modernized Plans"). These policies must all have specific benefits so that you can compare them easily. Click here to see plan benefits.
You may be able to choose up to 10 different standardized policies (Plans A,B,C,D,F,G,K,L,M,N as of June 1, 2010--E, H, and I are eliminated, and M and N are new). These policies must follow Federal and State laws. These laws protect you. A Medicare Supplement policy must be clearly identified on the cover as “Medicare Supplement Insurance Coverage.” Each plan, A through N, has a different set of benefits.
It’s important to compare policies because costs vary greatly from company to company and plan to plan. The benefits in any Medicare Supplement Plan A through N are the same for any insurance company. However, each insurance company decides which plans it wants to offer.
When you buy a Medicare Supplement policy you must have Medicare Part A and Part B. You will have to pay the monthly Medicare Part B premium to the government. In addition, you will have to pay a premium to the Medicare Supplement insurance company.
You and your spouse must each buy separate policies. Your policy won't cover any health care costs for your spouse.
For more information on these plans, coverages, and rate comparisons, see the The Nebraska Senior Health Insurance Information Program (SHIIP) on the Nebraska Department of Insurance website. To view the Nebraska coverage and rate comparison guide see Nebraska's Comparison Guide for Medicare Supplement Insurance.