Supplemental Insurance for Medicare Recipients

Supplemental Insurance policies – also called Medigap plans – were designed to help cover expenses that original Medicare does not cover.  There are 12 policies – A through L.  Plan A has the least benefits and the lowest premiums while Plan J offers the most benefits with the highest premiums.  You can compare these plans on various websites and/or Google Medigap Plans.

All 12 plans are not available in every state and they are called by different names in various states.  How can you tell when to purchase a Supplemental Plan and which plan is the best for you?

First of all, the best time to purchase a plan is within the first 6 months after you enroll in Medicare Part B.  During this period of time the insurers must accept you regardless of pre-existing conditions.  After the first six months, you could be denied coverage for pre-existing conditions such as high blood pressure, diabetes and other conditions that require ongoing care and medication.  You could also be denied coverage period – depending on what the company feels about your health and the company’s risk in covering your health issues.

Most of the Supplemental Plans are almost the same.  It is important to note that the premiums are not.  You should research the information that is available to you through the internet and other sources.  It is essential that you are aware that higher premiums will not get you more or better coverage – it will only make money for the insurance agent who sells it to you. In other words, Part E should cost the same no matter who you buy it from.  Part F might have different coverage and different benefits that Part E, but Part F should be the same price as any other Part F, no matter who you buy it from.  So, even though each Part has different coverage and different premium prices, as we mentioned before, the cost of any particular part is fixed and should be the same no matter who you buy it from.

Another important point is that every January, premiums are adjusted and are raised a little to keep up with Medicare’s premiums.  Also, premiums are calculated based on your actual age, the age you are when the policy is issued and the rates for your community. Everyone in your community will pay the same premiums regardless of age.  Other than the January Medicare premium adjustments, your premiums will remain stable.

These are some basic points regarding Supplemental Policies.  There is a great deal of information available to help you understand the finer points and determine which plans are best for your needs.  Take the time to research before you buy.  AARP and www.todaysseniors.com are both good places to start