About Supplemental Insurance

Most individuals who are eligible for Medicare coverage are automatically covered under Part A, federally funded hospital benefits.  Many of these individuals purchase Part B, which covers physicians’ costs.  Part B costs the individual $45.50 per month.

What happens with the expenses that aren’t covered by Part A and Part B?  Many Medicare recipients purchase private supplemental insurance policies to provide benefits not covered.  These benefits cover long-term hospital stays, deductibles, preventative care and pharmaceutical expenses.  These supplemental plans charge various rates depending upon what services they cover.  The plans can cost anywhere from about $50 to $500 per month.

If an individual has a very low income, it is possible that they are eligible for Medicaid coverage which will pay for things that Medicare does not, such as prescription drugs.  In these cases, this is considered “dual eligibility” because the person is eligible for both Medicare and Medicaid.  In this situation, Medicaid would pay for the Medicare Part B premiums, certain co-pays, and deductibles.  If the person’s income is not low enough for Medicaid coverage, there can be other state programs that will pay for prescription drugs.

Though these programs do not always cover all expenses, even when they are combined for “dual coverage” they do cover a lot and can help individuals in need of medical services.  Most states have their own individual types of plans to supplement Medicare, and many states are looking into sliding scale premiums for those who have income restrictions but still need the supplemental coverage.