What does Medicare supplemental insurance cover?
With so many insurance types on the market, it can be challenging to determine which ones are valuable and which ones are worth skipping. This is especially important for seniors and older adults to get right, as there may not be much flexibility in their budget. And in addition to some traditional insurance policies like home, health and auto, there's likely to be little left over to pay for additional protections. In these instances, it's crucial to understand what other insurance types offer — and what protections they afford.
Medicare supplemental insurance is one such type. This unique insurance can help fill the gap left by private health insurance plans and Medicare parts A and B. But what, exactly, does Medicare supplemental insurance cover for policyholders? By knowing this clearly, seniors can better determine if this insurance type is right for them.
You can easily compare multiple Medicare supplemental plans here to find one that works for you.
What does Medicare supplemental insurance cover?
Medicare supplemental insurance plans don't work like traditional health insurance policies. As such, they won't explicitly cover the same items those plans do. Instead, Medicare supplemental insurance does exactly what its name implies: it supplements your other insurance protections. Specifically, Medicare supplemental insurance can cover:
- Medicare deductibles (both parts A and B)
- Co-insurances
- Co-pays
- Hospital costs
But Medicare supplemental insurance, also known as Medigap, will only kick in after Medicare has made a contribution to the bills for the above items. So plan your insurance protections accordingly.
"Medigap plans are insurance that help to cover the 'gaps' in Original Medicare," CoverRight, a health insurance platform that works on Medicare plans, explains online. "In other words, Medigap plans help to pay for the out of pocket costs such as deductibles, copays and coinsurance that you are responsible for under Original Medicare. Medigap can only be used with an Original Medicare plan and does not cover prescription drug cost (Part D) or any extra benefits."
But if you continuously find yourself stuck with partial bills left over after Medicare has already been applied, then a supplemental plan could be worth pursuing. Get started by reviewing your Medicare supplemental insurance options here now.
Is Medicare supplemental insurance worth it?
Knowing what Medicare supplemental insurance covers is critical, but is worth it for you? Here are three signs it may be:
- Medicare may not be enough: Everyone's personal financial circumstances are different. In some cases, Medicare may be sufficient. But if you continually open your mailbox to discover leftover bills after Medicare was applied, a supplemental policy may be valuable for you.
- Your budget is limited: If you have plentiful savings and reliable income still coming in, then you may be able to rely on that to pay the remaining Medicare balances. But if you don't and your budget is limited (especially now during inflation), a supplemental plan could be smart to pursue.
- Peace of mind: Your retirement years should be best experienced with as little stress as possible. While that's not always possible, you can do your due diligence to avoid unexpected and expensive bills. A Medicare supplemental plan can help.
The bottom line
Medicare supplemental insurance can supplement your other insurance protections, paying for the balance left from deductibles, co-pays and more. But you will need a Medicare plan first before getting started with a supplemental as a backup. But don't just consider it as a supplement, as this unique form of insurance can help boost your budget and provide some extra peace of mind so you can focus less on your finances and more on the things that are important to you.
