Requirements to Get Medicare Supplemental Insurance

The original parts of Medicare, created in 1965, are A and B, which offer benefits for hospital care, hospice, home health and preventive services. Part A Medicare is often free of premiums, but both parts come with out-of-pocket costs for deductibles, copayments and coinsurance amounts. Medicare supplemental policies, often called Medigap, help beneficiaries pay for these extra costs. Certain policies have extra benefits, such as coverage for foreign travel emergencies.

Original Medicare

• To use a Medigap policy, you must first have Medicare. You generally need both Original Medicare Parts A and B before you can use a Medicare supplement.

Premiums

• In addition to the premiums you pay for original Medicare, you also have to pay monthly premiums for your Medigap policy. These premiums vary depending on which insurance company you purchase your policy from and your age. Certain Medigap insurance companies charge you according to your age when you buy the policy, while others allow everyone who buys the same plan to pay the same rate, regardless of age. However, Medigap policy premiums often go up as you age.

Age

• Medicare is designed mainly for senior citizens age 65 or older. You can also enroll in Medicare, however, if you're younger than 65 and have certain health conditions, although Medigap companies typically don't allow anyone under the age of 65 to enroll. You may be able to find a company that sells Medicare supplements to those under 65, but, generally, not all plans are available. As of 2011, California, Wisconsin, Louisiana, Texas, Missouri, South Dakota, New York and North Carolina are among the states that require Medigap insurance companies to offer at least one kind of policy to people who are under 65.

Service Area

• Medigap plans are standardized, which means they offer the same benefits no matter where you buy them from. Not all plans are sold in all areas, though. Although states usually require that any company that sells Medigap sell at least Plan A, you may not be able to find any other supplement you want in your county or city.

Medicare Advantage

• Part C Medicare is called Medicare Advantage, or MA. MA plans combine the benefits of Parts A and B and allow users to purchase them through private companies rather than through the federal government. However, if you have an MA plan, your Medigap policy doesn't work. Medigap doesn't pay any copays, cost-sharing or deductibles for Part A and B benefits you receive through Medicare Advantage.