Does Supplemental Insurance Pay for Medicare Part B?

Medicare is a federal government-sponsored health care program specifically designed to provide affordable health care coverage for people age 65 and over. While Medicare covers a substantial portion of a senior's medical costs, it is not all-inclusive. Products are available that can help seniors pay for what Medicare Part A and Part B do not.

Identification

• While Medicare Part A covers hospitalization, Medicare Part B covers other medically necessary expenses like doctor visits, home health services, outpatient care and preventive services such as screenings for cancer, heart disease and diabetes. Unlike Part A, which is available at no cost, Part B requires enrollees to pay a monthly premium. You must be covered under Part A to be eligible for Part B, and most people choose to enroll in both simultaneously as soon as they are eligible. Part B enrollment is not mandatory.

Coverage Gaps

• Although Medicare Part B covers a variety of medical services, enrollees must pay for some expenses out of their own pockets such as deductibles, co-insurance and co-pays. When combined with the Part A deductibles, co-insurance and co-pays, the out-of-pocket expenses can tax a senior citizen's budget, especially if he requires frequent medical care or an extended hospital stay. Many seniors elect to purchase supplemental coverage to help keep out-of-pocket expenses to a minimum.

Medicare Supplement Policies

• Medicare supplement policies, also known as Medigap coverage, provide additional coverage to fill the gaps in Medicare Part A and Part B. While Part B enrollees still must pay the Part B premium, the Medigap policy can cover some or all of the remaining out-of-pocket expenses, depending on which plan is selected. As of 2011, 14 Medigap plans are available, ranging from A to N, although some plans are not available in all states. Depending on the plan chosen, the coverage can range from relatively narrow to more extensive in scope.

Availability

• Medigap policies are sold by private insurers. However, federal and state law mandates what coverages must be offered. Although the coverages offered under each plan cannot vary from one insurer to another, premiums may vary greatly, so it pays to shop around. The best time to enroll in a Medigap program is during the open enrollment period when turning 65, as coverage must be made available regardless of the enrollee's medical history. In subsequent years, new enrollees may need to undergo a medical examination to obtain coverage.