How to Select Supplemental Insurance

If you have Medicare or other health insurance, you know that your primary health plan sometimes does not cover all your medical bills. For those instances when you find yourself digging into your savings to pay your bills, you might consider purchasing supplemental insurance. Supplemental insurance covers some of the costs not covered by primary health plans and might save you money. Because so many factors affect which plan you should select, you need to follow a few guidelines.

Instructions

• 1

  Decide if you need Medicare supplemental or regular supplemental insurance. For people 65 and older who have Medicare, medicare supplemental insurance (known as Medigap) covers costs that extend beyond your Medicare plan. For people younger than 65 or people older than 65 who do not have Medicare, regular supplemental insurance will cover some of your costs.

• 2

  Compare the limitations and exclusions that often include hearing aids, in-home nursing assistants, and elective surgery benefits. Regarding Medicare supplemental insurance, review Part-A and Part-B coverages that outline length of hospital stays and mental health limitations. Regarding standard supplemental insurance, review limitations or added costs associated with high-risk disease limitations like lymphoma, HIV-AIDS or diabetes.

• 3

  Match the coverage amount to your monthly budget. Standard supplemental coverage costs $$20 to $100. Medicare Supplemental Insurance costs $1,100 to $3,300 annually and comes in one of 10 categories (categories A through J) with higher letter categories offering more coverage.

• 4

  Compare insurance companies by visiting sites like Star Reviews.com or Health Insurance Providers.com to obtain free customer reviews. Reviews provide a 5-star rating system, benefits of each program, online versus in-office rates and the ability to view side-by-side comparisons between providers.

• 5

  Compare your ability to upgrade your supplemental insurance plan by reviewing their open-enrollment periods. If you have supplemental insurance through an employer, the insurance company might limit upgrades or changes to your plan to once per year. Some insurance plans might allow changes but have a waiting period of waiting period of one month to one year.