Medicare Supplemental Policy

Medicare supplemental policies cover medical services that Original Medicare does not. Medicare Part A is hospital insurance and Medicare Part B is medical insurance. Together they comprise the Original Medicare benefits you're eligible to receive at age 65 or if you're disabled. Although Original Medicare covers a lot of services, some services require a fee or aren't covered at all. Supplemental policies are sometimes referred to as Medigap policies, because they're designed to fill in coverage gaps from Original Medicare. Supplemental policies cover either services or help with deductibles and co-payments, or both.

Types

• There are a lot of choices when it comes to supplemental policies. In fact, as of June 1, 2010, there are 14 supplemental policies classified as Medicare A through N. Each classification denotes a unique collection of basic benefits. Every policy of the same classification must cover the same benefits, regardless of which insurance company sells it to you. For example, all Medicare Part L supplemental policies must include identical benefits.

Benefits

• Supplemental policies cover such things like the co-payment for skilled nursing facility care, at-home recovery or the co-payment for preventive care, among others. It's important to review the benefits associated with each policy before making a decision about which one may be right for you. It's also worth noting that supplemental policies offer a lot of added benefits, but there are some services they don't cover, such as long-term care, dental care, vision services, eyeglasses, hearing aids and private nursing services.

Costs

• Although policies of the same classification must be alike, cost can vary from insurance company to insurance company, even those classified under the same letter. So, it's important to shop around after deciding the type of supplemental policy you want to purchase.

Requirements

• Each Medicare beneficiary must have his own supplemental policy. Your supplemental policy doesn't cover your spouse. In addition, before you're able to purchase a supplemental policy, you must first be enrolled in Original Medicare.

Private Insurance Companies

• Although supplemental plans are sold by private insurance companies and are standardized, they also must adhere to federal and state laws. These laws are intended to protect consumers and make it easier to shop for policies. Insurance companies, however, decide the supplemental plans they want to sell. Access to plans can vary based on where you live.