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About Medicare Supplements

Medicare has gaps in its coverage. To help correct that, the federal government, the armed services and private industry make available supplementary health care insurance for Medicare, either as a continuation of the health insurance programs in force before reaching age 65, or through readily available Medigap (so-called because it covers the "gaps" in Medicare coverage) health insurance policies available from most insurance carriers.
If you are age 65 and have provided your own health care insurance, did not previously have health insurance, or your retirement does not include a company- or organization-sponsored health insurance plan, you should investigate purchasing a supplemental health care policy from a private insurance company.

  1. Supplemental Plans

    • Supplemental health care plans provide additional insurance to reduce the cost of health care for seniors by covering part of Medicare's coinsurance, co-payment and deductible charges (for example, Medicate pays 80 percent; you pay 20 percent). In addition, some policies cover the cost of services not included in the original Medicare (extended nursing home care, for example).

    Medigap

    • All supplemental plans provide the same basic benefits but to differing degrees and at varying costs.
      Medigap health care plans are the supplement, designed by the U.S. Department of Health and Human Services, for those who enroll in Medicare Parts A and B without previously established health insurance policies or policies that do not extend into Medicare.
      Insurance companies, who want to market Medigap policies, must sell one or more of twelve "standardized" plans (A through L). Each of the twelve plans offers slightly different benefits. The only difference between the policies offered by different insurance companies is their cost. You are responsible for paying the premiums.

    TRICARE for Life

    • TRICARE for Life is an extension of TRICARE, the policy assuring health services for active duty and retired members of the armed services. When a military retiree reaches age 65 and joins both Medicare Parts A and B, her TRICARE coverage becomes "TRICARE for Life," a supplementary policy.

    VA Health Care

    • The Veterans Administration (VA) bases veterans' eligibility for health care on household income. On June 15, 2009, the VA reopened its health care program to veterans with household incomes no more than 10 percent greater than current VA income thresholds.

    CHAMPVA

    • CHAMPVA (the Civilian Health and Medical Program of the Department of Veterans Affairs) provides health care services to the surviving spouses or children of totally disabled veterans. CHAMPVA is always the secondary payer to Medicare.

    Considerations

    • You also can choose an alternative rather than a supplementary approach to your Medicare coverage by enrolling in a "Medicare Advantage" health care plan. This coverage also can contains prescription drug coverage. Medicare Advantage Plans include Medicare Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Private Fee-for-Service Plans and Medicare Special Needs Plans.
      Medicare's educational materials provide an extensive listing of the gaps in Medicare Parts A and B. (See References and Resources for additional information on all Medicare supplements.)

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