Medicare Supplements offer range of benefits
to bridge Medicare coverage gaps

When it comes to health insurance, Medicare is definitely the 800-pound gorilla. The federally funded program covers more than 40 million Americans – those aged 65 and older, plus some younger folks who may be eligible due to certain health conditions, or because they're disabled.

There's plenty the program covers – services that include hospitalization through Medicare's Part A, and doctor visits and other outpatient expenses through Part B. But – as with most health plans – Medicare won't pick up the tab for everything.

That means that the millions who make the decision to enroll in "original" Medicare must also make decisions about Medicare Supplement Insurance – or "Medigap" – that fills the considerable gaps in Medicare's coverage. Consumers pay premiums for these plans through private insurance companies in addition to their Medicare Part B premium.

A collection of 12 different plans – identified by the letters A through L – give Medigap policy holders varying combinations of benefits. The plans cover expenses ranging from copayments, coinsurance and deductibles, to foreign travel emergency expenses, at-home recovery and preventive care.

The plans are standardized, meaning that each policy must offer the same basic benefits, regardless of which insurance company issues the policy to you. However, there are some variations in the way Medigap policies are standardized if you live in Massachusetts, Minnesota or Wisconsin.

Also, in some states, not all types of Medigap policies will be available. In other states, you may be able to purchase a Medigap policy called Medicare SELECT – a policy that requires plan holders to use specific hospitals and, in some cases, specific doctors.

You should also know that while Medigap fills many gaps, it doesn't fill them all. Policies don't cover long-term care, vision or dental care, hearing aids, eyeglasses and private duty nursing. If you want prescription drug coverage, you may want to join a Medicare Drug Plan (Medicare Part D), offered through private companies approved by Medicare.

Anyone enrolled in Medicare Part A and Part B can purchase a Medigap policy. The best time to purchase is during a six-month open enrollment period. The period beings on the first day of the month in which you are 65 years or older and enrolled in Medicare Part B. During this period, an insurance company can not refuse to sell you any Medigap policy sells, generally can't make you wait for coverage to start, and can't charge you more for a policy because of your health issues.

For more information about Medigap, read Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare.