Medicare supplement plans
When you reach the age of 65, you can go on Medicare, which is the government health insurance program for seniors. In fact, some companies may even make you go on Medicare once you hit 65, even if they offer insurance to retirees. Contrary to popular belief, Medicare is not free, and it doesn't always cover everything. That's why it can make a lot of sense to have a Medicare supplement plan.
Medicare supplement plans literally help to supplement your Medicare coverage, which is why they can be so important. Just as with private health insurance, you have deductibles, copays and other costs, as well as exclusions, and it can be very tough for seniors on a fixed income to cover these costs when they arrive. A Medicare supplement plan can help to make your costs more predictable, by trading a monthly premium for some surety about what your total out of pocket costs are going to be.
Medicare supplement plans also are referred to as "Medigap" plans because they fill in gaps where Medicare doesn't pay. Unlike Medicare, they are offered by private insurers rather than the government. You are not required to sign up for a Medicare supplement plan along with Medicare, but it can make a lot of sense to help you control costs.
Medigap policies often target a specific area of coverage. For example, a policy might pay uncovered hospital charges or drug copays or even health care you have to get when traveling in another country, which usually isn't covered by Medicare. Because they are supplemental, the policies only kick in after Medicare. For example, your Medicare policy will pay what it normally pays for a covered service, and then the Medicare supplement policy would kick in and cover costs that Medicare didn't take care of. For more details about the benefits of medicare supplement you may explore aarp medicare supplement plan n.