How To Apply for Medicare Supplemental Health Insurance

Many Medicare recipients are surprised to discover that Medicare does not pay for all medical expenses even if they have enrolled in both Medicare Part A and Medicare Part B of the Original Medicare Plan. If you have Medicare, you may have already discovered the "gaps" in the Medicare Plan coverage. The gaps are services and treatments not covered as well as coinsurance amounts and deductibles.

To get insurance to cover the gaps in Medicare plan coverage, you will need to find what is known as a Medigap policy or Medicare supplemental health insurance. These policies are available through private insurance companies and work only with the Original Medicare Plan. 

The Centers for Medicare and Medicaid Services (CMS) have standardized the coverage that may be offered as Medigap insurance into a number of basic plans.  (Basic plans and details are updated annually--always check with Medicare for the latest information.)  Insurance companies may offer some, or all, of these basic plans.

Use the following checklist to apply for Medicare supplemental health insurance:

1. Compare available Medigap policies. A number of different policies may be available in your area. It is important to compare medical supplements because coverage varies and also because you will be responsible for paying the insurance premium. Premium charges vary because each insurance company sets its own premiums.
2. Verify Medigap coverage.  As you compare insurance policies, make certain that the coverage you are comparing is indeed a Medicare Supplemental Health Insurance policy. By law, the front of a Medigap policy should identify it as Medicare Supplement Insurance. Currently there are 12 standard Medigap plans, A through L, which may be offered by insurance companies.
3. Enroll your spouse separately. It is important to note that your spouse will need to select his or her own Medigap policy. This is because a Medigap policy covers only the health costs of the insured and not those of his or her spouse.
4. Use your open enrollment period. It is best to buy a Medigap insurance policy during your Medigap open enrollment period. This is the period that begins (after you reach age 65) on the first day of the month in which you were born and lasts for six months. During your open enrollment period, you can't be denied any Medigap coverage that an insurance company sells, be made to wait for coverage to start, or be charged more for a supplemental Medicare policy because of poor health. (Refer to your Medicare office for exceptions to this rule.)
5. Buy your Medigap policy. Once you have selected the plan that you want, apply for it directly through your insurance company. Be sure to ask any questions you may have before you make your purchase.

Once you have selected your Medicare supplemental health insurance, the insurance company cannot change what the policy covers or cancel your policy as long as you keep paying the premium. The insurance company may, however, increase the amount of the premium.

Without preparation and knowledge, the process of selecting and enrolling in Medicare supplemental health insurance can seem like a daunting task. However, with a little preparation, you can select this coverage that may make a big difference in your medical care and costs.