A Medicare Supplement Insurance policy helps pay some, or “supplement,” of the health care costs that original Medicare doesn’t cover. It is also sometimes referred to as a Medigap Policy. They are sold by private companies.
Since Medicare doesn’t pay any of the costs for you to get a Medigap policy, you have to pay the premiums for a Medigap policy.
Each insurance company will decide how it will set the premiums, or price, for its Medigap policies. It’s important to ask how an insurance company prices its policies. The way they set the price affects how much you pay now and in the future.
Medical Supplement plans help pay for some of the costs that your original Medicare won’t, like copayments, coinsurance and deductibles. Some policies will also help cover medical expenses when you travel outside of the U.S., unlike original Medicare.
If you have traditional Medicare, and you purchase a Medical Supplement policy, here is what will happen when you need it. Medicare pays its share of the health care costs, up to the Medicare-approved amount. Then, your Medcial Supplement policy will pay its share.
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