Medicare is a national health insurance plan in the U.S. for people over age 65, people with certain disabilities and people with kidney disease. The main components of Medicare are Hospital Insurance (Part A), Medical Insurance (Part B) and Prescription Drug Coverage (Part D). Services not covered by Medicare include long-term care, dental care, health care outside the U.S., routine eye care and hearing aids. To make up for some of the gap in coverage, many people with Medicare choose to purchase additional coverage.
Medigap
Medigap, also called Medicare Supplement Insurance, fills some of the gap in Medicare coverage and helps pay deductibles, co-payments and coinsurance. Anyone with Medicare Part A and B can shop for and purchase Medigap coverage.
Standard Policies
Medigap policies are standardized into 12 different policies (A through L). Every policy must be in accord with federal and state laws (see Resources).
Insurance Companies
Private insurance companies sell Medigap insurance. Once licensed, insurance companies are required by law to be specific on the policies they can sell and how the policies are advertised. The only choice the insurance company may have is which Medigap plans they want to offer.
Spouse Coverage
Medigap coverage does not include spousal coverage. You and your spouse will both have to purchase Medigap coverage.
Open Enrollment Period
Most of the time, the insurance company offering Medigap coverage must insure you, even if you have a health condition---but they can charge a premium. During your open enrollment period, the first six months beginning on your 65th birthday, the insurance company is forbidden from making a distinction between those in good and poor health.
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