Medicare Supplemental Plan: Coverage Basics

So, what doesn't Medicare supplemental insurance cover? What are the basic facts you need to know about purchasing one of these policies?

Here are a few facts to keep in mind:

Medicare supplemental plans won't cover long-term care - such as that required in a nursing home - and it won't cover dental care, hearing aids, or eyeglasses.

A supplemental insurance policy will only cover one person - if you have a spouse who also needs a policy he/she will need to purchase it separately.

While almost all insurance companies can sell you at least some form of supplemental insurance, not every insurance agency offers all types of supplemental insurance. This is why it's a good idea to shop around. You might find a plan you like better somewhere else.

The rates and number of plans available to you will depend upon your age and where you live. It's best to sign up for supplemental insurance during the enrollment period. This is a period of about 6 months during which time you must have turned 65, and have enrolled in Medicare Part B. During open enrollment insurance companies can't charge you more based on any pre-existing health conditions.

But if you've missed this window there's still a chance you can enroll under good circumstances. Some states have additional open enrollment periods. Ask a licensed insurance broker about your options if you've missed the preliminary window for enrolling in Medicare supplemental insurance.

Any Medicare supplemental policy is guaranteed renewable every year, regardless of your health conditions. So long as you pay your monthly premiums, you can keep your policy year after year. This means that once you have a supplemental insurance plan, and you're paying on it every month, you can keep it as for long as you'd like.

Medicare supplemental plans don't include extra coverage for prescriptions - if you need extra coverage for your medications you'll need to enroll in Medicare Part D, which is designed to help you pay for prescription drugs that aren't completely covered by Medicare.

Massachusetts, Minnesota, and Wisconsin all standardize their supplemental insurance programs in a different way. If you live in any of these states you'll need to speak to an insurance broker about how their policies can provide for you in the event of an illness or injury.

If you have Medicare Advantage, group insurance, union health insurance, or employer health insurance, Medicaid or VA (Veterans Administration) Benefits, or TRICARE, you probably don't need Medicare supplemental insurance. In fact insurance companies aren't allowed to sell you supplemental insurance if you have any of these policies alongside Medicare.