Senior Supplemental Health Insurance

by Alden Smith

When people retire, one of the biggest concerns should be medical coverage.  Though legal United States citizens qualify for Medicare when they reach the age of 65, coverage is basic.  The Medicare plan is very confusing, and many people make the wrong choice when choosing coverage.  You may be better off with supplemental insurance.  This article will discuss supplemental insurance and how it can help you.

What is Supplemental Health Insurance?

Supplemental health insurance is nothing more than a policy that covers what Medicare does not cover, and will protect you from high deductibles and co-payments.  It is not meant to eliminate Medicare, but to supplement it.

What Types of Supplemental Health Plans Are There?

There are three main types of supplemental health insurance. They are:

    1. Disease or condition-specific policies
    2. Accident policies
    3. Hospital indemnity policies

Let's look at these a little closer.

Disease Or Condition-Specific Policies

This supplemental insurance policy pays a pre-determined amount if you contract a certain disease.  Two choices are available: a policy that pays you per day, and a policy that covers medical procedures.

Accident Policies

This policy will pay if you are injured in an accident.  In case of death, they pay your family.  The amount you will be paid is dependent on the injury.  In cases of accidental death or dismemberment, the policy may specify that a certain percentage is paid to the insured, depending on the seriousness of the injury.

Hospital Indemnity Policy

This policy offers a cash benefit to the insured if he or she becomes ill and needs to be hospitalized.  Payment goes directly to the insured - or the beneficiary - on a daily, weekly or monthly basis.

 Should You Invest In supplemental Health Insurance?

 Investing in such a policy takes careful consideration.  If you are at high risk, such as a history of heart disease or cancer, then you might wish to buy supplemental insurance.  Many people need that extra peace of mind that this type of insurance will buy.  But the biggest question is can you afford it?


The Medigap Plan

The good thing about supplemental health insurance is that it can be tailored to your health needs. Twelve standard plans supplement the coverage that Medicare provides.  These plans are the same throughout the industry, with the exception being the cost.  The most popular plans are C and F.  The State Department of Insurance in your state can give you a list of the companies that sell supplemental insurance in your area.  Here is a list of what each plan DOES NOT cover:

Plan A:

• Hospital deductible
• Skilled nursing facility, daily coinsurance
• Part B annual deductible
• Part B excess charges benefits
• Emergency care outside of the US
• At home recovery benefit
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan B:

• Skilled nursing facility, daily coinsurance
• Part B annual deductible
• Part B excess charges benefits
• Emergency care outside of the US
• At home recovery benefit
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan C:

• Part B excess charges benefits
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan D:

• Part B excess charges benefits
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan E:

• Part B annual deductible
• Part B excess charges benefits
• At home recovery benefit
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan F:

• At home recovery benefit
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan G:

• Part B annual deductible
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan H:

• At home recovery benefit
• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan I:

• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan J:

• Hospice care
• Out patient prescription drugs
• Out of pocket maximum
  

Plan K:

• Part B annual deductible
• Part B excess charges benefits
• Emergency care outside of the US
•  At home recovery benefit
• Out patient prescription drugs
  

Plan L:

• Part B annual deductible
• Part B excess charges benefits
• Emergency care outside of the US
• At home recovery benefit
  

One of the biggest things seen here is hospice care, outpatient prescription drugs and at home recovery.  Because people live longer, these benefits are vital.  This alone gives cause for having supplemental health insurance.  Call your State Health Insurance Assistance Program or the National Medicare Hotline (1-800-MEDICARE) for free free advice.  Doing so can make retirement much easier for you.

Alden Smith is an award winning author and regular contributor to DoItYourself.com. He writes on a variety of subjects, and excels in research.