What Is Medicare Supplemental Insurance?

For those who are enrolled in the Medicare program the coverage may
simply not be enough. That is why there are Medicare Supplemental
Insurance or Medigap programs in place. If you are unsure of whether
or not you need Medigap insurance for your Medicare program please
read what is contained below.What is MedicareMedicare is an
entitlement program created by the federal government as its principal
health care plan for seniors. To qualify for Medicare all you need to
do is reach the age of 65, become permanently disabled or have end
stage renal disease. Medicare was originally created to help our
elderly with the burden of paying for health care. Medicare is not
free however; recipients pay a monthly premium as well as portion of
the cost of services they receive as a co-payment or deductible
amount.Medicare also does not cover certain needed services such as
nursing homes and in-home health care. To pay for services that are
not covered by Medicare most recipients turn to private insurance
policies that are called Medigap. What are the gaps in
coverage?Medicare Part AThere are actually quite a few gaps in
Medicare coverage you should be aware of depending upon which Medicare
program you are enrolled in. Medicare Part A coverage is known as
hospital coverage because it takes care of such things as inpatient
hospital and skilled nursing, home health and hospice.What Medicare
currently does not cover however is:The hospital deductible: This is
the amount you must pay for your hospital stay before Medicare will
cover the rest. The amount as of last year was over $1000.00The
hospital coinsurance coverage: Medicare covers your hospital stay in
full, besides the deductible, for the first 60 days of your stay.
However after the 60 days are up if you still need to be in hospital
Medicare will no longer cover all of the charges but will charge you a
daily coinsurance payment.Hospital services: Once you have been in
hospital for 150 Medicare will no longer bear any of the costSkilled
Nursing facility: Medicare covers a skilled nursing facility stay for
up to 20 days, if you need skilled care beyond that you will need to
pay a daily coinsurance amountSkilled nursing facility services: If
you need to be in a nursing home for more than 100 days, Medicare will
not cover any of the expenses.Home health aide services: While
Medicare will defray some of the cost of occasional home health aide
services it does not cover extended services.Home health aide or
nursing services: Medicare will not cover home health aide or home
health nursing unless skilled care is necessary.Medicare Part
BAlthough Medicare Part B was created to be Medicare's premier
supplemental insurance it ended up becoming more of an outpatient and
preventative medicine type of coverage. The types of coverage Part B
covers is durable medical equipment, supplies the physician uses,
prosthetic devices, and ambulance services. Just like with Part A
there are gaps in the coverage here as well, although not as
many.Deductible: Medicare Part B has a flat yearly deductible that
must be met before any services are covered under Medicare. While
minimal in cost the amount last year was $135 and goes up each January
1.Part B coinsurance coverage: While Medicare Part A covers 80% of the
items that Part B takes care of neither covers all and there is a 20%
coinsurance payment you must cover.Any person who is eligible and
enrolled in the Medicare program needs a Medigap or Medicare
supplemental insurance to help defray the costs missed by Medicare
Part A and Part B.