To begin with, it is important for you to know that you must have Medicare Part A and Medicare Part B to get Medicare supplement insurance.  This is because these are generally the parts of Medicare that are supported by the Medicare supplement insurance so you can’t supplement without having a primary policy.

You will be paying the Medicare Part B premium to the government and an additional premium to the private insurance company selling Medicare supplement insurance.  Don’t feel like you are being scammed when being billed twice, these are two separate coverage premiums.

There are a group of insurance companies in your state that are licensed to sell Medicare supplement insurance to you and these are the only you can buy from.  Don’t buy Medicare supplement insurance from a non-licensed company or you will suffer the consequences of paying for invalid coverage.

Understand that when you are researching Medicare supplement insurance you need to compare the same policies with different companies to the premiums.  Some states will have different requirements for what you need to have to get certain Medicare supplement insurance, regardless, you need to make sure that you have the coverage that you need.

The following important change to Medicare supplement insurance will happen later this year: Starting June 1, 2010, the types of Medigap Plans that you can buy will change:

1. There will be two new Medigap Plans offered—Plans M and N. 
2. Plans E, H, I, and J will no longer be available to buy.  If you already have or you buy Plan E, H, I, or J before June 1, 2010, you can keep that plan. Contact your plan for more information.

What are some things you should know about Medicare supplement insurance?

• Medicare supplement insurance (or Medigap) is generally only available to people who already carry Medicare Part A and Medicare Part B coverage.  This is very important to remember if you are trying to cover your backside but don’t carry Medicare Part A or B.
• Your Medicare supplement insurance will require a different monthly premium that is paid separately from your Medicare coverage.  This payment will go directly to the private insurer while your other will still go to Medicare.
• Your Medicare supplement insurance will only carry one person, not one person and a spouse.  If you need Medicare supplement insurance for you and your wife you will have to get separate policies and pay separate premiums.
• The costs in many states can vary on Medicare supplement insurance, therefore making it all the more important to shop around.  Medicare insurance is not cheap in the first place so make sure you aren’t paying top dollar for your Medicare supplement insurance.

Medicare supplement insurance is a great option for those that are stuck and unable to meet the deductibles and premiums necessary to get the coverage they need.  Instead of paying the 20% of medical costs that individuals are required to pay after all of these deductibles and premiums are paid, individuals will pay another smaller monthly premium.

One of the more popular Medicare supplemental insurance plans is Medicare Plan F that will help to eliminate the cost of high yearly deductibles.  The monthly premium for this plan ranges from $80 to $200 based on the individual’s age, gender and zip code.  This plan only carries the monthly premium, no deductible at all.

If Medicare Plan F is not the Medicare supplement insurance plan that works best for you then don’t worry, there are at least a dozen Medicare supplement insurance plans available.

Policies will, of course, vary by available plans, coverage, and price. Therefore, before enrolling, make sure you spend time researching the plans and providers available to you, and choose the one that best fits your needs and budget. After you’ve selected the plan and company you are going with, it’s time to apply.

To apply, contact the company directly. They are required to provide you with a coherent summary of your policy, so spend some time reading it and ensuring that you understand it. If you don’t, feel free to ask as many questions as you need to ask. Never sign anything without knowing exactly what you are agreeing to. Once you’ve read the summary and are certain you understand it, fill out the application fully. Be as truthful and thorough as possible. If someone else fills your form out for you, go over it and make sure it is completely correct.

After applying, your policy will usually start the first month after you apply. You can request a specific start date if you like as well. If you don’t get your policy within 30 days you should definitely call the insurance company, and if you still haven’t gotten in within 60 days, you should call the State Insurance Department in your area.

When you pay for your Medigap policy, you can use a bank draft, a check, or a money order. Don’t make your payment out to the agent who was helping you with your enrollment. Rather, make it out directly to the company providing you with your coverage.

Medigap policies, run by private insurance companies but approved by Medicare, are used along side of Original Medicare.  They cover some costs like copayments, coinsurance, deductibles, and, in some cases, extra benefits.  You usually need to have Parts A and B of Original Medicare in order to be eligible to purchase a Medigap policy. You’ll need to pay a monthly premium for this supplemental insurance policy, as well as continuing to pay your Part B premium.  You should also be aware of the fact that when you purchase a Medigap policy, it won’t help to cover any of your spouse’s Medicare coverage gaps. Medigap policies only cover one person per policy. 

Before purchasing a Medigap policy, however, spend some time looking into the various ones available to you.  Insurance companies will charge different prices for their policies, and some specific Medigap policies may not be sold by all companies. 

One of the great things about purchasing Medigap coverage is that, whatever company and policy you chose, you can have peace of mind, knowing that many of the gaps in your Medicare coverage will now be covered. 

Depending on the policy you chose, and sometimes, your age as well, the price of a Medigap policy can vary. . All Medigap policies do follow state and federal laws, and all companies must sell specific standardized policies, but companies will charge different amounts and some will charge more as you get older. Also, some States sell Medigap Select policies which require you to use specific doctors and/or hospitals in order to get full benefits.

In order to enroll in a Medigap policy, you need to be enrolled in the Original Medicare plan, and you usually need to have Medicare Parts A and B. Your Medigap policy will only cover your own Medicare (spouses cannot be included), and you will also need to pay a Medigap premium. Like most Medicare plans, you should enroll in your Medigap policy during your open enrollment period. This period begins when you are enrolled in Part B and it is six months before to six months after the month you turn 65.

Medicare policies can be highly advantageous when facing medical expenses. However, to ensure you get the coverage you need at the price you can afford, spend some time researching policy providers and weighing your options.

PPO plans have a specific network of approved health care providers.  While you may go to other doctors and hospitals not on the list, doing so will usually cost you more.  Choosing a doctor from your PPO plan’s list allows you, then, to save money.  You can also receive care from specialists without a referral, but like choosing your regular doctor, it’s advisable to select one from your plan’s network in order to reduce costs.  Some plans may give you a discount if you give notice when you’re getting service outside of the network. 

PPO plans cover all services offered by Medicare Parts A and B, although the costs differ. In addition to the monthly Medicare Part B premium, you will usually also pay a monthly premium for Part A and Part B coverage, as well as prescription drug coverage and/or extra benefits, if offered by your plan.  Your PPO plan will likely charge additional deductibles, coinsurances, or copayments according to the services you receive.  In a Regional PPO plan, there is an annual out-of-pocket cost maximum.  Local PPO plans may not have a cap.

When choosing your plan, keep in mind that all PPO companies must offer a plan with prescription drug coverage.  If you choose a plan without this coverage, you can’t enroll in a Medicare Prescription Drug Plan.  If you need – or think you may one day need – prescription drug coverage, choose a plan that includes this benefit. 

Medigap is sold by private insurance companies and the plans here are standardized. It has 14 standardized policies that you can choose from which also have different policies.

Because of the Medicare Prescription Drug Improvement and Modernization Act of 2003, Medigap is now also attempting to modernize and will implement a few changes with their coverage as well as their policies.

It has stated that Medigap will have reduced premiums and provide more rational coverage policies in order to create incentives for proper utilization of services.

However, there were also some benefits that were eliminated and benefits added due to the changes made. It included the elimination of at home recovery benefit, created a new hospice benefit, eliminated preventive care benefit, and it also replaced the 80 percent of Part B Excess Charges Benefit to 100 percent.

As you can see, because of the changes, policies were also changes as well as Medigap coverages. So, if you are planning to get Medigap, be sure that you get one of the plans it offers that can provide your needs. By keeping this in mind, you can be sure that you will be able to make more use of your Medigap plans.

If you’ve decided on adding this type of policy, you should now find out which insurance companies sell Medigap policies in your state.  You can call your State Health Insurance Assistance Program for information.  Often, they may have a “Medigap rate comparison shopping guide” which lists your states’ companies and their costs.  You can also call your State Insurance Department. 

Of course, before choosing a plan, you will need to find the one that bests meets your budget and health needs. Compare insurance companies in terms of services and price; don’t hesitate to call around and ask questions!

It’s a good idea not to wait, once you’ve chosen your plan.  The ideal time to enroll, like most Medicare plans, is when you are first eligible.  From three months prior to three months following your 65^th birthday, Medigap insurance companies can’t refuse to sell you any Medigap policy it has or charge you more for a Medigap policy due to your health problems.  It also can’t make you wait for coverage (other than for a pre-existing condition). After your enrollment period, a Medigap insurance company may choose not sell you a policy or may limit your choices.  You can also end up paying more for your coverage.

When you’ve chosen your policy and company and are ready to apply, contact your chosen insurance company.  They are required to give you a clearly worded summary of the policy you are applying for, and must answer any questions you have in terms of understanding it.  Fill out the application carefully and correctly.  When you pay for your policy, it’s advisable to use a check, money order, or bank draft, and don’t make it out to the agent but rather to the company.  Make sure you get a receipt containing the insurance company’s information! 

Purchasing a Medigap Policy to supplement your Original Medicare Plan can be a valuable investment.  Prompt and thoroughly researched enrollment is key, however, when getting the most out of a Medigap policy.