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Many seniors and younger will need supplemental insurance to pay for
expenses not covered by Medicare. It should be noted that neither Medicare
nor Medicare supplement policies cover most long term care insurance
expenses.
There are many types of health insurance coverages that you can purchase
to supplement your Medicare coverage. Supplemental insurance will pay for
some or all of your health care costs that are not covered by Medicare.
These types of health insurance coverages include:
Employee or Retiree Coverage
(from your employer or union)
Medigap Insurance
(from a private company or group).
People often refer to all of these types of health insurance coverages as
"supplement insurance." However, "Medicare Supplement" or "Medigap"
insurance is a specific type of insurance that is subject to federal and state
laws.
Medigap (Medicare Supplement Insurance)
Medicare supplement insurance policies that are sold by private insurance
companies to Medicare beneficiaries to fill the "gaps" in Original Medicare
Plan coverage. There are ten standardized policies, Plan A through Plan J.
Your state decides which of the 10 policies can be sold in your state.
Medigap policies only work with the Original Medicare Plan.
Medicare SELECT (Medicare Supplement Insurance)
A type of Medigap policy that must meet all of the requirements that apply to
a standard Medigap policy. You may be required to use doctors and
hospitals within its network in order to be eligible for full benefits.
Managed Care Plans (Medicare Supplement Insurance)
A Managed Care plan involves a group of doctors, hospitals, and other
health care providers who have agreed to provide care to Medicare
beneficiaries in exchange for a fixed amount of money from Medicare every
month. Managed Care plans include Health Maintenance Organizations
(HMOs), HMOs with a Point of Service (POS) option, Provider Sponsored
Organizations (PSOs), Preferred Provider Organizations (PPOs), and Cost
Plans. **
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