What is a Medicare Supplement insurance policy?
Medicare Supplement insurance is a health insurance policy sold by private insurance companies designed to work hand-in-hand with Medicare.

There are several standardized Medicare Supplement insurance policies. Each plan has a different set of standardized benefits, from the least amount of benefits to plans that offer more benefits.

Medicare Supplement insurance policies only help pay health care costs if you have the Original Medicare Plan.

Is there a difference between a Medicare HMO and Medicare Supplement insurance?
Yes. This article only explains the basics of Medicare Supplement insurance.

What doctor can I see?
You don't have to worry about giving up the doctor you've been with for years. You can go to any doctor or health care provider who accepts Medicare. You never need a referral to see a specialist.

What hospital can I use?
You can go to any hospital you choose, as long as it is Medicare approved.

Why do I need a Medicare Supplement insurance policy?
A Medicare Supplement insurance policy can help in lowering your out-of-pocket costs such as co-payments, deductibles, and coinsurance.

Other factors that may affect the cost:

• Whether you smoke or not
• Medical Underwriting — In this process the company uses your health status and medical history to decide whether to accept your application for insurance. You need to fill this application out carefully and completely. (NOTE: The company cannot underwrite or deny coverage if the prospect is in their open enrollment period.)

When is the best time to buy a Medicare Supplement insurance policy?
The best time to buy a Medicare Supplement Insurance Policy is during your open enrollment period. This open enrollment period lasts for 6 months. It starts on the first day of the month in which you are both:

• Age 65 or older, and
• Enrolled in Medicare Part B

Once the 6 month open enrollment period starts, it can't be changed. During this period, an insurance company cannot:

• Deny you insurance coverage,
• Place conditions on an insurance policy, or
• Change the price of the insurance policy because of past or present health problems.

How can I tell if I am in the Open Enrollment Period?
Your red, white and blue Medicare card will show the date your Part A and Part B Medicare coverage started. If you are age 65 or older, add 6 months to the date that your Part B coverage starts to figure out if you are in your open enrollment period. If that date is in the future, you are still in the open enrollment period. If that date is in the past, you have missed the open enrollment period.

What if I am 65 or older and still working?
You may want to wait to enroll in Medicare Part B if you have health coverage through an employer or your spouse's current or active employment. The open enrollment period will not start until after you sign up for Medicare Part B. Remember, once you are age 65 or older and enrolled in Medicare Part B is when the open enrollment period starts and cannot be changed.

What if I enrolled in Part B and did not use my open enrollment period to buy a Medicare Supplement insurance policy?
If you applied for your Medicare Supplement insurance policy after the open enrollment period has ended, the company is allowed to use medical underwriting to decide whether to accept the application and how much to charge for the insurance policy. If you are in good health, the company will likely accept your application, but there is no guarantee.

Is Medicaid different from Medicare?
Yes! Medicaid is a joint Federal and State program that helps pay medical costs for some people with low incomes and limited resources. Medicaid programs vary from state to state. Most of your health care costs are covered if you qualify for both Medicare and Medicaid. People on Medicaid may also get coverage for nursing home care and outpatient prescription drugs, which are not covered by Medicare.

There are states that have programs that pay some or all of Medicare's premiums and may also pay Medicare deductibles and coinsurance for certain people who have Medicare and a low income. To qualify for these programs, you must:

• Have Medicare Part A (hospital insurance). If you're not sure if you have Part A, look on your red, white and blue Medicare card or call the Social Security Administration at 1-800-772-1213.
• Meet certain income limit requirements. The income limits change from year to year — call your state medical assistance office for current information or visit www.medicare.gov
• Have savings of $4,000 or less for an individual or $6,000 or less for a couple. Savings include money in a checking or savings account, stocks or bonds.

Source: Medicare and You, Choosing a Medigap Policy - 2004