Also referred to as a Medigap plan, Medicare supplemental insurance policies are important for most people who are covered under Medicare. When you turn 65, you can apply for coverage under Medicare, but this insurance will not cover all of your medical expenses. This is the purpose of purchasing additional health insurance. However, there are a few things to understand about Medicare supplemental health insurance. The following are three of them.

You should purchase a Medigap policy during open enrollment

Once you sign up for Medicare, you will have six months to shop for and purchase a supplemental policy. Although it is true that you can obtain a policy after this time, an insurance company can reject your application because of pre-existing conditions. During the open enrollment period, an insurance company cannot turn you down because of pre-existing conditions. And provided you make your premium payments, your policy can never be canceled because of your health.

The plans are the same, regardless of the companies that offer them

Although Medigap plans are sold by private insurance companies, the federal government has regulated their sale. One of the most important things it has done is to standardize them. These policies are defined by law and given letters to designate the plan; they are the same regardless of which insurance company you buy from. Health insurance compete on price, and not on the content of the policy.

Use a strategy for selecting the right plan

First decide on which plan you want, then you can quote this plan to several insurance companies. Keep in mind that not all insurance companies offer every plan; however, all insurance companies are required to offer Plan A, so this is where you should begin. This plan is the most basic; all other plans will contain what Plan A contains but with additional options. Take the time to understand the coverage in Plan A, then begin to look at the additional coverage in the other plans to see if there are other options you desire and are willing to pay additional money for.

The best time to think about a supplemental insurance policy is prior to becoming eligible for Medicare. Planning for your health care costs before you retire will make your finances in your retirement years less stressful. Medicare is a great health plan for retirees, but it is not as comprehensive as you might believe, and it can leave you with high out-of-pockets costs at a time when your income is limited. A good supplemental policy can protect you from financial loss.

For medicare supplement insurance, contact a company such as Shifflett Insurance Services Ltd.