Medicare supplemental insurance is specifically designed to supplement Medicare coverage by filling benefit "gaps" inherent in Medicare coverage. These supplemental policies are generally referred to as medigap plans and are offered through private insurance companies, a retiree's prior employer's plan, or union health plans. They are available under various brand names; however, these plans are regulated by federal and state laws. There are currently ten standard policies which vary in the benefits offered and in their premium costs. All insurance companies, if they choose to offer medigap-type insurance coverage in most states*, must include certain benefits.
Medicare SELECT is a special type of medigap policy that must comply with one of the 10 standard supplemental policies. To be eligible for full benefits, it may require you to use providers within a network. Since it has limitations, you may find the premium for this coverage to be lower than other medigap coverage.
In addition to standardizing benefits for all medigap plans of the same type, state and federal laws provide the right to persons age 65 or older who are enrolled in Medicare Part B to be covered by a medigap policy. Enrollees may have the policy of their choice regardless of health problems, provided they join during an open medigap enrollment period.
To verify which standard policies are offered in your area, contact your state or area bureau of insurance or corporation commission or see For More Information section listings that are noted with *.
* Except Minnesota, Massachusetts, and Wisconsin