supplemental insurance

Average Cost of Medicare Supplemental Insurance in the US

Happy senior man

Happy senior man

When you reach retirement age, Medicare insurance offers basic medical insurance protection for your health needs. However, this coverage is basic and does not cover all of the costs for covered medical services and supplies. Medicare supplemental insurance policies are known as “Medigap insurance” and they fill in the gaps in Medicare coverage.

A financial advisor could also help you create or adjust a financial plan for your medical care needs in retirement. Let’s break down the average cost of Medicare supplemental insurance.

What Is Medicare Supplemental Insurance?

Medicare supplemental insurance plans cover the costs that you’re responsible for with Original Medicare. These policies are offered by private insurance companies and are on top of your Part A and Part B benefits. Supplement insurance policies offer a predictable monthly expense versus the unknown cost of visiting a doctor or going into the hospital.

Original Medicare insurance policies are offered by the government to provide medical insurance for senior citizens through Part A and Part B policies. Unfortunately, these policies do not pay for all of the costs of covered medical services and supplies. Medicare supplemental insurance (aka Medigap insurance) fills in these gaps to help pay for some of the remaining health care costs.

Medigap insurance policies help pay for co-payments, co-insurance amounts and deductibles. Additionally, some Medigap policies cover medical care when you travel outside the US Traditional Medicare policies (Part A and Part B) do not cover international medical care.

Medicare Supplemental Insurance Exclusions

Some Medigap policies include prescription drug benefits as part of their plan. When a plan does not include prescription drug coverage, then you can buy a standalone Medicare Part D insurance policy.

Medicare supplemental insurance provides additional benefits and reduces your out-of-pocket expense for covered services. However, some services are

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