We've been helping people find their perfect Medicare plan for over 10 years.

Medicare Supplement Vs Supplemental Insurance

Supplemental health insurance is any type of health insurance policy that you can buy to “supplement” your current health care coverage. Medicare Supplement Insurance (Medigap) is standardized type of private insurance that is only available to people who have Medicare. A lot of people use the words “supplement” and “supplemental” interchangeably, but as we can see, they actually are two different things. 

Read on to learn more about the differences between supplemental health insurance and  Medicare Supplement Insurance.

Doctor with clipboardWhat Is Supplemental Health Insurance?

Supplemental insurance is any coverage that goes beyond what is included in your standard health care plan. Depending on the type of plan you buy, supplemental insurance may help cover some out-of-pocket costs (such as deductibles, coinsurance or copays) or pay a lump sum of cash in the event of a specific event or illness.

You can purchase supplemental health insurance to cover different types of illnesses or possible conditions. Critical illness insurance, accident insurance and hospital indemnity insurance are some of the most common types of supplemental policies available.

  • Critical illness insurance generally works by paying out a lump sum of cash if you are diagnosed with a serious illness that has been predetermined within the policy. Cancerheart attack and stroke are the three common conditions covered by critical illness insurance. The payout of these plans can be used for whatever you need while recovering, such as medical bills, living expenses or child care while you are in the hospital.  
  • Hospital indemnity insurance will pay out every time the policyholder checks into the hospital for an overnight stay, whether that be due to an accident or serious illness. With these plans, you may get paid in a lump sum or in installments for every day you are in the hospital. Hospital insurance is not tied to a specific condition like critical illness policies. With these plans, you are covered for whatever brings you to the hospital, provided the reason isn’t excluded by the policy.
  • Accident insurance works like critical illness insurance, but it covers accidental injuries, such as broken bones and dislocations. Like other kinds of supplemental insurance, you can use your payout for whatever expenses you choose.

The cost of supplemental insurance varies based on the carrier and type of policy you buy. For most plans, especially illness-related insurance, the provider will likely use your medical history to determine the monthly premium. Higher-risk applicants may face higher premiums or be denied coverage altogether.

Anyone who is unhappy with the extent of their current medical coverage can purchase theses policies; you don’t have to have a specific type of health insurance to get most types of supplemental health insurance.

What Is Medicare Supplement Insurance?  

Medicare Supplement Insurance, also known as Medigap, is only available to people enrolled in Original Medicare (Part A and Part B). You may not have a Medicare Supplement Insurance plan and a Medicare Advantage plan (Part C) at the same time.

These policies are sold by private insurance companies and help Medicare beneficiaries by covering some of the program’s out-of-pocket costs, such as Medicare copayments, coinsurance and deductibles.

You are not required to have Medigap if you are on Medicare, but many people do. In 2015, 22% of people on Medicare were enrolled in a Medigap policy. Medigap policies can cover a lot of what is included in other supplemental insurance policies, including extended stays in the hospital or emergency medical cover while abroad.

If you sign up for Medicare Supplement Insurance during your Medigap open enrollment period, insurance companies cannot use your medical history to charge you more for a policy or deny your application. Your open enrollment period lasts for six months and automatically begins the month you are both 65 and enrolled in Medicare Part B.

In most states, there are 10 standardized Medigap plans that include different levels of basic benefits. The plans are named by letter (Plans A, B, C, D, F, G, K, L, M and N).

The chart below shows which benefits are included in each of the standardized Medigap plans. A check mark means the plan covers that benefit.  

2017 Medigap Plans Chart

Want more information? Check out this helpful guide to learn more about how Medicare Supplement Insurance works, including eligibility, costs and options in your area.

Connect with a licensed insurance agent today to find a Medicare Supplement Insurance plan that works for you by calling 1-888-264-0148. 



I want to compare Medicare Supplement Plans.

Start Online
Or chat about my options with an agent:1-888-264-0148

Resource Center

Supplement Your Medicare Coverage With Medigap

If you have Original Medicare, a Medicare Supplement Insurance plan can reduce your out-of-pocket spending. Learn how.

Read More

Medicare Supplement Insurance

If you don't have Medicare Supplement Insurance, you could be paying too much for Medicare coverage. Learn more.

Read More

Supplement Insurance Policies for Medicare

There are Medicare Supplement Insurance policies available that can help pay for some of Medicare's out-of-pocket costs.

Read More

Medicare Supplement Insurance Plans

Medicare Supplement Insurance (Medigap) plans offer basic benefits that cover certain out-of-pocket health insurance costs. Learn more and find the best plan.

Read More

Medicare Supplement Insurance Costs

Learn more about how Medicare Supplement Insurance plan rates are determined and get free policy quotes from a licensed insurance agent.

Read More

Medicare Supplemental Insurance Options

Should you get supplemental insurance for Medicare? Learn more about your options and get help figuring out what coverage you need.

Read More

What is Medicare Supplement Insurance?

If you'd like to save money on Medicare costs, here's why you should consider Medicare Supplement Insurance (Medigap).

Read More

Comparing Medicare Supplement Insurance Plan Costs

Medicare Supplement Insurance plan costs will vary based on provider, location and your age. Learn more and compare free Medigap plan quotes.

Read More

What Is a Medicare Supplement Insurance Plan?

Each type of Medicare Supplement Insurance plan offers a different combination of basic benefits. Compare Medigap plans to find the right fit for your needs.

Read More