Private Insurance

Many older people buy supplemental health insurance from private companies. Some insurance companies offer long-term care insurance, paid for with monthly fees. The decision to buy long-term care insurance depends partly on whether a person would need help paying for long-term care and on whether the person can afford long-term care insurance. Some states have special private insurance programs in which a person can qualify for Medicare reimbursement of long-term care expenses without the usual spend-down requirement. To qualify, the person must have received benefits from the private insurance policy for a specified period.

Medigap: Medigap is supplemental insurance designed to pay for medical care not covered by Medicare, including the deductibles and copayments required by Medicare and extra charges by doctors who do not accept Medicare as full payment for a service. Medigap policies do not duplicate payment for services covered by Medicare Parts A and B. However, Medigap policies may duplicate payment for many services covered by Medicare + Choice plans. The best time to purchase Medigap insurance is during an enrollment period that begins when Medicare Part B is purchased and ends 6 months later. At other times, Medigap may be unavailable or more expensive. Many insurance companies offer Medigap insurance.

There are 10 types of Medigap policies, labeled A through J. Each type offers a different set of benefits. But the benefits of a specific type are the same no matter which insurance company offers it. No Medigap policy covers payment for long-term personal care (at home or in a nursing home), vision or dental care, hearing aids, private-duty nursing, or all prescription drugs. However, additional insurance policies that cover such services can be purchased.