Types of Supplemental Insurance
Supplemental insurance policies include plans for:
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Cancer
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Heart disease
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Accident
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Disability Income
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Hospitalization
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Medicare Supplement
Supplemental insurance such as cancer and heart disease policies fall into two
main categories. There are those that provide a one-time lump-sum benefit and
others that are expense-based.
Accident and hospital policies are typically indemnity-based; in other words,
the policy will pay specified amounts for certain covered conditions.
Medicare Supplement policies in most states currently fall into 10 standardized
plans. They are designated by the letters A through N. Plan F has a high-deductible
version. Plans K, L, M, and N provide for different cost sharing and may have lower
premiums. Medicare Select policies are similar to Medicare Supplement polices except
that they have certain network restrictions.
- Plans D and G effective on or after June 1, 2010 have different benefits than those with effective dates prior to June 1.
- Plans E, H, I, and J were discontinued for sale after May 31, 2010. Policyholders with active coverage with effective dates prior to June 1, 2010 may keep their existing coverage and will not be required to change or buy a new plan.
Medicare Supplement Plan A offers basic benefits. Plans B through N offer
additional specified combinations of benefits such as skilled nursing co-insurance,
Medicare Part A and B deductibles, Part B excess charges, foreign travel emergency,
and Hospice.
