When shopping for Medicare Supplement insurance, you should first understand completely how Medicare works. Since Medicare does not cover all heath care expenses, Medicare supplement insurance is sold as supplemental health insurance for Medicare recipients. There are a number of gaps in Medicare coverage, so this Medicare supplement insurance is often known as Medi-gap. Although health insurance companies provide Medicare supplement insurance coverage, they are strictly regulated by both the federal and state government.

People who are covered under Parts A and B often buy “Medigap” insurance to pay for things not covered by Medicare, such as deductibles and copayments. Medicare has established twelve standard types of Medigap policies. Different types of Medigap polices cover different things. The more comprehensive the coverage, the higher the cost. To get the best deal, you should apply for Medigap insurance when you first become eligible. Then you can buy any type of Medigap policy at the same rate as everyone else, regardless of your health situation. If you wait, an insurer may refuse to sell you certain types of insurance or may charge higher rates.