In the United States, the government is offering two health care programs for people. One of these programs is Medicare. This endows elderly people, the blind and other people with disabilities with health care benefits. The other program presented by the US government is Medicaid, which like Medicare provides health care assistance, although this is intended for low-income level individuals. Both are funded by the federal government, but Medicaid is administered by individual states.
Both programs aim to help people who do not have their own health insurance. Sometimes when they do qualify for either of the programs, there are instances when financial assistance extended by these government programs still cannot cover costs incurred by people for their health care or are not covered by Medicare or Medicaid at all.
People have the choice to obtain insurance policies that are sold by private entities which can cover the health care services and expenses which were not covered by Medicare. These insurance policies are called Medicare supplemental insurance or Medigap. These kinds of private health insurance are becoming very popular among individuals who have obtained Medicare benefits since the amount of assistance and services included in the federal program has been cut down in order for the government to limit its expenditures and save money which it can use to help the economy and provide for other projects.
The Medicare supplemental insurance program was developed and implemented by the Centers for Medicare and Medicaid Services department of The United States Health and Human Services Department (HHS). Medigap has been grouped by the HHS into twelve, known as Plans A to L, which people can choose from. These 12 insurance options are overseen by private agencies that have registered with the federal government in order to sell extra health insurance coverage to individuals who have Medicare.
Medicare supplement insurance guidelines can be different from state to state. There are some states that have set its own rules which private companies must follow for their policy guidelines and pricing. Although a good majority of states permit private agencies to lay down their own measures for their policies and fees. There are even states where prescription medicine should be covered under all the plans of these Medicare supplemental insurance.
Even though Medicaid and Medicare are under the same plan and are almost similar since they both provide health care assistance and benefits, there is no Medicaid gap insurance offered by any group or company, private or government owned, which will cover costs and services that Medicaid will not cover. This is mostly due to the fact that Medicaid benefits and assistance can be more or less considered a full health insurance.
Many people often get confused and claim that they have heard about Medicaid gap insurance even if it is not offered. This may be because Medicaid and Medicare are funded by the federal government. Medicaid is intended for giving out extensive health care coverage for individuals who meet the income requirements. Since Medicaid covers most health care costs and services, buying extra health insurance for additional coverage is really not essential. And since Medicaid is offered to low-income groups of people, they would encounter more difficulties when they purchase additional insurance, which add more expenses to them.