As we get older, our healthcare needs tend to grow—along with the costs. Even with Medicare, many seniors are surprised to find that they still have to pay out of pocket for things like copayments, deductibles, and services that Medicare doesn’t fully cover. That’s where supplemental health insurance can come in handy.

But how do you know if you really need it? Let’s take a look at what supplemental insurance is and how to decide if it’s right for you.

What Is Supplemental Health Insurance?

Supplemental health insurance is extra coverage that helps pay for healthcare costs that Medicare doesn’t fully cover. These plans are often referred to as Medigap plans. They can help with:

• Deductibles and copayments
  
• Hospital stays beyond what Medicare covers
  
• Skilled nursing facility costs
  
• Emergency care when traveling outside the U.S.
  
• Some people also purchase separate supplemental policies for specific needs, like dental, vision, or cancer care.

5 Signs You Might Need Supplemental Insurance

1. You Have Frequent Doctor Visits or Health Conditions

If you manage chronic conditions like diabetes, arthritis, or heart disease, you likely see doctors regularly and take multiple prescriptions. Supplemental insurance can help you manage the costs of ongoing care.

2. You’re Worried About Unexpected Hospital Bills

Original Medicare (Part A and Part B) doesn’t cover everything. A sudden hospital stay could cost thousands in deductibles and coinsurance. A Medigap plan can limit these out-of-pocket expenses.

3. You Like to Travel – Especially Outside the U.S.

Original Medicare usually doesn’t cover healthcare outside the United States. Some Medigap plans do include emergency foreign travel coverage—peace of mind if you’re planning a big trip.

4. You’re On a Fixed Income

If you live on a fixed income, unexpected medical costs can be stressful. Paying a monthly premium for a Medigap plan might be more manageable than facing large bills later.

5. You Want Simpler Billing

Supplemental insurance can make medical billing easier. Instead of getting multiple bills from different providers, many plans coordinate directly with Medicare, streamlining the payment process.

Things to Consider Before You Buy

Monthly Premiums: Supplemental plans come with a monthly cost. Make sure it fits your budget.

Coverage Gaps: Think about what services you use most. Some supplemental plans cover dental, vision, or hearing—services that Original Medicare doesn’t cover at all.

Open Enrollment: The best time to buy a Medigap policy is during your 6-month Medigap open enrollment period, which starts when you’re 65 or older and enrolled in Part B. During this time, you can’t be denied coverage due to pre-existing conditions.

Final Thoughts

Supplemental insurance isn’t for everyone, but it can be a valuable tool for protecting your health and your finances. The key is understanding your own health needs, travel plans, and budget. Talk with a licensed insurance advisor or your State Health Insurance Assistance Program (SHIP) to help compare your options.

And remember: it’s not just about saving money—it’s about peace of mind.