The American Association of Retired Persons (AARP) offers its members Medicare supplement policies that are designed to fulfill the requirements of a Medigap policy--that is, provide health insurance from a private insurer that fills the gaps in Medicare Parts A and B coverage. The Medigap policies offered by AARP, called Medicare Supplement Insurance Plans, are insured by UnitedHealthcare Insurance Company, which pays a royalty fee to use the AARP name. AARP is not the insurer.
Medicare Supplement Insurance Function
The Medicare Supplement Insurance Plans offered by AARP are designed to provide coverage for co-payments required by Medicare. Although Medicare Parts A and B cover a variety of expenses for hospital care and medical services, there are limits to the coverage. For example, if you are hospitalized for a minimum of three days, Medicare Part A benefits are available for up to 100 days of convalescing in a skilled nursing facility after your discharge from the hospital. Medicare will pay the first 20 days in full; however, the remaining 80 days require a co-payment as determined by the Social Security Administration (SSA), which for 2010 is $137.50 per day. AARP Medicare Supplement Insurance Plans address this gap in coverage.
Types of Supplement Plans
Medicare regulations specify twelve different standardized Medigap plans, identified in the regulations as plans A through L. AARP Medicare Supplement Insurance Plans include all twelve types of plans, and are provided through UnitedHealthcare Insurance Company. The costs and specific benefits of any of these plans depend on the state you reside in and your specific circumstances.
Benefits
The twelve standardized AARP Medicare supplement policies provide different levels of coverage for the different gaps in coverage provided by Medicare. You can choose a plan that increases your basic hospital coverage, such as providing for a private room or paying for part or all of your Medicare Part B co-payments. Some policies also provide broader benefits for such things as at-home recovery, preventive care and emergency care during foreign travel.
State Variations
Although the twelve standardized Medicare supplement policies offered by AARP are available in most states, the plans available in Massachusetts, Minnesota and Wisconsin vary due to state regulations. The AARP website provides a web page you can use to determine what plans are available to you.
Considerations
Because all Medicare supplemental policies, including those sold by AARP, must offer the same specific benefits set forth in the Medigap Plans A through L, you can easily compare different policies offered by different insurance companies. This is an important part of choosing a supplemental policy because insurers can charge different premiums for the same coverage. Also, in most cases, you must have Medicare Parts A and B in order to purchase a Medicare supplemental policy. If you purchase a Medicare supplemental policy, you will have to pay both a premium for Medicare Part B coverage and the premium for your supplemental policy. Compare AARP's policies with policies offered by other insurers before choosing a Medicare supplemental policy.
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