Colorado Medicare Supplemental Insurance (Medigap)

Colorado offers 12 out of the 12 standardized Medigap health insurance policies (referred to by letters A through L). A standardized policy is one that dispenses exactly the same benefits as other benefit packages of the same letter, regardless of which supplemental health insurance company you use.

You may choose to purchase a high-deductible option on your plan. In this case, your Medigap policy will pay for your supplemental health insurance costs only after you've reached the annual deductible ($1,900 in 2008). The Medigap deductible rate increases every year.

Any standardized Medigap plan may be sold as a Medicare SELECT plan. A Medicare SELECT plan is identical to a regular Medigap plan, but requires the policy holder to choose from a predetermined network of health care providers. At the moment, not all Medicare SELECT plans are available to all Medicare members in Colorado.

In Colorado, every health insurance company selling Medigap insurance plans to seniors must abide by a set of federally enforced regulations. Colorado's Medicare supplemental insurance program is regulated by SHIP (Colorado Senior Health Insurance Assistance Program). SHIP is a counseling agency offered for Medicare members and their families who need help with issues related to Medicare, Medigap, long-term health care insurance and other health insurance options.

Some Medicare members in Colorado still carry Medicare Supplement Policies H, I, or J (originally with prescription drug coverage). However, the Medicare Modernization Act that passed through Congress revoked the right for Medicare to offer standard policies providing prescription drug coverage. If you are enrolled in any of these Medicare policies and don't have additional prescription drug coverage, you'll need to enroll in Medicare's stand-alone prescription drug coverage plan. Medigap policies in Colorado or any of the 50 U.S. states do not offer prescription drug benefits.

Medigap Supplemental Health Insurance Policies A-J in Colorado

The following basic benefits must be offered in all Medigap policies A-J:

• The first three pints of blood in each calendar year, unless that blood is replaced.
• The total cost of in-hospital care beyond the standard 150 days covered by Medicare, until a maximum of 365 lifetime days.
• Co-insurance for days 61-90 in the hospital ($265 per day in 2008), as well as co-insurance for your 60 lifetime reserve days.
• Co-insurance benefits of 20% for charged approved by Medicare after Medicare's Part B annual deductible of $135 has been reached.

Medigap Plan A offers only these basic benefits. Medigap Plans B through J offer additional benefits to those listed here.