DEFINITION of 'Medicare Supplementary Medical Insurance - SMI'

Health insurance sold by private insurance companies meant to top up an original Medicare plan. Medicare supplementary medical insurance, commonly known as Medigap, covers additional healthcare costs that may not be covered under the traditional Medicare plan, such as emergency room services and ambulatory surgical procedures.

BREAKING DOWN 'Medicare Supplementary Medical Insurance - SMI'

Medicare supplemental heath insurance has 12 standardized policies, categorized as plans A through L. Typically, when purchasing supplemental medical insurance, one must already be covered under Medicare A and B. In addition to any premiums associated with the original Medicare plan, subscribers must also pay premiums for any Medigap services they purchase over and above their original plan; however, as long as premiums are paid in good order, Medigap insurance policies are guaranteed to be renewed the following year.

RELATED TERMS
  1. Guaranteed Issue Rights

    A right afforded to individuals insured under Medicare that requires ...
  2. Medicare Part B Premiums

    A monthly fee that Medicare participants pay for medical insurance ...
  3. Medicare Advantage

    Hospital and medical insurance provided by private companies ...
  4. Medicare Wages

    An employee's earnings that are subject to a U.S. payroll tax ...
  5. State Health Insurance Assistance ...

    State Health Insurance Assistance Programs (SHIP) offer free ...
  6. Medicare Part D

    A prescription drug benefit program that was created through ...
Related Articles
  1. Insurance

    Medigap Insurance: Who Needs It?

    You already have Medicare. Why would you need to spend more money on Medigap? Here's why.
  2. Retirement

    5 Reasons You Might Need a Medigap Plan

    If you find yourself with sizable out-of-pocket expenses despite having Medicare, a Medicare supplement plan – or Medigap – can help reduce your bill.
  3. Financial Advisor

    Breaking Down Medicare Open Enrollment for Clients

    For financial advisors, open enrollment is an important opportunity to be of service to clients, especially when it comes to reviewing Medicare options.
  4. Insurance

    Medigap Vs. Medicare Advantage: Which Is Better?

    To protect against a huge bill for health costs Medicare doesn't cover, you need Medigap insurance or an HMO-like Medicare Advantage plan. How to choose.
  5. Managing Wealth

    Have Medicare? Which Employer Health Plan to Get

    Over 65 and still working? You're eligible to register for Medicare, but should you also opt for employer health insurance, if offered – and which plan?
  6. Managing Wealth

    Planning for Healthcare

    Planning how to pay for healthcare during retirement is a must—and the earlier you do it, the better. Medicare often fall short, so here are your options.
  7. Retirement

    Pitfalls of Medicare Advantage Plans

    A Medicare Advantage plan may help you lower health costs not covered by Medicare. But there are definite tradeoffs, compared to classic Medicare/Medigap.
  8. Financial Advisor

    Filling In The Medicare Gaps

    Basic Medicare is not a perfect fit for everyone - sometimes, extra policies are required to suit a person's needs.
  9. Managing Wealth

    Find the Best Medigap Plan for You

    Picking a plan to fill in the “gaps” in Original Medicare from the alphabet soup of options can be daunting. Here are guidelines that can help.
RELATED FAQS
  1. Can I get dental insurance with Medicare?

    Learn about Medicare and how it does not offer dental insurance and only covers specific dental procedures under certain ... Read Answer >>
Hot Definitions
  1. Financial Statements

    Records that outline the financial activities of a business, an individual or any other entity. Financial statements are ...
  2. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  3. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  4. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  5. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  6. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
Trading Center