Medicare Supplementary Medical Insurance - SMI

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. Medigap

    Also called Medicare Supplement Insurance, Medigap is health ...
  2. Guaranteed Issue Rights

    A right afforded to individuals insured under Medicare that requires ...
  3. Medicare Advantage

    Hospital and medical insurance provided by private companies ...
  4. Medicare Part D

    A prescription drug benefit program that was created through ...
  5. Medicare Hold Harmless Provision

    A legal statement prohibiting an increase to Medicare B premiums ...
  6. Medicare Catastrophic Coverage ...

    A government bill designed to improve acute care benefits for ...
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 Advisors

    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

    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?
  5. Navigating the Medicare Maze

    After a certain age, it might seem like birthdays lose a little of their luster. But with your 65th birthday comes something that a lot of seniors look forward to: insurance coverage through ...
  6. 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.
  7. Insurance

    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.
  8. Retirement

    How Much Will Healthcare Cost After You Retire?

    The price tag may shock you, which is why you should do some pre-retirement calculations. The fact is, Medicare is not going to cover it all.
  9. Retirement

    How Does Medicare Work After Retirement?

    One of the most important topics in retirement is Medicare. Here's the lowdown on how it works and what it may cost you.
  10. Retirement

    How to Choose the Best Medicare Advantage Plan

    Medicare Advantage offers an alternative to Medicare and Medigap. Here’s what you need to know to choose the best plan.
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 >>
  2. Why did my Social Security benefits decrease?

    I am now 80 years old and I retired at 70.  For years, my social security benefits have increased somewhat.  I ... Read Answer >>
  3. What effect has the sustainable growth rate had on Medicare disbursements?

    Read about the impact of the Medicare sustainable growth rate mechanism on rising Medicare costs and physician reimbursements ... Read Answer >>
  4. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.? (UNH, ...

    Read about the impact of Medicare and Medicaid on the drugs sector in the United States and how some doctors get rich by ... Read Answer >>
  5. Does Medicare provide assistance for patients unable to perform Activities of Daily ...

    Find out how Medicare provides some benefits, both direct and indirect, for those who are unable to perform some of the activities ... Read Answer >>
  6. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center