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 B Premiums

    A monthly fee that Medicare participants pay for medical insurance ...
  5. Medicare Wages

    An employee's earnings that are subject to a U.S. payroll tax ...
  6. Medicare Part D

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

    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. Retirement

    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. Retirement

    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. Retirement

    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 ...
  7. Retirement

    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.
  8. 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.
  9. Retirement

    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.
  10. Retirement

    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. What are the best options for a retired teacher's supplemental insurance and benefits?

  2. 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 >>
  3. Can my wife receive spousal benefits and Medicare (based on my earnings) when I file ...

    I will take Social Security at age 63 due to medical issues. My wife, 66, does not have enough credits for SS or Medicare.  ... Read Answer >>
  4. Can I deduct Social Security and Medicare taxes paid on my 2015 tax return?

    I am 73 years old, retired, and receiving social security. I earned $2,025 in 2015 as a substitute teacher.  $126 in ... Read Answer >>
  5. How will single payer health care affect major healthcare and pharmaceutical ETFs?

  6. 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 >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center