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 Part B Premiums

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

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

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

    State Health Insurance Assistance Programs (SHIP) offer free ...
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. 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?
  5. 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.
  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. Retirement

    Medicare Open Enrollment Ends Dec. 7

    Avoid these 4 mistakes during the Medicare Open Enrollment period (Oct. 15 to Dec. 7).
  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. Mobile Wallet

    Mobile wallet is a virtual wallet that stores payment card information on a mobile device.
  2. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  3. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  4. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  5. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  6. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
Trading Center