AARP Medicare Supplement Plans: Providing Extra Coverage for Seniors

Medicare began in 1965 as part of the Social Security Act to assist those 65 and older with medical costs. Despite government efforts, many Americans remained uninsured, leading to further legislation like the Affordable Care Act to mandate insurance coverage and protect individuals with preexisting conditions.

The question pertains to the rules surrounding AARP Medicare supplement plans. These plans are designed to provide additional coverage to what is already offered by Medicare, a federal health insurance program for individuals 65 years and older. In 1965, Medicare was established as part of the Social Security Act, and it has since been a critical part of meeting the primary medical care needs of seniors, covering approximately 40 million people in the early 2000s.

Despite government-funded health insurance programs like Medicare, the Patient Protection and Affordable Care Act (commonly known as Obamacare) recognized the need for further action as many Americans still lacked health insurance, especially those with lower-paying jobs. It sought to address this issue by mandating that all Americans purchase health insurance and preventing providers from denying coverage based on preexisting conditions. This helped to provide at least basic health insurance for all, thereby attempting to solve the adverse selection problem in health insurance markets.

Medicare supplement plans, often referred to as Medigap, are standardized in many states, meaning they are required to be offered and must contain basic levels of coverage. These plans are key for those who need help covering out-of-pocket costs not paid by Medicare, such as copayments, coinsurance, and deductibles.