Medical/Surgical Policy

These policies pay a set percentage of covered medical or surgical expenses. Reimbursement rates are based on “usual and customary charges,” which may differ from Medicare’s amounts.

Since payments are not based on Medicare’s amounts, these policies may cover some excess charges. Some medical/surgical policies cover procedures that Original Medicare may not pay for.

These policies typically cost more for older people. They only cover medical or surgical expenses. Hospital or skilled nursing facility expenses are not covered.

Also, be sure to look at the underwriting restrictions when considering this type of policy. They are sometimes severe.