What is Medicare Supplement (Medigap) Insurance?
Original Medicare (Parts A and B) doesn't cover everything. There are deductibles, copayments, and coinsurance costs that can add up quickly. Medicare Supplement insurance — also called Medigap — is sold by private insurance companies to help pay some of the health care costs that Original Medicare doesn't cover.
How Medigap Works
If you have Original Medicare and a Medigap policy, Medicare pays its share of the Medicare-approved amount for covered health care costs. Then your Medigap policy pays its share. You pay a monthly premium to the private insurance company for your Medigap policy in addition to your monthly Part B premium.
Common Medigap Plans
Plan G
One of the most comprehensive Medigap plans available. Covers Part A coinsurance, Part B coinsurance, blood, Part A hospice care, skilled nursing facility coinsurance, Part A deductible, and foreign travel emergencies.
Plan N
Covers most of the same benefits as Plan G but requires copayments for some office visits and emergency room visits. Often has lower premiums than Plan G.
Plan F
The most comprehensive Medigap plan — covers all gaps in Original Medicare including the Part B deductible. Only available to those eligible for Medicare before January 1, 2020.
Plan K & L
Cost-sharing plans with lower premiums. You pay a percentage of costs up to an annual out-of-pocket limit, after which the plan pays 100% of covered services.
Important Things to Know
- ✓Medigap policies only work with Original Medicare — not Medicare Advantage plans.
- ✓The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period, which starts the month you turn 65 and are enrolled in Part B.
- ✓During Open Enrollment, insurers cannot deny you coverage or charge you more due to pre-existing conditions.
- ✓Medigap policies are standardized — Plan G from one company covers the same benefits as Plan G from another. The difference is the premium.