Medicare Supplement Insurance (also known as Medigap) is private health insurance that “supplements” Original Medicare. When you go on to Medicare you have a deductible for the part A (hospital coverage) and a deductible for the part b (outpatient services). After the deductible there is a coinsurance of typically 20%. This is when the Medigap policy kicks in and can pay for both the deductible and the coisnsurance. A Medigap plan is different than a Medicare Advantage plan as those plans are ways to get Medicare benefits whil the Medigap plan supplements the Original Medicare coverage.
Medigap plans follow federal and state laws and must be clearly stated as “Medicare Supplement Insurance”. In most states Medigap companies can only sell “standardized” termed by the letters A through N. What this means is the same basic benefits must be offered by all companies. The typical difference be that of price. This is a major reason to Compare Medigap Plans.