Medicare Supplement Insurance (Medigap), also known as Medicare supplement plans, is extra insurance that you can purchase from a private health insurance company to help cover your share of out-of-pocket costs in Original Medicare.
Here are the key points about Medigap:
Purpose: Medigap policies are designed to fill in the gaps left by Original Medicare coverage. After Medicare pays its share of covered services, Medigap helps cover certain out-of-pocket costs, such as copayments, coinsurance, and deductibles.
Eligibility: To buy a Medigap policy, you generally need to have both Medicare Part A (which covers hospitalization costs) and Medicare Part B (which covers doctor’s bills and other medical expenses)
Standardization: In most states, there are 10 government-standardized Medigap plan types. These plans offer different levels of coverage, allowing you to choose the one that best meets your needs.
Private Insurance: Medigap policies are sold by private insurance companies, but they must follow federal and state laws that regulate these plans. The coverage and benefits are the same regardless of which insurance company you choose.
Supplementing Original Medicare: Medigap supplements Original Medicare by covering some or all of the out-of-pocket costs that beneficiaries would otherwise have to pay for services covered by Original Medicare.
If you’re considering Medigap, it’s essential to compare plans, costs, and coverage options to find the one that aligns with your healthcare needs and budget.