Medigap Policies

A Medigap policy (supplemental insurance) is health insurance sold by private insurance companies that fill the “gaps” in your Original Medicare Plan coverage. Medigap policies are designed to help pay some of the health care costs that the Original Medicare Plan doesn’t cover. If you are in the Original Medicare Plan and have a Medigap policy, then Medicare and your Medigap policy will pay both their shares of your covered health care costs.

Insurance companies can only sell you a “standardized” Medigap policy. These Medigap policies must have very specific benefits so that you can compare the different policies easily.

You can choose up to 12 different standardized Medigap policies (Medigap Plans A through L). Medigap A is the most basic "core" policy. As you move through the alphabet, the plans add more coverage. Medigap policies must follow Federal and State laws. These laws were created to protect you. A Medigap policy must be clearly identified on the cover as “Medicare Supplement Insurance.” Each plan, A through L, has a different set of basic and extra benefits.

It is important for you to compare Medigap policies because the costs can vary greatly. The benefits in any Medigap Plan A through L are the same for any insurance company. Each insurance company decides which Medigap policies it wants to sell.

In general, when you buy a Medigap policy you must have Medicare Part A and Part B. You will have to pay the monthly Medicare Part B premium. In addition to the Part B premium, you will have to pay a premium to the Medigap insurance company.

Your Medigap policy won't cover any health care costs for your spouse, so must each buy separate Medigap policies.

If you have a Medicare Advantage Plan (Medicare Part C), any Medigap policy you have won't pay out. So if you decide to move into a Medicare Advantage Plan and you already have a Medigap policy, make sure that you drop the Medigap policy.