We’re so glad you asked! Medicare Supplement plans, otherwise known as Medigap, are privately-held insurance plans that compensate for added expenses and hidden fees associated with Original Medicare. Even with covered healthcare services, beneficiaries are still responsible for a number of copayments and deductibles, which can easily add up. In addition, Medicare Part A and Part B also don’t cover certain benefits, such as routine vision and dental, prescription drugs, or overseas emergency health coverage (via eHealth). If all you have is Original Medicare, you’ll need to pay for these costs out-of-pocket. As a result, many people with Medicare enroll in two types of plans to cover these gaps in coverage. One is Medicare Advantage, and the other is Medicare Supplement.
Medigap plans only provides coverage for individuals who hold Medicare Part A and Medicare Part B coverage.
Medicare pays for your healthcare bills primarily, while the Medigap plan simply covers certain cost-sharing expenses required by Medicare, such as copayments or deductibles.
In addition, Medigap insurance plans may help with other costs that Original Medicare doesn’t cover, such as Medicare Part B excess charges or emergency medical coverage when you’re traveling outside of the country. Keep in mind that Medicare Supplement insurance plans can only be used to pay for Original Medicare costs; they can’t be used with Medicare Advantage plans.
Some popular Medigap plans come from AARP where enrollment includes a membership. Other popular carriers include Humana, Aetna and United American.
There are 10 Medigap insurance plans available in most states, and each plan type is designed by a different letter (for example, Plan H). Coverage is standardized across each plan letter, which means you’ll get the same basic benefits for Medicare Supplement coverage within the same letter category, no matter which insurance company you purchase from. However, even if basic benefits are the same across plans of the same letter category, premium costs may vary by insurance company and location. If you live in Massachusetts, Minnesota, or Wisconsin, keep in mind that these three states standardize their Medigap plans differently from the rest of the country.
| Plan A | Plan B | Plan C | Plan D | Plan F | Plan G | Plan K | Plan L | Plan M | Plan N | |
| Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Part B coinsurance or copayment | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes*** |
| Blood (first 3 pints) | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Part A hospice care coinsurance or copayment | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Skilled nursing facility care coinsurance | No | No | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Part A deductible | No | Yes | Yes | Yes | Yes | Yes | 50% | 75% | 50% | Yes |
| Part B deductible | No | No | Yes | No | Yes | No | No | No | No | No |
| Part B excess charge | No | No | No | No | Yes | Yes | No | No | No | No |
| Foreign travel exchange (up to plan limits) | No | No | 80% | 80% | 80% | 80% | No | No | 80% | 80% |
| Out-of-pocket limit** | N/A | N/A | N/A | N/A | N/A | N/A | $5,880 in 2020 ($6,220 in 2021) | $2,940 in 2020 ($3,110 in 2021) | N/A | N/A |
Via Medicare.gov
To see if you qualify for Medicare Supplement plans, click here. If you want to know when you can enroll, check out our other article on 2021 Open Enrollment.