Medicare Supplement (Medigap)
Original Medicare (Parts A and B) doesn’t cover everything. It only covers a portion of your costs for covered services. And it doesn’t limit what you pay out-of-pocket for health care expenses each year.
To help fill these coverage gaps, many private insurance companies offer Medicare Supplement (Medigap) insurance policies that help pay for your health care costs. When you have a Medigap policy, Medicare continues to pay its share of the approved amount for covered services. Your Medigap policy then pays its share.
Most U.S. states offer 10 types of Medicare Supplement plans.
Medicare Part A co-insurance for inpatient hospital care
Medicare Part B co-insurance (usually 20 percent of the Medicare-approved amount)
First three pints of blood each year
Co-insurance or co-payments for Part A hospice care
Medicare Supplement plans C, F, and F high deductible are no longer available to purchase if you turned 65 on or after January 1, 2020. They may be unavailable to some people under age 65 as well.
Here are some important things to know about Medigap policies:
You must have Original Medicare (Parts A and B) to buy one.
They have a monthly premium that you pay to the insurance company.
You must also continue to pay your Medicare Part B premium.
They don’t include prescription drug coverage. You must purchase a Part D plan separately.
They generally don’t cover things like Long-Term Care, Vision, Dental, Hearing or Private-Duty Nursing.
They only cover one person — if you and your spouse want Medigap coverage, you’ll each need separate policies.
