What's the difference between Medigap and Medicare Supplements?

Some Medicare Supplement Insurance or Medigap policies also cover services that Original Medicare doesn't cover, like medical coverage when you travel outside the U.S.

If you have Original Medicare and you buy a Medigap policy, here's what happens: Medicare will pay its share of the Medicare-approved amount for covered health care costs, and then your Medigap insurance company will pay its share. Here are a few key points about Medigap Supplement Insurance plans:

1. Standardized plans: Medigap plans are standardized, meaning that each plan letter (such as Plan A, Plan B, Plan C, etc.) offers the same basic plan benefits, regardless of the insurance company offering the plan. However, the cost and additional benefits of the different carrier plans can vary among insurance companies.
2. Coverage options: Medigap plans offer different levels of coverage, with each plan providing a specific set of benefits. The standardized plans are labeled with the letters A, B, D, G, K, L, M, and N. Each plan letter offers a different combination of coverage, allowing beneficiaries to choose the plan that best meets their healthcare needs.
3. Use only with Original Medicare: To enroll in a Medigap plan, you must have Original Medicare (Parts A and B) in place in the Social Security system. Medigap plans do not work with Medicare Advantage Part C Plans. It is illegal for anyone to sell a Medigap Supplement to someone who continues to have Medicare Advantage Part C.
4. Premiums and costs: Medigap plans have monthly premiums that are paid in addition to any separate premiums for Original Medicare Part B. The cost of Medigap Supplement premiums can vary among plans and insurance companies. Beneficiaries are still responsible for paying their Medicare Part B premium along with any Medigap plan premiums, coinsurance, co-pays, and/or deductibles.
5. Some Medigap policies also cover services that Original Medicare doesn't cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, here's what happens: Medicare will pay its share of the Medicare-approved amount for covered health care costs, and then the beneficiary's private Medigap insurance company will pay its share.

Note: Medigap plans sold to people new to Medicare can no longer cover the Part B deductible. Because of this, Plans C and F are no longer available to people new to Medicare on or after January 1, 2020. However, if you were eligible for Medicare before January 1, 2020, but have not yet enrolled, you may be able to buy one of these plans that covers the Part B deductible (Plan C or F). If you already have or were covered by Plan C or F (or the Plan F high-deductible version) before January 1, 2020, you can keep your plan.