What Is Medicare Supplement (Medigap)?

Because Original Medicare does not pay for all health care services and supplies, a consumer can purchase what is referred to as a “Medicare Supplement (Medigap) policy.”  These policies are sold by private insurance companies and can help pay some of the health care costs (“gaps”) that Original Medicare does not cover, like copayments, coinsurance, and deductibles.  Some Medigap policies also offer coverage for 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, both plans will pay their share of Medicare-approved amounts for covered health care costs.  Medicare does not pay any of the costs for a Medigap policy.

Since insurance companies may charge different premiums for exactly the same Medigap coverage, to the extent you shop for a Medigap policy, be sure you are comparing the same Medigap policy (for example, compare Plan A from one company with Plan A from another company).

Note: In Massachusetts, Minnesota, and Wisconsin, Medigap policies are standardized in a different way.

In order to purchase a Medigap Policy you must have Part A and Part B.  You pay a monthly premium for your Medigap policy to the private insurer, and you pay your monthly Part B premium.  A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you must each buy separate policies.