Medicare Supplement insurance, also known as Medigap, is a private insurance policy designed to complement Original Medicare (Part A and Part B). Medigap plans are specifically structured to help cover the “gaps” in Medicare coverage, such as deductibles, copayments, and coinsurance, which can result in substantial out-of-pocket costs for beneficiaries. A Medicare Supplement policy does not cover prescriptions, dentist visits, eyewear, or hearing aids.
Here are key points to understand about Medicare Supplements:
Medigap is private insurance that fills the gaps in Medicare, like deductibles, copayments, and coinsurance. There are standardized plans labeled with letters offering different benefits. Unlike Medicare Advantage, there are no network restrictions. Monthly premiums are higher, but it often results in lower out-of-pocket costs. There are guaranteed issue rights and enrollment periods, where they cannot charge more due to pre-existing conditions.