What are Medigap/Medicare Supplement Plans
A Medigap policy is an insurance policy that helps supplement Original Medicare and is sold by private insurance companies. A Medigap policy can help pay for some or all of the remaining health care costs that Original Medicare doesn’t pay for at 100%. If a beneficiary had Original Medicare and a Medigap Policy, Medicare is primary and will pay its share of the Medicare-approved amount for covered health care costs. The Medigap policy is secondary and will pay a portion or all of the remaining cost that Original Medicare does not pick up at 100%. All Medigap policies must follow federal and state laws designed to protect the Medicare beneficiary, and policies must be clearly defined as “Medicare Supplement Insurance.” Each standardized Medigap policy must offer the same basic benefits, no matter which insurance company sells it. Cost and potential underwriting guidelines are the only difference between Medigap policies with the same letter sold by different insurance companies.