Why Were Medigap Plans Implemented? 
Medigap policies came into being because Medicare does n't cover everything . And what it does cover , it does so with deductibles and co-pays . The deductible for a hospital pay is over $ 1200/stay . The co-pays for physicians services and tests are about 20 % . Medigap plans came into being to protect the consumer from high unexpected out-of-pocket costs . 