What Is A Medigap Policy? 
A medigap policy is also known as a Medicare Supplement policy . These policies are issued by a number of insurance companies in response to the out of pocket expenses that are not covered by Medicare , part A and Part B . A medigap policy is almost necessary for all Medicare participants . There can be massive out-of-pocket expenses in Medicare and the money that could be provided by the plan far outweigh the cost of the plan . These plans were developed by private companies . In response to the wide variety of policies developed the federal government decided to regulate these policies in the 1980s . The desire was to provide uniformity of benefits . There are ten different medigap policies available . They are referenced by letters A , B , C , D , F , G , K , L , M and N. Although these plans can change from time to time they have maintained these designations . Companies are not required to identify their policy by these letters and will often introduce stylized names such as Senior Select Medigap policy . It is most important to understand that all of the plans must contain core benefits . As they add additional benefits they must fall into one of the letter categories . This helps to compare plans and to insure that your needs are properly covered . You can enroll in a medigap policy during certain periods . During those periods the policy is guaranteed to be issued without medical underwriting . If the policy is desired after the set period medical underwriting can be required and the premium can be altered . The open enrollment period begins on the first day of the month in which you reach age 65 or older and enroll in Medicare Part B . This enrollment period continues for six months . People who are disenrolling from Medicare Advantage can receive a guaranteed issued medigap policy for 12 months when they enroll in traditional Medicare . There are other circumstances under which a person would be eligible for a Medigap policy without providing evidence of insurance . There are five core benefits contained in every medigap plan . The first is that the plan will pay the Medicare Part A copayments for days 61-90 . These copayments were $ 289 per day of hospitalization in 2012 . Another core benefit is Medicare Part A lifetime reserve copayments for days 91-150 . These copayments are $ 578 per day in 2012 . Another core benefit is up to 365 additional days of hospital stay beyond Medicare coverage . The medigap policies also provide cover the Medicare Part B coinsurance . This doesnt apply to preventive services , and the first three pints of blood if needed . These core benefits comprise an A plan . Subsequent plans offer increased benefits which include skilled nursing facility care copayments for days 21-100 . That cost was $ 144.50 in 2012 . The plan can provide for the Medicare Part A hospital deductible . That amount was $ 1184 in 2013 . The plan can provide the annual Medicare Part B deductible which was $ 147 in 2013 . Some plans include coverage for the Medicare Part B excess charges . Several plans include foreign travel emergency coverage . Every plan is priced by the insurance company . Sometimes the company offers the plan based upon the community . In other cases the pricing is determined by the age at which the plan is initiated . In other cases the plan is based on attained age and can increase as the policyholder ages . The core benefits can save you a great deal of money . Selecting the additional benefits is probably best done with a counsellor that you trust . 