What Is Medigap?

Medigap is a health insurance policy, sold by private insurance companies, to fill the "gaps" in the original Medicare plan. Medigap policies help people pay some of the health care costs that the original Medicare plan doesn't cover. For those in the original Medicare plan, who have a Medigap policy, Medicare will pay its share, and then the Medigap policy will pay its share of the insured's health care costs.

Currently, there are ten standardized Medigap plans called "A" through "J." Medigap policies must follow federal and state laws. The front of a Medigap policy must clearly identify it as "Medicare Supplement Insurance." Each plan, A through J, has a different set of benefits. Plan A covers only the basic (core) benefits. These basic benefits are included in all the Medicare plans (A through J). Medigap Plans B through J offer extra benefits. Plan J offers the most benefits.

Insurance companies can only sell insureds one of the 10 standardized Medigap policies. Medigap policies are standardized so people can compare them easily. Two of the standardized Medigap policies may have a high deductible option. In addition, any standardized Medigap policy may be sold as a Medicare SELECT policy. No matter where the insured lives (except for Massachusetts, Minnesota, and Wisconsin), Medigap policies must offer the same benefits within Medigap plans (A through J).

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