How Medicare Supplemental Insurance (Medigap) Can Help You
Medicare does not cover every medical service you may need, and it does not pay 100 percent of the cost for most services and supplies that are covered under Medicare.
Medicare is divided into parts. Part A deals with home health care, hospice, hospital and skilled nursing care. Part B handles doctor services, and other medical services and supplies that are not covered under Part A.
After you have met the annual deductible, Part B will pay 80 percent of the “reasonable charge” for covered services, and you are responsible for the remaining 20 percent as “coinsurance.”
How Do Medigap Plans Fill the Gaps in Medicare Coverage?
Supplemental Insurance, or Medigap, is available from private insurers to help pay for services that Medicare does not cover. That includes coinsurance, copayments and deductibles that you would otherwise have to pay yourself.
Medigap plans may even provide more benefits than Medicare, such as medical care when you travel outside of the United States. Typically, you must be 65 or older and enrolled in Medicare Part A and B to buy a Medigap Plan.
If you have Medicare and a Medigap Plan, Medicare first pays its share of Medicare-approved amounts for covered healthcare costs, and then your Medigap Plan will pay its share.