Medigap

Medigap or Medicare Supplemental insurance plans are designed to limit the out-of-pocket costs associated with Original Medicare by covering some or all of the copayments, coinsurance, and deductibles associated with Medicare Parts A and B. Medicare will have primary responsibility for paying a claim, but the Medigap plan usually has a crossover agreement with Medicare that allows the Medigap policy to automatically pay second. There are currently ten different standardized Medigap plans, each offering different levels of coverage and different cost structures. Prior to June 1, 2010, there were 14 different plans available, labeled by letters A through N. Four plans (E, H, I and J) are no longer being sold, but are still active for those who had previously purchased them and continue to pay premiums. Not all plans are available in all states and some states may offer additional standardized plans. Massachusetts, Minnesota, and Wisconsin do not offer the aforementioned lettered plans, but offer different standardized plans. Each Medigap plan pays for a particular set of benefits. Plan A offers the fewest benefits and is usually the least expensive. Plans that offer more benefits are generally more expensive. Plan F is the most comprehensive and tends to be the most expensive, although there is also a high deductible version of that plan which helps lower premium costs.