Medigap is sold by private insurance companies to supplement Medicare Plan coverage and help pay some of the health care costs that Medicare Plan doesn’t.
These insurance companies sell “standardized” Medigap policies, each with specific benefits. There are 12 standardized policies to compare and choose (Medigap A through L).
While the benefits in any Medigap Plan A through L are the same for any insurance company, costs can vary. Each insurance company decides which Medigap policies it wants to sell and for how much. Additionally, some states (Massachusetts, Minnesota and Wisconsin) require Medigap insurance to provide additional coverage than what is defined in the standardized Medigap plans.
Generally, when you buy a Medigap policy you must have Medicare Part A and Part B. You will have to pay the monthly Medicare Part B premium. You will have to pay a premium to the Medigap insurance company in addition to your existing Medicare coverage.
Note: Medigap policies do not cover any health care costs for the policyholder’s spouse.