What is a Medigap/Supplement Plan?

In One Sentence

Medigap plans or “Supplements” are standardized insurance plans offered by private companies to pay for some or all of the cost sharing in Original Medicare Parts A and B.

The Basics

Medigap plans are insurance policies which cover the costs that Parts A and B pass onto Medicare members. Each Supplement goes by its own letter of the alphabet (e.g. the G Plan). All plans of a given letter offer the same benefits regardless of the private insurer that sells them. Most Medicare members pair Medigap plans with stand-alone drug coverage through Part D. Supplements aren’t made to cover services that Original Medicare doesn’t insure, like prescription drug coverage or dental care. Unless an individual is new to Medicare or leaving employer coverage, he or she typically has to answer health questions to enroll in a Supplement. Insurers can charge more to cover those with certain medical conditions or deny them coverage outright.   

Check out Pelorus advisor Josh Sprague’s introduction to the different parts of Medicare by clicking the image below or read our "Deep Dive" on Medigap/Supplement Plans.