The Best Medicare Medigap Insurance

Because Medicare does not pay all health insurance bills for seniors, additional coverage is provided by a number of insurance companies. Medigap plans are used to pay the deductibles and coinsurance requirements not covered by Medicare. A variety of plans are available, and the best Medicare Medigap insurance depends on a person's health and budget.

Standard Medigap Insurance Plans

• The standard Medigap insurance plans are the A and B plan. They both fully cover the 20 percent coverage gap of Medicare medical care, which is the most expensive gap in Medicare coverage. Both plans have some co-pays. The B plan does not cover the yearly deductible of $162 (2011) of Medicare part B. Plan A does not cover the part B deductible and does not cover the co-pay for hospital room and board charges. These plans are the best Medigap insurance for someone who wants as much coverage as possible but cannot afford a full coverage plan.

Full Coverage Medigap Insurance Plans

• Medigap plans C and F are considered full coverage Medigap health insurance. Plan C covers all co-pays not covered by Medicare. Plan F provides full coverage and also pays medical excess charges. Excess charges are doctor bills above what Medicare will pay and can be charged to a patient. Full coverage plans are the most expensive Medigap plans. They are best used by an individual with serious medical conditions who can afford their premiums.

Coinsurance Medigap Insurance Plans

• There are several Medigap plans that offer coverage through coinsurance. These plans are the K and L plan. They have the least expensive monthly premium of the Medigap plans. In exchange, the policyholder has more responsibility for medical bills. For example, an individual with a K plan is responsible for 50 percent of the cost of medical bills up to a maximum of $4,640 per year. After this maximum, the insurance company pays all bills for the year. Coinsurance Medigap plans are best for healthy individuals looking to save money on their health insurance.

Alternative to Medigap Insurance

• A Medicare Advantage plan is another option for someone looking for Medicare insurance. A Medicare Advantage plan is health insurance fully provided by a private company and supervised by Medicare. These plans tend to be less expensive than Medigap insurance. They function most similarly to the coinsurance Medigap plans, as the insured has more responsibility for health care bills. Medicare Advantage plans can offer extra benefits not covered by Medicare, such as dental, vision and prescription drug benefits. They are best considered by healthy individuals looking to save on premiums, and those who will use the extra dental and vision benefits.