The Differences Between a Medicare Supplement & a Medigap Plan

A Medicare supplement and a Medigap plan are the same thing. Medigap is the official name of Medicare supplement insurance. You must have Medicare Part A and Part B to buy a Medigap policy.

Definition

• Medicare has deductibles, copayments, coinsurance, and limits on how much Medicare will pay. These gaps in coverage can be substantial in terms of dollars, and Medicare supplement insurance (Medigap) offers you a way to buy additional insurance to cover the gaps.

Standardized Plans

• Medicare requires that Medigap insurance companies sell only standardized Medicare supplement plans. The letters A through N are used to designate these plans. Each plan has specific required benefits. Usually, the only difference between plans with the same letter is cost. However, note that the Medigap rules are different in Massachusetts, Minnesota and Wisconsin than in other states.

Exclusions

• Medigap policies do not cover dental care, hearing aids, long-term care, prescription drugs, private-duty nursing, vision care and eyeglasses. For prescription drug coverage, you have to buy a Medicare Prescription Drug Plan (Medicare Part D).

Considerations

• Medicare supplements (Medigap) are different from Medicare Advantage Plans (Medicare Part C). Private insurance companies sell Medicare Advantage Plans that offer you an alternative to having Medicare Parts A and B. Medicare Advantage Plans must provide all the services of Original Medicare Part A and Part B, except hospice care.