Medicare Supplement Insurance Programs

Medicare recipients with original Medicare Parts A and B--Hospital and Medical Insurance--must pay deductibles, co-insurances and co-pays. Beneficiaries can purchase one of 10 supplemental Medicare insurance policies--Medigap--that fill Medicare's coverage gaps. Medicare regulates the coverage that private companies must provide in each type of Medigap policy. Recipients pay the premiums, which vary between policies, insurance companies and different areas of the U.S.

Plans A and B

• Any insurance company selling Medigap policies must offer the low-cost Plan A. Plan A pays the daily hospital co-insurance for stays in excess of 60 days and the co-insurance and co-pays for Medicare Part B services, hospice and preventative care, as well as the blood deductible. Plan A does not cover the co-pay for stays beyond 20 days in nursing homes, the $1,100 hospital admission deductible, the $155 Medicare Part B deductible, Part B excess charges or co-insurance on emergency care outside the U.S. Plan B differs from A in that it adds coverage of the $1,100 Part A deductible.

C, F, G

• Plans C and F are the only plans covering the annual Part B deductible, $155 in 2010. Medigap insurance companies must offer either Plan C or F if they offer at least two other plans. Both plans cover all Part A and Part B deductibles, co-insurances and co-pays including co-insurance for skilled nursing facilities, the blood deductible and emergency care outside the U.S. Plan F is the "high deductible" plan--beneficiaries must pay the first $2,000 in medical charges before Plan F pays. Plans F and G are the only Medigap plans that pay excess Part B charges by physicians. However, Plan G differs from F in that it does not cover the annual Part B deductible.

Plan D

• Plan D covers all Medicare deductibles, co-pays and co-insurances except for the annual Part B deductible, $155 in 2010, or any excess charges for Part B services. The policy also covers the blood deductibles and deductibles for emergency care outside the U.S.

Plans K-L

• Plans K and L cover 100 percent of Medicare Part A's coinsurance for hospital stays up to 365 days. Both cover 100 percent of the co-insurance for Part B preventative care. However, Plan K covers only 50 percent and Plan L 75 percent of other Part A deductible and Part B deductibles, co-insurances and co-pays. However, neither plan pays the annual Part B deductible or excess charges by Part B providers. Neither provides additional coverage for emergency care outside the U.S. The plans have maximum out-of-pocket limits--$4,620 for Plan K and $2,310 for Plan L in 2010. Medicare designed these plans to have lower premiums for reduced coverage.

Plans M-N

• Plans M and N cover 100 percent of Medicare Part A deductibles and co-insurances including those for skilled nursing facilities with one exception--Plan M covers only 50 percent of the Part A inpatient deductible, $1,100 for 2010. Both plans cover Part B's 20 percent co-insurance, including the co-insurance for preventative care, as well as the blood deductible. Both plans provide additional foreign travel coverage.However, only Plan M covers the co-pays under Part B for office visits or emergency clinic visits. Neither Plan pays the Part B deductible of $155 for 2010 or Part B excess charges.

Medigap Select Plans

• Some Medicare Medigap insurance plans offer select plans such as Plan A Select in addition to the regular Plan A. Select plans offer lower premiums if beneficiaries agree to use specific hospitals or providers.