Medicare Supplement plans, sometimes referred to as Medigap plans, coordinate with Original Medicare Part A and Part B to pay out of pocket charges left after Medicare has paid its portion. These charges include the 20% coinsurance and deductibles that can really add up. You must first enroll in Medicare Parts A and Part B to meet the requirements for a Medicare Supplement plan.
Private insurance companies offer Medicare Supplement Plans in your state.
Note: Medicare Supplement plan is used to "supplement" original medicare. You cannot purchase Medicare Supplement with Medicare Advantage (MA) plans.
A key benefit of Medicare Supplement Plans is improved budgeting and minimizing your risk of unexpected health care costs. Original Medicare covers a lot, but can leave significant costs for you to cover "out of pocket" as well.
Under original medicare, (PartA) hospital costs can get high very fast -- even when you are only paying 20 percent of the total cost. Medicare Part A also requires a per "benefit period" deductible (currently $1,364). This is not an annual deductible. You can have multiple benefit periods (separate deductible amount each) within a calendar year.
Even without a hospitalization event, the 20 percent co-insurance and co-pays for your regular (Medicare Part B) doctors and health care services can add up.
A Medicare Supplement Plan can easily pay for itself.
The reference information shown on this page can also be found at www.medicare.gov.