What is Medigap?

Medicare Supplements, also known as Medigap plans, were designed to fill in gaps in coverage for Original Medicare policies, such as Part A (for inpatient and hospital expenses) and Part B (for outpatient medical expenses). The two parts of the plan have monthly cost-sharing components such as coinsurance, copayments, and deductibles.

Medigap plans save policyholders money by paying hospitals directly for cost-sharing expenses, so they don't have to request reimbursement from their insurance company. It should be noted, however, that each of the standard ten plans will cover a different amount of cost-sharing according to the circumstances. For more information about what is and is not covered under your Medigap policy, review your plan documents and speak with your insurance agent.

If you have a Medicare Advantage plan, Medigap is not available. Medigap works exclusively with Original Medicare Part A and Part B. If you already have Medicare Advantage, it's actually illegal for anyone to sell you Medigap unless you're switching back to Original Medicare.