Medigap is private insurance that helps pay some of the costs left after Original Medicare pays its share.
What it means
Medigap is also called Medicare Supplement Insurance. It can help with costs such as copayments, coinsurance, and deductibles, depending on the plan.
You generally need Original Medicare Part A and Part B to buy it. Medigap does not work with Medicare Advantage.
A simple example
You receive covered medical care. Original Medicare pays its approved share, but part of the bill is still yours. A Medigap policy may pay some or all of that remaining amount, depending on the plan letter and the type of cost.
Medigap does not replace Medicare, and it does not work with Medicare Advantage. You keep Part A and Part B and pay a separate premium for the Medigap policy. Plans with the same letter generally provide the same basic benefits, but insurers can charge different prices. The comparison is often about premium, pricing method, service, and future increases—not different medical benefits within the same plan letter.
What people often miss
Plans with the same letter generally have the same basic benefits, but prices can differ by company and location.
The time when you first become eligible can affect your choices and whether health questions may be used later.
Three questions worth asking
- Which plan letter am I comparing?
- How is the premium priced now and later?
- Am I in a protected enrollment period?
Checked against primary sources
This explanation was checked against the sources below. Rules and limits can change, so check the source before making a decision.
Look up the next term in seconds.
The full glossary gives you the meaning and why it matters without making you read a whole article.
Search the money glossary →