Medicare Supplement
Medicare Supplement or Medigap policies, are policies sold by private insurance companies to Medicare beneficiaries like you. They are overseen by state insurance departments. Plans are standardized and prices can vary based on where you live.
Medicare Supplement/Medigap policies are designed to pay your costs related to Original Medicare. Depending on the plan you choose, they could pay the Part A hospital deductible, the Part B deductible, and the 20% coinsurance that you are responsible for, as well as other out-of-pocket costs. These plans “supplement” or fill the “gaps” in Original Medicare.
Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your Medigap policy as long as you pay the premium.
Medigap policies sold after January 1, 2006 aren’t allowed to include prescription drug coverage. If you want prescription drug coverage, you can join a Medicare Prescription Drug Plan (Part D).