medicare supplement (medigap)

Medicare Supplement plans, or Medigap, are insurance policies sold by private insurance companies that are available in all 50 states. Medicare supplement plans help you pay for out-of-pocket costs for Medicare Part A and Part B. These costs include deductibles, coinsurance, copayments, hospital costs after Medicare pays its share, skilled nursing facility costs, and more. Some Medicare Supplement insurance plans even include coverage for medical services while traveling outside the United States. 

Medicare Supplement insurance plans sprung into popularity shortly after Medicare became available.  Most policies cover the Part A hospital deductible and the 20% Part B expenses you have to pay after Medicare pays 80%.

A Medicare Supplement plan is the most predictable coverage you can purchase.  Once you choose a plan, you know precisely what is covered for Part A & B, and therefore, what you will be out of pocket for your medical expenses.  

It is important to note that Medigap plans are regulated by Medicare and are accepted by any doctor or hospital that accepts Medicare.  The service provider bills Medicare, which pays it's percentage, and then Medicare instructs you Medigap carrier what to pay and to whom.  Plans do not include Part D (prescription drug plans or "PDP"), so you will want to add a stand alone PDP.