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The original Medicare plan does not cover all health care services needed by the typical American. While it does pay for many expenses, you are responsible for the unpaid bills for the services that are not covered by Medicare.
This is where a Medigap insurance policy comes in handy. Available for sale by private insurance companies, a Medigap insurance policy can help absorb the expensive health care bills that you are responsible to pay.
The name Medigap derives from the fact that it pays the gap of unpaid costs not covered by the Original Medicare plan, such as co-payments, coinsurance and deductibles.
Each and every Medigap insurance policy is governed by Federal and state laws that must be followed. Each policy must be clearly identified as “Medicare Supplement Insurance.” Medigap insurance companies are further regulated and can sell you only a standardized Medigap policy. The plans vary by benefits and so you are able to choose the Medigap insurance policy that best meets your needs.
In addition, a good Medigap insurance plan to secure is a policy that also offers coverage for services that Original Medicare doesn't cover. Most folks may not be aware that medical care when you travel outside the U.S. is not provided with the Original Medicare plan, so this is an option you would certainly want in a Medigap policy.
One additional note; you are responsible for the premiums for the Medigap insurance policy and no part of these premiums is covered under any Medicare plan.