Medicare Part A and Part B typically covers about 80% of basic medical charges. Medigap insurance plans can help cover deductibles and coinsurance that Medicare does not. Considering the high cost of medical bills, especially hospital bills, it is important to have a supplemental insurance plan to help cover what Medicare does not.
Medicare, both Part A and Part B, have nine specific gaps in the coverage they offer. There are several categories to Medigap plans that help make up the difference in these coverage gaps.
Medigap Plan F
This supplemental plan is one of the most comprehensive Medigap plans at it covers all nine gaps in Medicare coverage. This plan can significantly reduce what you owe after medical claims are processed. Basically, you will only need to cover the insurance premiums and both Medicare and Medigap Plan F will pick up the remaining charges.
Medigap Plan G
In addition to covering the basics of all Medigap plans, Plan G also helps cover: The coinsurance associated with skilled nursing facilities, the deductible for Medicare Part A, leftover charges from Medicare Part B, and emergency travel outside the United States.
Medigap Plan N
This plan is similar to Medigap Plan G, but it uses a cost sharing system which helps keep the premiums low. Although Medigap Plan N may not cover as much as some of the other Medigap plans, it may be a better option for those looking for a supplemental insurance plan with low out-of-pocket expenses.
Medigap insurance plans are standardized. This means they must contain the same coverage for each plan letter no matter what insurance company is offering them. However, premiums for each plan can vary widely. This creates competition in the free market among insurance companies. Depending upon your health care needs and budget, it is important to research and select a supplemental plan that will meet your needs.