Plain version: Original Medicare leaves holes: deductibles, coinsurance and copayments. A Medicare supplement (Medigap) policy is private insurance that fills those holes. It works only alongside Original Medicare.
What Medigap is not:
It is not Medicare Advantage. Delivering Part A and Part B benefits through a private plan describes Medicare Advantage.
Medigap policies sold today do not include prescription drug coverage.
A Medigap policy cannot be used alongside Medicare Advantage to pay that plan's costs.
Standardized plans: Medigap policies are federally standardized and named by letter: A, B, C, D, F (including high deductible and innovative options), G, K, L, M and N. Plan A contains only the basic ("core") benefits, and the basic benefits of Plan A apply to all plans; each other letter adds extra benefits on top.
Core benefits (California policies effective on or after June 1, 2010):
- Part A coinsurance for hospital days 61–90 and for lifetime reserve days.
- 365 more lifetime hospital days.
- The first three pints of blood.
- Part B coinsurance after the Part B deductible.
- Hospice cost sharing.
The Part A inpatient deductible is NOT a core benefit; it is an additional benefit found in other plans.