What are Medi-Gap or Medicare Supplement Plans?

MediGap policies are standardized by law — meaning the benefits of each are the same, regardless of which private company sells it. However, beware that different companies charge widely different premiums, so it pays to shop around.

MediGap or (Medicare Supplemental Insurance) refers to plans sold to supplement Medicare in the United States. These plans may be purchased through private companies to pay health care costs not covered by Original Medicare, such as co-payments, co-insurance, deductibles, and health care if you travel outside the U.S.

MediGap policies do not cover long-term care, dental care, vision care, hearing aids, eyeglasses, and private-duty nursing. Most plans do not cover prescription drugs. You’ll have to purchase a separate plan to cover these ancillary types of plans.

MediGap can be used only by people enrolled in traditional Medicare. (You may not have both a Medicare Supplement and Medicare Advantage Plan.) Medicare Supplement plans cover the 20 percent co-insurance for Part B that you’d otherwise pay for physician visits and other outpatient services. In addition, Medi-Gap plans cover the Part A hospital deductible ($1,600 in 2023 for each hospital benefit period) and subsequent co-payments after 60 days of hospital stay. If you travel abroad, it will cover 80% for medical emergencies outside the U.S.