Medicare Supplement Insurance or Medigap Plans come in and fill the "gaps" or what Original Medicare (Parts A and B) don't cover.
Original Medicare is set up through a basic 80/20 co-pay structure. For all of the services covered under Medicare, Medicare pays 80 percent while you pay 20 percent. While there are certain deductibles and exceptions to the rule, this is the basic setup. Medicare Supplements are additional insurance that comes in to pay parts or all of the 20 percent that Original Medicare doesn't pay.
As you'll see in the chart below, the coverage of a Medicare Supplement depends on the plan that you choose. The most comprehensive and therefor most popular plan is Plan F. Plan F is being phased out by 2020 in favor of Plan G, but as of now, all plans listed are available. While Medicare Supplements are provided by private insurance companies, their benefits by plan are mandated. This means a Plan F with Insurance Company "ABC" is identical to Plan F with Insurance Company "XYZ." This is what makes it so important to shop around when looking for a Medicare Supplement provider, as the difference in premiums between two companies can be substantial for the same plan.
Novel Insurance partners with dozens of Medicare Supplement carriers in the state to ensure that we can offer our clients that best value no matter which plan they choose.