Similar to traditional health insurance policies, Original Medicare requires payment of deductibles and coinsurance for most covered services. In addition, there is no annual cap for out-of-pocket costs in these areas.

Medicare Supplement plans, also known as Medigap, are issued by private insurance carriers. They are designed to cover unpredictable deductibles and coinsurance in exchange for a fixed monthly premium. Medicare Supplement plan policies are standardized by letter name (such as Plan F, Plan G, and Plan N) and they may require underwriting if you don’t qualify for Guaranteed Acceptance. It is important to remember that Medicare Supplement plans always pay secondary to Original Medicare, so you must be enrolled in both Medicare Parts A and B, and continue paying any applicable premiums to qualify.

Medicare Supplement plans must cover all Medicare covered services, so there will never be a denial of their secondary coverage for a Medicare approved benefit. Due to this plan design, they are a good fit for beneficiaries who desire the flexibility to see any Medicare accepting provider in the U.S.