If you are trying to figure out the difference between Medigap and Medicare Supplemental Plans you are in for a surprise: they are the same. Medigap and Supplemental Plans are two different names for the same coverage. This article will help you understand why some people refer to them by these different names, along with reasons you may want to sign up for a supplemental plan when given the chance.
1. Medigap Plans
When someone talks about a Medigap plan, they are talking about the gap between what original Medicare pays and the rest of your medical needs. Original Medicare pays 80% of your healthcare costs. However, if you are someone who has a lot of medical needs, the remaining 20% can be extremely expensive. Imagine needing a $40,000 surgery to repair an artery in your heart. While original Medicare will cover $32,000 of this operation, you could still be stuck with paying $8,000 out of pocket. That is quite a gap to have to fill with your own money. Fortunately, if you have a supplemental or Medigap plan, you will be covered for this additional amount, and that gap will be filled.
2. Supplemental Plans
When talking about Medigap plans, some people call them supplemental plans. This is because they offer additional coverage that may be needed in certain situations. For example, original Medicare does not offer any foreign coverage, while most supplemental plans include this coverage. They also offer additional skilled nursing facility benefits, which could seriously come in handy if you have any serious injuries that need additional support. Most supplemental (Medigap) plans also cover any deductibles or co-insurances that you may need to pay to get coverage. For people with a fixed income, this can mean the difference between going into debt or staying afloat. Supplemental plans are just that, additional benefits that you may need to have your healthcare needs covered.
In conclusion, Medigap and supplemental plans are the same. Understanding why people call them the different names can give you a better idea of what benefits you are going to receive from signing up for one. Since supplemental plans are a pay upfront monthly cost, it gives people the comfort of mind in knowing that no matter what happens each month, they will be completely covered. Talk to a few insurance agencies around you for more details on the Medicare supplemental plans they offer.