Medicare Supplement (Medigap)

Medigap, or Medicare Supplement insurance, is private coverage that pays some of the out-of-pocket costs Original Medicare doesn't — such as copays, coinsurance, and deductibles. Plans are standardized and labeled by letter (Plan G, Plan N, and so on).

Medigap works alongside Original Medicare, not with a Medicare Advantage plan, and it doesn't include drug coverage — a client needs a separate Part D plan for that. Because plans of the same letter are standardized, agents compete largely on price and carrier service.

Related: MA, Part D, OEP

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