Understanding MedSup Policies
Original Medicare pays for many health care services and supplies, but not all. Medicare Supplement (MedSup) Insurance policies are sold by private companies and can help pay some of the health care costs that Original Medicare doesn’t cover, like copayments, coinsurance, and deductibles. They are also called Medigap policies.
Some MedSup policies also offer coverage for services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you buy a MedSup policy, Medicare will pay its share of the Medicare-approved amount for covered health care costs. Your MedSup policy then pays its share. All MedSup policies have a premium that’s additional to amounts you pay for Medicare Part A and Part B.
MedSup Policies are Standardized
Every Medicare Supplement policy must follow federal and state laws designed to protect you, and policies must be clearly identified as "Medicare Supplement Insurance." Insurance companies can sell you a "standardized" policy only, identified by letters. All policies offer the same basic benefits, but some offer additional benefits so you can choose the one that meets your needs.