First, a Medicare Supplement or Medigap plan is not a Medicare Advantage plan. Medicare Advantage plans provide a way to get all of your Medicare benefits (plus other things Medicare doesn’t cover). A Medigap plan supplements your Original Medicare benefits but doesn’t replace them.
The purpose of a Medigap plan is to help pay for out-of-pocket costs which Original Medicare doesn’t cover. For example, copayments, coinsurance and deductibles.
Medicare Supplement plans allow you to see any doctor who accepts Medicare. This means they agree to accept direct payment from Medicare and will not bill you more than the Medicare deductible and coinsurance.
Medicare Supplement plans may also offer a Select Plan, which offers additional cost savings. These plans will require you to use a in-network doctor.
The advantages of Medigap plans include:
Eight different Medigap plans are available (A, B, D, G, K, L, M and N) as of January 1, 2020. These plans are mostly standardized across the United States.
You can read a complete guide about choosing a Medicare Supplement (Medigap) plans here.
Most major insurance carriers offer Medigap plans. As an example, 58% of Medicare eligibles in Maricopa county are on Medigap plans.