Medicare supplement (Medigap) insurance is private health insurance designed to supplement Medicare. It offers coverage, at varying levels, for the significant out-of-pocket costs that are not covered by Medicare, such as deductibles, coinsurance, and copayments. Medigap coverage allows seniors and younger Medicare enrollees with disabilities – many of whom are on fixed incomes – to budget for medical costs and avoid the confusion and inconvenience of handling complex medical bills.
Medigap plans are used by over 11 million seniors and other Medicare beneficiaries, offering them a sense of security about both the predictable and unexpected costs associated with medical care. Analyses of federal data show that Medigap is a particularly important coverage option for low-income and rural seniors. Surveys consistently find that Medigap beneficiaries are highly satisfied with their Medigap coverage.