Supplements are sometimes called Medigap plans. They do not, however, pay for everything. Beneficiaries may also need to pay for a lot of out-of-pocket costs for health services that are covered. These costs may include deductibles and co-payments. So if you just have Part A and Part B, you may still have to pay a lot of your medical costs. And it can make it difficult to budget for health care. These uncovered services and out of pocket costs are called the “gap”, and that is why the supplements are called Medigap plans.


To control these extra costs, many people choose to purchase a Medigap plan. This is a private health insurance plan from a private health insurance company. Medicare supplement plan members pay a premium for this health insurance. The supplement covers some, or all, of the costs that the original plan does not cover. Of course, the covered person still uses Part A and Part B to pay for the basics. Most beneficiaries also pay a Plan B premium, though that may deducted from a social security check.


As you can see, supplements work with the original Medicare supplement Plans 2019. Get a quote at are two distinct premiums to pay. One goes to Part B, and the other goes to the private insurer. How Is That Different Than Advantage Plans? MA plans are also marketed by private insurance companies. But they do not work with Part A and Part B the same way. Instead of having the original plan pick up it’s part of the tab, and then having a supplement provide extra coverage, the MA plan will be the sole policy. The Center for Medicaid and Medicare regulates these plans, and they must provide benefits equal to, or better than, the original plan.


Members still have a Plan B premium to account for. Some MA plans actually rebate part of this premium, some charge no additional premium, and some require an extra premium. This is because the tax funds that would pay for Part A and Part B actually pay the private insurer for coverage. If the funds are sufficient to pay for the plan, no additional premium is required. In some cases, the amount of funding is enough to rebate all, or part, of the Part B premium. In other cases, insurers require an additional premium. Even with an MA plan, members may still have out of pocket costs as well.