Original Medicare covers 80% of healthcare services but Medicare beneficiaries may be responsible for the other 20% of the costs such as deductibles, copays, and coinsurance. Medicare Supplement plans are offered by private insurance companies and they help you pay for out-of-pocket expenses associated with Original Medicare. Medigap Plan B offers all the same benefits as Plan A, but it also includes coverage of the Part A deductible, which amounts to a significant cost.
There are 10 Medigap plans, and they are labeled from Plan A to Plan N in the states where they’re available. Even though insurance companies are not obligated to offer all existent Medigap policies, they must provide Plan A, Plan C, or Plan F. Since these are standardized plans, they must all provide the same basic benefits.