Medigap, also known as Medicare Supplement Insurance, is sold by private insurance companies and helps pay certain out-of-pocket costs of Original Medicare, such as copayments, coinsurance, and deductibles. Medigap policies are standardized by the federal government and identified by lettered plans (for example, Plan G and Plan N), meaning the benefits for a specific plan letter are the same regardless of the insurance company that sells it. Premiums and available plan options may vary by insurer and location.

Medicare Advantage plans are an alternative to Original Medicare and may include drug coverage. Plan types include Health Maintenance Organizations (HMO), and Preferred Provider Organizations (PPO). Utilizing a Medicare Advantage plan’s provider network may reduce your out-of-pocket costs.

Medicare Part B (Medical Insurance) helps cover medically necessary and certain preventive services, generally on an outpatient basis. Medically necessary means services or supplies needed to diagnose or treat a medical condition, while preventive means services to help prevent illness or detect health problems at an early stage. Most people pay a monthly Part B premium, and after the Part B deductible is met, beneficiaries typically pay 20% of the Medicare-approved amount for covered services. Together, Medicare Part A and Part B are known as Original Medicare.