Medicare was never designed to completely cover all your medical costs. Unfortunately, the cost of items not covered by Medicare has grown to the point where it's often more than an individual can afford to pay out of pocket. Costs not covered by Medicare include the Part A deductible, hospital and medical care coinsurance, and much more. A Medigap (also called “Medicare Supplement Insurance”) policy is designed to supplement Original Medicare and can help with these costs, keeping down your out-of-pocket expenses.
Every Medigap policy must follow Federal and State laws designed to protect you and it must be clearly identified as “Medicare Supplement Insurance”. Medigap insurance companies can only sell you a standardized Medigap policy identified by letters A through L. Each standardized Medigap policy must provide the same benefits no matter which insurance company sells it. Premium is usually the only difference between Medigap policies sold by different insurance companies.