Medicare Supplement Plans, a.k.a. MEDIGAP Plans, help to fill in the coverage gaps of Original Medicare. The term Original Medicare refers to Part A (Hospital) and Part B (Medical). Original Medicare covers roughly 80% of all approved Medicare charges. The remaining 20% is covered by Medicare Supplement plans.
Medicare Supplements have the following letters: A, B, C, D, F, G, K, L, M, N and high deductible F. All Medigap plans are “Standardized”, meaning that the coverage for each plan is exactly the same regardless of the company offering the plans. The only difference between Medigap plans is the price you pay and the customer service you receive. The most popular Medicare Supplement plans are F, G, and N.
Medicare Supplement Plan F is the most comprehensive Medigap plan covering all deductibles and copays, meaning you pay absolutely nothing out of pocket for anything that falls under Medicare Part A or Part B.
Medigap Plan G is the next most comprehensive with only one difference from the Plan F. Medicare Supplement Plan G requires you to pay the annual Medicare Part B deductible, which for 2016 is set at $166. After the deductible is met, the Medigap Plan G pays for all out of pocket Medicare expenses.
Medigap Plan N is the most affordable of the three most popular plans. The differences between the Plan N and Plan F is that Plan N requires you to pay up to a $20 copay at your primary care physician or specialist. Also, you must pay the Medicare Part B (Medical) deductible of $166. Lastly, you must pay 100% of all Medicare Part B excess charges. In the state of Pennsylvania, it is against the law for healthcare providers to charge a Part B excess charge because we are in a (MOM) law state. MOM stands for Medicare-Overage-Measure. However, most states can potentially charge you the Part B excess charge. The easy way to understand excess charges is that whatever dollar amount Medicare gives a healthcare provider for a particular service, the healthcare provider can charge you up to 15% of this amount as overage.
Centers for Medicare and Medicaid “Choosing and Medigap Policy: A Guide to Health Insurance for People with Medicare”Guide to Choosing a Medigap Policy