Filling The Medi-Gap

Most seniors choose to stay in traditional Medicare, where you can choose any doctors, hospitals, or other medical providers. To reduce your exposure to uncovered medical costs, you can buy a Medicare supplement policy, known as “Medigap.” (Note: The Federal Employees Health Benefits program effectively acts as a Medigap plan for those who continue to carry FEHB.)

In most states, only 10 standardized Medigap policies may be sold: A through J. All companies selling A policies must provide the same benefits, all B policies must resemble each other, and so on.

• Medigap A policies offer core benefits: co-insurance for hospital and medical bills as well as coverage for long hospital stays.

• Policies B through J offer various combinations of other benefits.

• Policy F, the most popular choice, starts with the core benefits and adds coverage for Medicare deductibles, skilled nursing care, excess medical charges, and foreign treatment.

You can expect to pay between $1,000 and $3,000 per year for a Medigap policy, depending on the state, the company, and the package of policy benefits. Medigap policies do not offer the comprehensive care that you’ll find with a Medicare HMO and they probably cost more. However, Medigap policies offer more choice of providers, which can be crucial.