Medigap is one name for Medicare Supplement Insurance, because it “fills the gaps” in Original Medicare. The three most important gaps in coverage are:

The Part A deductible of $1,316. This would be incurred in the case of hospital admission;

The Part B deductible of $183. Part B is for labs, doctors, E.R., ambulance, outpatient tests or surgery, and so on;

The 20% Part B coinsurance.

The last listed, the Part B coinsurance, leaves you with the biggest potential liability, since there is no cap on the expenses you pay 20% of.

Which Medicare Supplement Plan shall I get?

Choosing a Medigap Policy 2014_Medigap_Chart_Page_ 11

This table compares all the Medigap Plans available. The Plans are standardized by law, so there is no need to pay more for a Plan from one company over another.

How can I decide on which Plan to get?

After years of working with Medicare Supplements, I recommend these four plans:

Plan F pays everything after Medicare, and consequently is the most popular Medicare Supplement Plan in the country;

Plan G pays everything in the hospital, and everything outpatient except for the $183 annual Part B deductible;

Plan N costs about a third less, and pays everything in the hospital. It requires good bookkeeping as the providers will mail bills;

Plan Hi-F puts a cap on out-of-pocket payments that you pay. The annual cap is $2,200.

Run a quote on the above letters, and you will be able to narrow down the field to find the best Medigap Plan for your needs.