Supplemental (Medigap) plans are also available to recipients of Original Medicare. These plans are offered by private companies and help to pay for the costs that Part A and Part B don’t cover, such as deductibles, coinsurance, and copayments. An example may be the 20% copay within Part B.
Since Part B does not have a maximum out-of-pocket, Medigap plans provide prudent protection for recipients of Original Medicare.
What’s in a name?
It is important to note the difference between “Plans” and “Parts”. Medicare uses the term “Plan” to refer to Medigap (i.e. Medicare Supplement policies) whereas the term “Part” refers to one of the four primary parts of Medicare: Part A, Part B, Part C, and Part D. For example, the terms Part B and Plan B refer to two separate things.
A further point of potential confusion is often that Part C, which is one of the four primary “Parts” of Medicare, has been branded as Medicare Advantage Plans.