What is Medigap coverage used for if Medicare already pays most of your bills? The answer might surprise you—because those “small gaps” can lead to big expenses. In this article, we’ll show you exactly what Medigap can protect you from, and how to know if it’s the right move.

What Is Medigap?

Medigap, also known as Medicare Supplement Insurance, is private health insurance that helps pay for the out-of-pocket costs not covered by Original Medicare (Parts A and B). These include copayments, coinsurance, and deductibles—costs that can add up fast, especially if you have frequent doctor visits or hospital stays.

There are 10 standardized Medigap plans (A, B, C, D, F, G, K, L, M, and N), each offering a different combination of benefits. NOTE: The majority of all people only purchase 3 plans- G, N and High Deductible G. These plans are regulated by federal and state governments, so the benefits for each plan letter are the same no matter which insurance company you buy it from.

👉 Need more info? Read our complete guide: Medigap for Beginners.

What Is Medigap Coverage Used For?

Medigap coverage is used to fill the “gaps” in Medicare. Even if you have Medicare Parts A and B, you’re still responsible for out-of-pocket costs like the Part A hospital deductible and the 20% coinsurance under Part B. That’s where Medigap steps in.

For example, if you need surgery and your Part B covers 80%, you’d still owe 20% of the cost. This could be hundreds or thousands of dollars. With the right Medigap plan, that remaining 20% may be covered, easing your financial burden.

Keep in mind: If Medicare doesn’t cover a service, Medigap usually won’t either—except with emergency care while traveling abroad. But, when Medicare does pay for Medical bills, they often don’t pay for all of it. that’s where Medigap steps in to help for remaining amount of the bill. It’s a smart way to protect your savings from surprise medical bills and keep your costs more predictable.

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One by One: What Medigap Typically Covers

Wondering what exactly Medigap helps pay for? Let’s break it down so you know where it really makes a difference. These are some of the most common costs that Medigap helps cover:

  • Hospital bills under Part A: Medigap plans help cover the Part A deductible (which is $1,676) and many of the coinsurance costs for hospital stays that Original Medicare doesn’t pay in full.
  • Doctor visits and outpatient care: Medigap covers Part B coinsurance and copays for doctor visits and outpatient services. Older plans like Plan F also cover the Part B deductible. But that plan isn’t available if you joined Medicare after January 1, 2020.
  • Blood transfusions: Medicare doesn’t cover the first three pints of blood per year. However, most Medigap plans will pay for them.
  • Skilled nursing facility care: Medicare only partially covers this benefit. Medigap pays the daily coinsurance for skilled nursing care or rehab — up to 100 days.
  • Hospice care: Medigap helps with the coinsurance or copayment costs for hospice services covered under Medicare Part A.
  • Foreign emergency coverage: Some Medigap plans offer emergency medical coverage overseas, typically covering 80% of eligible costs up to $50,000.

How Does Medigap Work with Medicare Parts A and B?

Medigap doesn’t replace Medicare—it works alongside it. We like to say it complements it. Medicare pays its share of the approved amount for covered healthcare services, and then Medigap (depending on the plan) usually pays the remaining share.

Let’s say you’re hospitalized. Medicare Part A covers the hospital stay after you meet the deductible. If you have a Medigap plan like Plan G, it could cover the deductible, coinsurance, and any extended hospital stays up to an additional 365 days. It’s designed to give you peace of mind.

👉 Want more clarity on the numbers? Check out our article for the latest Medicare cost updates.

Does Medigap Cover Prescription Drugs?

No, Medigap plans do not cover prescription drugs. You’ll need to enroll in a separate Part D plan to get coverage for medications. Click here to get an Instant Medicare Part D Quote. If you’d like to explore your best options for prescriptions, check out our Complete Guide to Medicare Part D.

How Medigap Is Different from Medicare Advantage

Medigap and Medicare Advantage are very different. Medicare Advantage (Part C) REPLACES Original Medicare and usually includes drug coverage, but you must usually use a much smaller network of doctors and hospitals. Medigap works with Original Medicare and allows you to see any doctor who accepts Medicare nationwide.

Think of Medigap as enhancing your Medicare, giving you freedom and predictability. Medicare Advantage works more like a network-based HMO plan—you may pay less each month, but your choice of doctors is limited and there is typically a lot more out of pocket expenses.

👉 Read our full breakdown here—it’s simple and clear: Medigap vs. Medicare Advantage.

Is Medigap Worth It If You’re Healthy?

Even if you rarely visit the doctor, Medigap can be a smart choice. Health can change quickly, and if you wait too long, you may miss your chance to enroll without Medical Underwriting (yes you can be turned down for Medigap if you wait too long). According to an AHIP survey, nearly all of the 14 million Americans using Medigap to cover Medicare’s gaps are very satisfied with their plan (over 90%!).

Many healthy seniors opt for lower-premium options like Plan N, which still offer strong coverage. Having Medigap is like insurance for the unexpected. If you get sick or need a surgery down the road, you’ll be glad you signed up early.

👉 Not sure yet? Head over to our article to learn more: “Is Medigap Worth It? New report says 93% happy“.

How Much Does Medigap Cost?

Medigap premiums vary based on your state, plan type, age, gender, tobacco use, and even the company you choose. On average, Plan G might range from $100 to over $300 per month, while Plan N tends to be cheaper. High deductible G is the least expensive Medigap plan in most areas but comes with a $2,870 deductible.

Want a personalized estimate? Try our free Instant Medigap Quote Tool. No email or phone number required—just enter your ZIP code and see real-time prices from top insurers.

Q&A: What Is Medigap Coverage Used For?

Q: What are biggest benefits of having Medigap coverage?

A: For many, it’s the comfort of knowing their budget won’t be blindsided by an unexpected medical cost. With Medigap, you can plan your healthcare expenses more easily and avoid the stress that comes with uncertain bills. It also means fewer hassles with paperwork and billing. It also allows you to see ANY doctor or facility that accepts Medicare. Over 90% of all non pediatric doctors accept Medicare and therefore Medigap!

Q: Is Medigap the same everywhere, or does it vary?

A: The core benefits of each Medigap plan are standardized by the government, which is great news because it makes comparing plans easier. However, prices can vary depending on your location and the insurance company, and some states have unique rules — like New York which offer continuous guaranteed issue rights.

Q: Who might benefit most from Medigap?

A: Anyone who wants extra protection from out-of-pocket medical expenses. It’s especially helpful for folks with chronic health needs, frequent doctor visits, or who simply want the freedom to see any provider that accepts Medicare — no referrals needed.

Q: Can Medigap help with hospital bills?

A: Absolutely. One of the biggest perks of Medigap is how it helps with hospital-related expenses. Most plans cover the Part A hospital deductible, coinsurance, and even up to 365 extra days of hospital care after your Medicare benefits run out — which can be a huge relief during a health crisis.

Q: Does Medigap cover care received abroad?

A: Some Medigap plans (like Plan G or Plan N) offer limited coverage for emergency medical care when you’re traveling outside the U.S. It won’t replace travel insurance, but it’s a nice safety net if you’re someone who likes to explore beyond borders.

Q: Is Medigap coverage automatic once I enroll?

A: Once you enroll and your application is approved, coverage usually starts the first of the month following your application. There is no waiting periods for pre-existing conditions if you apply during your Medigap Open Enrollment. That means your protection kicks in when you need it most, no guesswork involved.

Q: Will Medigap cover services that Medicare doesn’t approve?

A: No. If Medicare doesn’t cover something, Medigap won’t either (except for foreign travel emergencies in some plans).

Need Help Choosing the Right Medigap Plan?

Choosing a Medigap plan can feel overwhelming—there are letters, costs, and coverage details to sort through. But don’t worry, you don’t have to figure it out on your own. Whether you’re brand new to Medicare or just thinking about switching plans, we’ll help you understand your options in plain, simple terms.

You can use our free Instant Medigap Quote Tool to see real prices in your area, or check your eligibility if you are outside your initial enrollment with our Underwriting Checker. Still have questions? Just give us a call at 800-930-7956 or drop a comment below—we’re always happy to help you make a confident, well-informed choice.