A Medicare Supplement Policy/Medigap policy helps cover the cost for medical services that original Medicare does not cover. It's a supplemental policy designed to address weaknesses or gaps in the original Medicare plan. When combined with the original Medicare plan, Medicare Supplement Policies work together to pay most health care costs.

There's a prevailing myth that Medicare and Medigap are so complex and varied across the nation that no one could possibly understand them, let alone afford them. The truth is quite different. Medicare Supplement plans can be very affordable and are standardized in the sense that all insurance carriers have the same plan designs for Medicare supplement polices. The only difference from carrier to carrier is price.

What differs at the state level is that private health insurance companies have the option to choose which of the 10 Supplement plans they will sell to the consumer. So it makes good sense to compare the plans and the premiums prior to making a purchase. Plans A through J offer a variety of different benefits and extras making them ideal for consumers who like a cafeteria approach to health care coverage.

Health insurance agents can make a huge difference in the type of coverage consumers opt for simply by the nature of the advice they are able to provide. Typically, local health insurance brokers have a better grasp on the marketplace than big name insurance brokers, whose call centers often handle policies in multiple states.

In order to qualify for a Medigap policy, customers must first have both parts A and B of Medicare. The choice of the additional Medigap coverage will include an additional premium beyond what's required for Medicare part B. In rare cases, some Medicare Beneficiaries must pay for Part A. Spouses must each have their own Medigap policy. The husband's Medigap coverage will not apply to the wife and vice versa.

The general consensus on the Medicare Supplement/Medigap industry is that these separate insurance policies fill quite a few “gaps” in the original Medicare. While it may not always be perfect coverage, one of the Medigap plans usually satisfies the customers’ needs.