Private companies set the cost of Medigap premiums and other expenses. However, each policy that is labeled as Medigap is required to provide the same benefits. The plans all feature a cost range for each monthly premium. 

Medigap is given a letter identification which denotes the plan. Typically, it will also refer to either a Medicare Part A deductible or Medicare Part B premium, coinsurance, and co-pays.

11. What Medigap Covers

Depending on the Medigap plan, the cover options might include:

• Part A deductible
• Part B deductible
• Skilled nursing facilities
• Part B excess charges
• Foreign travel emergency 

10. Setting the Price of Medigap 

Companies rely on three methods to price the policies they offer: 

• Community Price: All members of the community pay the same amount of for a premium. Age is not a determining factor for pricing. In such a situation, the prices can change as a result of inflation, but age is never the cause of a price increase. 
• Attained Age Pricing: A price that is set based on the person’s current age. The cost will increase as the person gets older. 
• Issue Age Pricing: The initial price is based on a person’s age but it does not increase as the person ages. 

9. The Purpose of Medigap Policies

Medigap policies were designed to fill gaps in classic Medicare coverage (Part A and Part B). There are currently 10 Medigap plans that are identified by letters. The lettered plans offer the same coverage but with additional perks. 

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