Supplemental policies that are sold by private insurance companies are referred to as Medigap.

These policies are designed to supplement or fill in the gaps in the Medicare coverage. The policies pay for medical expenses that would otherwise have to be paid out of your own pocket. These policies offer a good way to cover items such as deductibles, coinsurance payments and prescription drugs. Medigap policies are not government sponsored. They are, however, regulated in form and content by state and federal laws to make it easier for consumers to compare pricing. You’ll find a wide range of coverage between the least expensive and the most comprehensive and supplemental policy. All Medigap policies must have a thirty-day money-back guarantee; there cannot be a waiting period longer than 6 months; the policy must be renewable and insurers are prohibited from selling plans, which duplicate Medicare coverage.