Health Care Reform:

Medicare: What Are Medigap Plans?

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Insurance companies set their own prices and rules about eligibility, so it's important to shop around.

Most Medigap plans help pay for some of your Medicare co-payments, co-insurance for hospital stays, and some other services.

Less expensive plans have fewer benefits and higher out-of-pocket costs. More expensive plans include extra benefits, like coverage for routine checkups, some Medicare deductibles, at-home recovery, and more. You have to decide what sort of plan makes the most sense for you. In most cases, if you drop your Medigap policy, you won't be able to get it back.

• Some Medigap plans used to cover prescription drugs. Since the introduction of the Medicare Prescription Drug Plan (Part D), you can no longer sign up for these plans. If you already have a Medigap plan that covers drugs, however, you can keep it.
• For more information about Medigap plans, see the Medicare web site at www.medicare.gov or call 1-800-MEDICARE.