Why Are All Medicare Supplemental Plans Standardized?

All Medicare supplemental plans were standardized to accommodate federal regulations and improvements as needed. Medicare health coverage for eligible Medicare participants covers the cost gap without disrupting medical care choices. The purpose was to fill in the gaps for medical services not covered in the original Medicare program, which is how the primary directive of Medicare supplement plans, Medigap received its name. Fundamental objectives of Medigap premiums were to assist Medicare participants living on fixed incomes with out of pocket medical expenses related to increasing health costs.


Seniors approaching the eligible age or within 6 months of reaching the age of 65 are required to enroll in Medicare. Original Medicare coverage premiums are deducted automatically from Social Security benefits. In order to participant in any Medicare supplements plans the Medicare participant must enroll in Medicare Parts A and B. Medigap premiums for Medicare supplements are paid directly to the private insurance companies with costs dependent on the plan selected, participant’s location and age. Medigap standardized plans are regulated by the federal government, but Medigap premiums are managed and controlled by the private insurance companies offering the plans.


Private insurance companies sell standardized plans with Medigap premiums for basic coverage and available options with an increased monthly premium to the Medicare participant. All Medigap Medicare supplemental standardized plans cover a portion of co-payments, co-insurance and deductibles not covered in the original Medicare plan. Depending on the plan selected by the Medicare participant the percentage of coverage will differ as will the additional benefit coverage; such as prescription drugs for newly enrolled Medicare participants. The new development of Medicare’s prescription drug plan (PDP) allows previously purchased Medicare supplement drug coverage to remain in place.

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