TheStreet.com Ratings: Two New Medigap Plans

Editor's note: In our second article of this three-part series, TheStreet.com Ratings staff examines two new Medigap plans that are worth serious consideration.

If you have been looking to purchase Medicare supplement insurance -- otherwise known as "Medigap" -- for your parents or yourself, then you probably already know that there are 10 standardized plans, referred to by the letters A through J. You're also probably aware that Plans H, I and J once offered some prescription drug coverage but no longer do as a result of the Medicare prescription drug benefit that went into effect this year.

What you may not know is that there are two new plans to choose from: K and L. With the changes in Medicare prescription drug coverage taking all the headlines, these two plans have received little attention. And it's unfortunate, because they are worthy of serious consideration.

Medigap insurance is all about filling the gaps in Medicare coverage, and most importantly, it helps limit your out-of-pocket medical expenses. Most people believe that they are fully covered by Medicare, and don't realize that they would be on the hook for the costs if they were to require an extended hospital stay or nursing-facility care beyond 100 days.

Medigap covers expenses above and beyond what Medicare does. If you or your parents are on Medicare, you should definitely consider buying a Medigap policy. Not doing so could put you at risk of a catastrophic expense.