Medicare Supplement Overview
Understanding Your Medicare Supplement Plan Options
Navigating Medicare can feel complicated, especially when it comes to out-of-pocket costs. Original Medicare (Parts A and B) is a great start, but it doesn’t cover everything. That’s where Medicare Supplement Insurance, also known as Medigap, comes in. These plans, sold by private companies, help pay for some of the remaining healthcare costs like copayments, coinsurance, and deductibles. Let’s explore how these plans can give you greater financial predictability and peace of mind.
Keep reading or jump to our Highlights and Frequently Asked Questions.
Comparing Medicare Supplement (Medigap) Plans
Medigap plans are standardized across most states, meaning that a Plan G from one company offers the same basic benefits as a Plan G from another. The main differences are the monthly premium costs and the insurer’s customer service. This standardization makes it easier for you to compare plans based on your needs and budget.
There are 10 standardized Medigap plans available in most states, labeled with letters A, B, C, D, F, G, K, L, M, and N. (Note: Plans C and F are only available to individuals who were eligible for Medicare before January 1, 2020). Each plan covers a different combination of costs.
What Do Medigap Plans Cover?
All Medigap plans must cover certain basic benefits, including:
- Part A Coinsurance: All plans fully cover your Part A coinsurance for hospital stays.
- 365 Extra Hospital Days: You get an additional year of hospital coverage after your Original Medicare benefits are used up.
- Part B Coinsurance or Copayment: Most plans fully cover your Part B coinsurance (typically 20% of the Medicare-approved amount for most services).
- First 3 Pints of Blood: This is covered by all standardized plans.
The Most Popular Medigap Plans
While there are many options, most new enrollees find their needs are met by one of three popular plans: Plan G, Plan N, or a high-deductible plan.
- Plan G: This is the most comprehensive plan available to new Medicare beneficiaries. It covers nearly all of your out-of-pocket costs after you meet the annual Part B deductible. This includes your Part A deductible, Part B coinsurance, and Part B excess charges. For those who want predictable costs and minimal out-of-pocket expenses for services, Plan G is often the best choice.
- Plan N: Plan N offers a great balance between comprehensive coverage and lower monthly premiums. Like Plan G, it covers your Part A deductible and Part B coinsurance. However, with Plan N, you are responsible for small copayments for some doctor’s office visits (up to $20) and emergency room visits (up to $50, waived if admitted). It also does not cover Part B excess charges.
- High-Deductible Plan G (HDG): This plan offers the same coverage as the standard Plan G but requires you to meet a separate, higher plan deductible before it begins to pay. In exchange, the monthly premiums are significantly lower. This can be a good option if you are healthy and want to save on monthly costs but still want protection against major, unexpected medical expenses.
Medicare Supplement Plans Comparison Chart
Here is a simplified look at what some of the most common Medigap plans cover. For a complete comparison, you can visit the official chart on Medicare.gov.
| Benefit | Plan G | Plan N | High-Deductible Plan G |
| Part A Coinsurance & Hospital Costs | 100% | 100% | 100% (after deductible) |
| Part B Coinsurance or Copayment | 100% | 100% (with copays) | 100% (after deductible) |
| Part A Deductible | 100% | 100% | 100% (after deductible) |
| Part B Deductible | No | No | Must be met |
| Part B Excess Charges | 100% | No | 100% (after deductible) |
| Foreign Travel Emergency | 80% | 80% | 80% (after deductible) |
Medicare Can Be Confusing
We understand. That's why we wrote a simple guide to help you decipher the terms, makes sense of the options and gain enough insight to make an informed decision.
If you're not ready to reach out to Bob and the Insurance Connection team, please grab your free copy of The ABC’s & D of Medicare. Learn More
Medicare Supplement Plan Guide
Frequently Asked Questions
When is the best time to buy a Medigap policy?
Your Medigap Open Enrollment Period is the best time to enroll. This six-month window begins on the first day of the month in which you’re 65 or older and enrolled in Medicare Part B. During this period, insurance companies cannot use medical underwriting to deny you a policy or charge you more due to health issues.
Can I switch my Medigap plan later?
Yes, you can apply to switch your Medigap plan at any time. However, if you are outside your Open Enrollment Period, insurance companies can require medical underwriting. This means they can charge you a higher premium or deny coverage based on your health history.
Do Medigap plans include prescription drug coverage?
No, Medigap plans sold after 2006 do not include prescription drug coverage. To get coverage for your medications, you will need to enroll in a separate Medicare Part D Prescription Drug Plan.
Insurance Connection USA is a division of Garrison Enterprises a licensed Insurance agency and not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. Medicare has neither reviewed nor endorsed this information. Not connected with or endorsed by the United States government or the federal Medicare program.
Important Highlights
Medicare Supplement plans are designed to fill the “gaps” in Original Medicare, helping you manage out-of-pocket healthcare costs.
Plans G and N are the most popular choices for new enrollees, offering a balance of strong coverage and manageable premiums.
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