What You Need to Know
Medicare Supplement plans, or Medigap, are health insurance policies designed to help cover out-of-pocket costs not paid by Original Medicare (Parts A and B). These plans help reduce the financial burden of expenses such as coinsurance, copayments, and deductibles, ensuring you have better protection against unexpected healthcare costs.
There are 10 Medigap plans available to people turning 65 in 2024, which are identified by letters such as A, B, C, G, and so on. While the names of the plans are standardized, their coverage and costs can differ significantly between insurance providers, so it’s crucial to compare options to find the right fit for your healthcare needs.
Key Takeaways
- Medigap plans help cover out-of-pocket costs not included in Original Medicare, such as deductibles and coinsurance.
- There are 10 plans to choose from, with coverage that varies across different plan types.
- Popular Medigap plans include Plan G, Plan N, and Plan F, while Plan A is among the most widely available.
- Each plan has different coverage levels, and premiums can vary widely by insurer and location.
- It’s important to understand the coverage and associated costs when comparing Medigap options.
How Does Comparing Medicare Supplement Plans Work?
Each Medigap plan is standardized by the federal government. This means that a Medigap Plan G from one insurance company will offer the same coverage as Plan G from another company. However, prices can vary between insurers, so you should shop around to find the most affordable option. Additionally, availability may vary depending on your state and your eligibility date.
It’s important to note that the Medigap plans available to those who turn 65 after January 1, 2020, differ from those available to those who were eligible before this date. If you turned 65 before 2020, you may also have access to Medigap Plans C and F, which are no longer available to those turning 65 after January 1, 2020.
Plans are standardized across the U.S. but Massachusetts, Minnesota, and Wisconsin have their own systems with different offerings. If you’re living in these states, you will have a slightly different selection of plans to choose from.
Coverage Breakdown for Medigap Plans
Medicare Supplement plans are designed to complement Original Medicare by covering gaps such as deductibles, coinsurance, and copayments. While many plans provide similar coverage, some are more comprehensive than others. The chart below summarizes the key benefits of each plan:
| Benefit | Plan A | Plan B | Plan G | Plan K | Plan L | Plan N | Plan C | Plan F |
|---|---|---|---|---|---|---|---|---|
| Part A coinsurance and hospital costs | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Part A deductible | No | Yes | Yes | 50% | 75% | Yes | Yes | Yes |
| First three pints of blood | Yes | Yes | Yes | 50% | 75% | Yes | Yes | Yes |
| Part A hospice | Yes | Yes | Yes | 50% | 75% | Yes | Yes | Yes |
| Skilled nursing facility coinsurance | No | No | Yes | Yes | 50% | Yes | Yes | Yes |
| Part B coinsurance/copay | Yes | Yes | Yes | 50% | 75% | Yes | Yes | Yes |
| Part B excess charges | No | No | Yes | No | No | No | No | Yes |
| Foreign travel emergency | No | No | Yes | No | No | Yes | Yes | Yes |
| Out-of-pocket maximum (2024) | N/A | N/A | N/A | $7,060 | $3,530 | N/A | N/A | N/A |
In-Depth Look at the Popular Medigap Plans
Medigap Plan A
Medigap Plan A offers the most basic coverage among the available plans. It covers essential costs like Part A coinsurance, hospice care, and Part B coinsurance. However, it does not cover the Part A deductible, which can leave you with more out-of-pocket costs. Plan A can be a good option for those seeking minimal coverage at a lower premium, particularly if you’re willing to cover some costs on your own.
Medigap Plan B
Plan B is similar to Plan A but adds coverage for the Part A deductible. This makes it a more comprehensive option than Plan A, covering most essential costs without leaving you with a large deductible to cover out of pocket. It is a good choice for those who need extra financial protection beyond the basics.
Medigap Plan G
Plan G is one of the most popular Medigap plans because it offers a broad range of coverage, including the Part A deductible, Part B coinsurance, and foreign travel emergency care. It’s a top choice for people who want comprehensive coverage for most healthcare expenses. For those willing to pay a higher premium, Plan G offers excellent protection and peace of mind. Additionally, Plan G is available as a high-deductible option, which may suit those who have savings to cover the deductible upfront.
Medigap Plan N
Plan N is known for offering affordable coverage with low copayments for doctor visits and emergency room trips. While it doesn’t cover the Part B deductible or excess charges, it’s still one of the most popular options. Plan N can be a good middle ground for those who want comprehensive coverage but are looking for a lower premium. It’s a particularly good option if you are okay with small copays for certain visits.
Medigap Plan F
Plan F is the most comprehensive option, covering all costs that Original Medicare does not cover, including the Part B deductible and Part B excess charges. It’s the best choice for those who want complete coverage with no surprises. However, Plan F is only available to those who were eligible for Medicare before January 1, 2020. The high-deductible version of Plan F is also available, with a deductible of $2,800 in 2024, after which it covers all eligible expenses.
Medigap Plan K and Plan L
Plans K and L offer a different approach to coverage. These plans cover a percentage of out-of-pocket costs until a set out-of-pocket limit is reached, after which the plan covers 100% of covered expenses. Plan K offers 50% coverage for most services, with a $7,060 out-of-pocket limit in 2024, while Plan L offers 75% coverage, with a $3,530 limit. These plans are suitable for individuals looking for a lower premium and willing to take on more cost-sharing.
Medigap Plan M
Plan M covers most of the out-of-pocket expenses but only pays half of the Part A deductible. It includes coverage for skilled nursing care and foreign travel emergency care, making it a solid option for people who need coverage but can afford to cover part of the Part A deductible on their own.
How to Choose a Medigap Plan
Choosing the right Medigap plan requires evaluating your personal healthcare needs and budget. Here are some things to consider:
- Coverage Needs: Determine how much coverage you need based on your health status, expected medical costs, and preference for financial risk. Some plans cover more costs but come with a higher premium.
- Budget: Consider how much you can afford for monthly premiums and out-of-pocket costs. Some plans, like Plan A and Plan N, have lower premiums but may require you to cover more out-of-pocket expenses.
- State of Residence: Medigap plans may not be available in all states, and some states have additional requirements or options.
- Age and Health Status: If you are in good health, a plan with lower premiums and higher out-of-pocket costs, such as Plan K or L, might be more affordable. If you need more comprehensive coverage, plans like Plan G or Plan F might be better.
Medigap Plans for Disabled People Under Age 65
If you are under age 65 and have Medicare due to a disability, there are no federal mandates requiring insurers to offer Medigap policies. However, in 33 states, you may have access to Medigap coverage if you qualify for Medicare due to disability.