Understanding Medicare Supplement Plans

Medicare Supplement plans help cover costs that Original Medicare doesn't pay. These plans work alongside your Medicare Part A and Part B coverage to reduce your out-of-pocket expenses.

What Are Medicare Supplement Plans?

Medicare Supplement plans (also called Medigap) are insurance policies sold by private companies to fill the "gaps" in Original Medicare coverage. These gaps include deductibles, copayments, and coinsurance that would otherwise be your responsibility.

When you have a Medicare Supplement plan:

  • The plan pays its share of covered healthcare costs
  • Original Medicare pays its share
  • Submit to your local Social Security office.
  • You pay little to nothing for covered services

Medicare Supplement plans are standardized with letter designations (A through N). Each plan letter offers the same basic benefits regardless of which insurance company sells it, though prices may vary between companies.

Who Can Get Medicare Supplement Plans?

You're eligible for Medicare Supplement insurance if:

  • You're enrolled in both Medicare Part A and Part B
  • You're 65 or older (for guaranteed issue rights)

Your Medigap Open Enrollment Period lasts for 6 months and starts the first month you have Medicare Part B and are 65 or older. During this period, you can:

  • Buy any Medigap policy sold in your state
  • Get better prices and more choices
  • Enroll regardless of health conditions (insurance companies cannot deny you coverage)

Special note for those under 65

Federal law doesn't require insurance companies to sell Medigap policies to people under 65, though some states have additional protections. Check with your State Insurance Department about your rights under state law.

When Can You Enroll in Medicare Supplement Plans?

The best time to enroll is during your Medigap Open Enrollment Period. This six-month window begins when:

  • You're enrolled in Medicare Part B, AND
  • You're 65 or older

Outside this period, you may have guaranteed issue rights in specific situations, such as:

  • When you lose other health coverage.
  • When you move out of your plan's service area.
  • When your Medicare Advantage plan leaves Medicare.

Medicare Supplement vs. Medicare Advantage

Many people confuse Medicare Supplement and Medicare Advantage plans, but they're fundamentally different:

Feature

Medicare Supplement

Medicare Advantage

How it works
Works with Original Medicare
Replaces Original Medicare
Provider choice
Any doctor accepting Medicare nationwide
Limited to network providers
Referrals
Generally not required
Often required
Monthly premium
$65-$450 (varies by plan/location)
Average $17 in 2025
Out-of-pocket maximum
No built-in limit
Yes, annual maximum limit
Prescription coverage
Requires separate Part D plan
Usually included

Key differences to remember:

  • Medicare Supplement works alongside Original Medicare
  • Medicare Advantage replaces Original Medicare
  • You cannot have both plans simultaneously

Medicare Supplement Plans Comparison

All Medicare Supplement plans cover certain basic benefits, but each plan offers different levels of coverage:

Benefit

Plan A

Plan B

Plan D

Plan G

Plan N

Part A coinsurance
100%
100%
100%
100%
100%
Part B coinsurance
100%
100%
100%
100%
100%*
Part A deductible
No
100%
100%
100%
100%*
Part B deductible
No
No
No
100%
No
Part B excess charges
No
No
No
100%
No

Plan G: The New Gold Standard

Plan G has become one of the most popular Medicare Supplement options for good reason. It offers comprehensive coverage with predictable costs.

What Plan G Covers

  • 100% of Medicare Part A deductible ($1,676 in 2025)
  • 100% of Medicare Part A coinsurance and hospital costs
  • 100% of Medicare Part B coinsurance and copayments
  • 100% of Medicare Part B excess charges
  • 100% of blood (first 3 pints)
  • 100% of Part A hospice care coinsurance
  • 100% of skilled nursing facility care coinsurance
  • 80% of foreign travel emergency costs (up to plan limits)

What Plan G Doesn't Cover

  • Medicare Part B deductible ($257 in 2025)
  • Prescription drugs (requires separate Part D plan)
  • Vision, dental, or hearing services
  • Long-term care

Why Choose Plan G?

  • Comprehensive coverage: Covers almost everything except the Part B deductible
  • Predictable costs: After paying your Part B deductible, you'll have minimal out-of-pocket expenses
  • No network restrictions: See any doctor that accepts Medicare
  • No referrals needed: Visit specialists without prior authorization
  • Nationwide coverage: Protection wherever you travel in the US

Plan N: The Value Option

Plan N offers substantial coverage at a lower premium than Plan G, making it an excellent value for many beneficiaries.

What Plan N Covers

  • 100% of Medicare Part A deductible ($1,676 in 2025)
  • 100% of Medicare Part A coinsurance and hospital costs
  • 100% of Medicare Part B coinsurance (with some copayments)
  • 100% of blood (first 3 pints)
  • 100% of Part A hospice care coinsurance
  • 100% of skilled nursing facility care coinsurance
  • 80% of foreign travel emergency costs (up to plan limits)

Plan N Copayments

With Plan N, you'll pay:

  • Up to $20 copay for some office visits
  • Up to $50 copay for emergency room visits that don't result in hospital admission
  • The annual Part B deductible ($257 in 2025)

Why Choose Plan N?

  • Lower premiums: Typically 20-30% less expensive than Plan G
  • Predictable copayments: Small, fixed costs for doctor visits
  • No network restrictions: See any doctor that accepts Medicare
  • No referrals needed: Visit specialists without prior authorization

Plan G vs. Plan N: Which Is Better?

The choice between Plan G and Plan N depends on your healthcare needs and budget:

Consideration

Plan G

Plan N

Monthly premium
Higher
Lower
Office visit costs
None
Up to $20 copay
Emergency room costs
None
Up to $50 copay if not admitted
Part B excess charges
Covered
Not covered
Best for
Those who visit doctors frequently
Those who are generally healthy

Consider Plan G if:

  • You see doctors frequently
  • You want to avoid any copayments
  • Your providers sometimes charge excess fees
  • You prefer paying more monthly for fewer out-of-pocket costs

Consider Plan N if:

  • You're relatively healthy with few doctor visits
  • You're comfortable paying small copayments
  • Your providers accept Medicare assignment (don't charge excess)
  • You prefer lower monthly premiums

High Deductible Plans

High deductible versions of Medicare Supplement plans offer lower monthly premiums in exchange for a higher initial out-of-pocket cost.

High Deductible Plan G

Key features:

  • 2025 annual deductible: $2,870
  • Significantly lower monthly premiums ($40-$80)
  • You pay all Medicare-covered costs until the deductible is met
  • After meeting the deductible, coverage is identical to standard Plan G
  • Available in most states

Who should consider High Deductible Plan G:

  • Those in good health with few expected medical needs
  • Those who can afford to pay the deductible if needed
  • Those looking to minimize monthly premium costs
  • Those who want comprehensive coverage after meeting the deductible

High Deductible Plan G

High Deductible Plan F is only available to those eligible for Medicare before January 1, 2020.

Key features:

  • 2025 annual deductible: $2,870
  • Lowest monthly premiums among Medigap plans
  • You pay all Medicare-covered costs until the deductible is met
  • After meeting the deductible, coverage is identical to standard Plan F
  • Only available to those Medicare-eligible before 2020

How to Choose the Right Medicare Supplement Plan

When selecting a Medicare Supplement plan, consider:

  • Your healthcare needs: How often do you visit doctors? Do you have chronic conditions?
  • Your budget: What monthly premium can you afford? How much could you pay out-of-pocket?
  • Your risk tolerance: Do you prefer higher premiums with predictable costs or lower premiums with potential higher costs?
  • Your future needs: Consider not just your current health, but potential future needs

Remember that the best time to enroll is during your Medigap Open Enrollment Period when you have guaranteed issue rights.

Next Steps

To get the right Medicare Supplement plan:

  • Determine when your Medigap Open Enrollment Period begins
  • Compare plans and prices from multiple insurance companies
  • Apply during your enrollment period for the best rates and guaranteed acceptance
  • Consider also enrolling in a Medicare Part D plan for prescription drug coverage

Medicare Supplement plans provide valuable protection against unexpected healthcare costs. By understanding the differences between plans and choosing the one that best fits your needs, you can enjoy the peace of mind that comes with comprehensive coverage.

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