Tens of millions of people are covered by Original Medicare (Part A and Part B). Almost one quarter of those people choose a medigap plan for additional coverage. In 2023, three of the top Medigap plans are: Medicare Plan F, Medicare Plan G and Medicare Plan N. If you are like a lot of people, you may be unsure which of these plans offers the best coverage for you.
An average couple in their mid sixties spends more than half of their Social Security benefits on things related to their healthcare. If you are worried about the out-of-pocket costs associated with healthcare, choosing a Medigap plan may work for you.
Which Medigap Plan is Best?
When choosing between Medigap Plans, Plan F is the best Medigap plan if you are looking for the most comprehensive coverage. It covers everything that Medicare doesn’t. The main difference between Plan F and Plan G is that Plan G does not cover the Part B deductible. The next popular plan is Plan N. Plan N is just like plan G, but in addition to not covering the Plan B deductible, it also does not cover your excess charges, and has a small $20 copay for doctors.
How Does Medigap Work?
Federal and state laws govern how Medigap plans work. Each of the 10 Medigap plans are standardized. This means that a plan has the same coverage no matter which state you live in or what company you purchase your plan through. The benefits and coverage of the plans never changes, although the premiums may vary.
Federal and state laws govern how Medigap plans work, but the plans are administered by private insurance companies. Each company that offers Medigap insurance does not have to offer all 10 of the plans. In order to be allowed to offer Medigap coverage, an insurance company must offer Plan A. If a company chooses to offer more than Plan A, they must offer either Plan C or Plan F as well as any other plans they want to offer.
Plan F is by far and away the most popular plan. However, Plan N and Plan G are both quickly gaining a lot of popularity. Here is how you can make the best choice between all of the plans and find the one that will work best for you.
Plan F: A Closer Look
If you’re choosing between Medigap plans and you want a plan that covers everything, Plan F is the answer. If you are managing a chronic illness or have many health concerns, this is most likely going to be the best plan for you.
Pros:
- It provides you with first dollar coverage. This means that Plan F pays your deductibles so that you do not have to pay anything before your Medicare coverage kicks in.
- It pays your excess charges.
Cons:
- This plan is only available if you were eligible for Medicare before 2020.
- If you want lower premiums when choosing between Medigap plans, you can choose to enroll into a high deductible Plan F to pay a deductible which is $2,370 in 2021, before your benefits kick in and in exchange, you pay lower premiums ($30-40 a month).
What Plan F Covers:
- Deductibles for Part A & Part B
- Copays for Part A & Part B
- Coinsurances for Part A & Part B
- Hospital Coinsurance (with some stipulations)
- Excess Charges
- Coinsurance for Skilled Nursing Care
- Coinsurance for Hospice Care
- 3 Pints of Blood per year
- Upto 80% of Emergency Care During Foreign Visits
Plan G: A Closer Look
Plan G is similar to Plan F. It covers all of the same things, except it does not cover the Part B deductible. In 2021, the cost of the deductible is $203. Other than Plan F, this is the only plan that covers your excess charges. If you do not want to have to pay excess charges, you will want to opt for Plan G or Plan F when choosing between Medigap plans.
Pros:
- Extensive coverage.
- This plan covers your excess charges.
- This plan is available to everyone who is eligible for Medicare.
Cons:
- You pay higher premiums for more extensive coverage.
- Plan B deductible is not covered by Plan G.
What Plan G Covers:
Plan G covers everything that Plan F covers, EXCEPT for the Plan B deductible.
Plan N: A Closer Look
Plan N is the next most comprehensive plan. Plan N is great because it still provides you with extensive coverage from health crises but it gives you lower premiums.
Pros:
- Extensive coverage for health crises
- This plan is available to everyone who is eligible for Medicare.
Cons:
- Plan B deductible is not covered by Plan N.
- This plan does not cover your excess charges.
- You might have to pay a small copay out of pocket for doctor visits and some hospital visits.
What Plan N Covers:
Plan N covers everything that Plan F covers, EXCEPT for the Plan B deductible, your excess charges, a $20 copay for doctors visits, and a $50 copay for emergency room.
Can I Change My Medigap Plan?
Yes, you will be able to change your Medigap plan. However it is very important to understand that once your open enrollment period ends, you will have to apply for any new coverage. This means to get a new plan, you will have to answer medical questions and be subject to underwriting. Further, your acceptance is no longer guaranteed. After your open enrollment period ends, if you apply for different coverage you can be denied. There are a few guaranteed acceptance periods available but they may vary by state and circumstances. You can see if you qualify for one HERE.
Still Have Medigap Questions?
This is why it is so important when you are choosing between Medigap plans, to make the right choice for you. If you find the whole process overwhelming, you aren’t sure you understand all of your options, or you just want a second opinion from a professional, it is a good idea to contact a Medigap insurance specialist.
How To Pick The Right Local Medicare Insurance Agent