Medicare Supplement Plans (also called Medigap plans) cover the gaps in Original Medicare. Each Medigap Plan is standardized by Medicare and named after a letter. Each covers a specific set of gaps in Medicare. The easiest way to compare Medigap or Medicare Supplement Plans is to use the side by side chart that is put out by The Centers for Medicare and Medicaid Services. They release a new version of this chart every year. There typically aren’t any changes, but if there are changes they are updated on this chart annually.
Each Medicare Supplement Plan covers different items, so you will want to compare all Medigap plans so you can choose the one that will work best for you. When you shop Medigap plans you will notice that some cover more, but have a higher premium while others cover fewer items but have a much lower premium. In other words, the more of the gaps in Medicare that you agree to cover yourself, the lower premium you will have to pay.
How Does Medigap Insurance Work?
A Medigap insurance policy is designed to cover some or all of your Medicare copays and shares of cost. Depending on the Medicare Supplement Plan that you choose, it may cover all of your co-pays, deductible and coinsurance.
These same plans are offered across the board by many different name brand carriers that you can choose from. The only difference between companies with the same plan letter name will be price.
Which Medigap Plan is Best?
For many people, the best plan is Plan F. It is the most popular plan. This is because it covers almost everything. The next most popular plan is Plan G.
The difference between Plan F and Plan G is that Plan F covers the Part B deductible, and Plan G does not. The annual savings for Part G comes in paying a lower plan premium each month. Since each plan’s premium is based on your age As you get older you can easily save well over $50 a month by switching to Plan G. Typically once you pass 70 years old, the monthly savings will surpass the cost of the Part B deductible.
When comparing Medigap plans, it is also important to note that Plan F is no longer an option for new enrollees to Medicare. For people just now enrolling in Medicare, Plan G is the most comprehensive plan available. Plan F and Plan C are the only plans to offer coverage of the Part B deductible, and neither plan is available to anyone who enrolls in Medicare after 2020. If you have enrolled in Medicare or do enroll in Medicare for the first time after 2020, you will not be able to get a Medigap Plan that covers the Part B deductible. The broadest coverage available to you will be Plan G.
Plan N is another plan that many people are interested in. This plan is popular because it offers lower premiums than Plan G for people who would rather share the cost of co-pays ($20 for doctors and $50 for Emergency room) and pay their own excess charges. If you aren’t familiar with what excess charges are or how they can affect you and your medical insurance, you can find further information on our website.
How To Assess Medicare Supplement Plans
If you want to compare the different Medicare Supplement Plans, the best thing to do is use the official Medicare Supplement Plans comparison chart. They publish a new one each year with current information. You can find it in a booklet that is sent to you annually, online or in some of their other literature.
It is a side by side layout of the details and benefits of each Medigap Plan. This allows you to look at each one and see them altogether so that you can tell which one will cover the most of what you need specifically.
The 10 Medicare Supplement Plans
This is a quick glance at the basics of each of the ten Medigap Plans to help you get a better understanding of each one when you’re ready to compare Medigap plans.
Medigap Plan A
The most basic Medigap coverage is Plan A. Medicare doesn’t cover 20% of outpatient treatments, and Plan A covers that. This is a plan option that must be offered in every state, but in some specific cases it is not offered to those under 65 years of age.
You Pay:
- Part A Deductible
- $1556 Days 1-60
- Skilled Nursing Facility Coinsurance
- $194.50 a day after 20 days
- Part B Deductible
- $233 once a year
- Part B Excess Charges
- Up to 15% over Medicare rates
- Foreign Travel
- All foreign health care costs
Medigap Plan B
Plan B is like Plan A but also gives you coverage of the Medicare Part A hospital deductible.
Medigap Plan B is an insurance that pays for things not paid for by Medicare. This is not the same as and has nothing to do with your Medicare Part B coverage.
You Pay:
- Skilled Nursing Facility Coinsurance
- $194.50 a day after 20 days
- Part B Deductible
- $233 once a year
- Part B Excess Charges
- Up to 15% over Medicare rates
- Foreign Travel
- All foreign health care costs
Medigap Plan C
Plan C is a Medicare Supplement Plan that covers almost everything. The one thing that you will see it does not cover is excess charges. Again, it is important to remember that while this is a very popular plan because of its comprehensive coverage, it is no longer available to new Medicare enrollees.
You Pay:
- Part B Excess Charges
- Up to 15% over Medicare rates
- 20% Foreign Travel
- 20% of all foreign emergency room costs
Medigap Plan D
This is not a very popular plan. That is because while Plan D does cover many things, it doesn’t cover the Part B deductible and it doesn’t cover excess charges.
Medigap Plan D is an insurance supplement that pays for things Medicare does not. This is not your Medicare Part D which has to do with your
You Pay:
- Part B Deductible
- $233 once a year
- Part B Excess Charges
- Up to 15% over Medicare rates
- 20% Foreign Travel
- 20% of all foreign emergency room costs
Medigap Plan F
Medigap Plan F coverage is extensive and pays everything that Medicare does not. This leaves you with no out of pocket expenses, which is why it is such a popular plan. However, this plan is no longer offered to people who are now enrolling into Medicare.
You Pay:
- No out of pocket for all Medicare covered expenses
Medigap Plan G
Plan G also has extensive coverage. It doesn’t cover the Part B deductible, like Plan F, however, with competitive rates, it sometimes is still the better option in the long run.
You Pay:
- Part B Deductible
- $233 once a year
- 20% Foreign Travel
- 20% of all foreign emergency room costs
Medigap Plans K, L & M
These are plans that provide partial coverage. For example, Plan L pays three quarters of most items, while Plan K pays half. You will not find these plans offered everywhere, but when you do, they often have very competitive pricing. These plans are also generally not as popular.
Medigap Plan N
Medigap Plan N offers lower premiums, but you have to pay co-pays on doctors visits and emergency room visits. This can be a great option if you don’t require as much medical attention. It is important to weigh your own personal needs when you consider choosing Plan N.
You Pay:
- Part B Deductible
- $233 once a year
- Part B Excess Charges
- Up to 15% over Medicare rates
- 20% Foreign Travel
- 20% of all foreign emergency room costs
- $20 copay for all doctors visits
- $50 copay for all emergency room visits
How to Find a Doctor When You Have a Medigap Plan
Finding a doctor is easy when you have a Medigap Plan. All you have to do is ask if the doctor accepts Medicare. Any doctor who accepts Medicare will accept your Medigap insurance as well.
This means that you are not limited by any networks. You can see any doctor you want in the United States as long as they accept Medicare.
Plan Rates For 2022
As you ask yourself how to compare Medigap plans, remember that each plan is the same no matter where you buy it. All of the plans are standardized by the government. No matter what insurance company sells you a plan, or what you pay for it, the coverage itself is the same. Plan A will always cover the same items no matter what. So will Plan B, Plan C and so on.
A Medigap agent can help you find the best plan for you and then help you shop for the best companies with the best prices for the plan that you want. Since the coverage will remain the same across the board, the best thing to do is go through a Medigap broker, that way you can ensure that you are getting the best price as well as the best coverage.
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