Best Secondary Insurance for Medicare: 2025 Guide

Table of Contents

Finding the best secondary insurance for medicare feels like it should be complicated, right? Thankfully, Medigap is refreshingly simple. The federal government standardized all the plans, which means the benefits for each plan letter are the same, no matter which company you choose. A Plan G from one insurer offers the exact same basic medical benefits as a Plan G from another. This simple rule makes choosing a medigap policy much easier. Your decision really just comes down to picking the right coverage level and then shopping for the best price from a reputable company.

Key Takeaways

Act During Your One-Time Enrollment Window: Your six-month Medigap Open Enrollment Period is your golden ticket. It starts when you turn 65 and enroll in Part B, and it’s the only time you’re guaranteed any plan you want without facing health questions or higher premiums for pre-existing conditions.
Compare Prices, Not Benefits: All Medigap plans with the same letter (like Plan G) offer the exact same basic coverage, no matter which company sells them. Your job is to choose the plan letter that fits your needs, then shop around to find the insurance company offering it at the best price.
Remember to Add Prescription Drug Coverage: Medigap plans do not cover prescription drugs. To avoid a lifelong late enrollment penalty and get help with medication costs, you must purchase a separate Medicare Part D plan.

What Is a Medigap Plan?

Think of a Medigap plan as a helper policy that works alongside your Original Medicare (Part A and Part B). Also known as Medicare Supplement Insurance, Medigap is sold by private insurance companies and is designed to help pay for some of the healthcare costs that Original Medicare doesn’t cover. These are the “gaps” in coverage, like deductibles and coinsurance, that you would otherwise have to pay for out of your own pocket.

One of the most helpful things to know is that Medigap plans are standardized. This means that no matter which company you buy from, a Plan G from one company offers the exact same basic benefits as a Plan G from another. The main differences you’ll find are the monthly premium you pay and the company’s customer service reputation. This standardization makes it much easier to compare plans and find one that fits your budget and healthcare needs without getting lost in confusing benefit details.

How Medigap Works with Original Medicare

Medigap plans work directly with Original Medicare to coordinate your benefits. To get a Medigap plan, you must first be enrolled in both Medicare Part A and Part B. Once you have your Medigap policy, the payment process is straightforward. When you receive medical care, Medicare pays its share of the approved costs first. Then, your Medigap policy steps in to pay its portion, which could be your deductible, coinsurance, or copayment, depending on the plan you choose. This partnership helps reduce your out-of-pocket expenses and provides more predictable healthcare costs.

Which Medicare Gaps Can Medigap Fill?

The primary job of a Medigap plan is to cover out-of-pocket costs that can add up quickly with Original Medicare. These gaps include things like your Part A hospital deductible, which you have to pay for each benefit period, and the 20% coinsurance for most doctor services and outpatient care under Part B. Different Medigap plans cover different combinations of these costs. Some plans might cover all of your Part B coinsurance, while others might also cover costs for skilled nursing facility care or even emergency medical care when you’re traveling abroad. You can compare Medigap plan benefits side-by-side to see exactly which gaps each one covers.

What Do Medigap Plans Cover?

Medigap plans are designed to fill the “gaps” in Original Medicare, but not all plans fill the same gaps. The federal government standardizes the plans, which means a Plan G from one insurance company offers the same basic benefits as a Plan G from another. The main difference will be the price.

Understanding what’s included in every plan versus what’s unique to specific plans is the first step in finding the right fit for your healthcare needs and budget.

The Core Benefits of Every Medigap Plan

Think of this as the core package. No matter which of the 10 Medigap plans you choose, you can count on it covering a few key costs. Every single Medigap plan provides coverage for your Medicare Part A coinsurance and hospital costs for up to an additional 365 days after your Original Medicare benefits are used up. This is a significant benefit that protects you from long, costly hospital stays.

Additionally, all plans offer at least partial coverage for Medicare Part B coinsurance or copayments, Part A hospice care coinsurance or copayments, and the first three pints of blood if you need a transfusion. These foundational benefits ensure a solid layer of protection beyond what Original Medicare provides.

What Makes Each Medigap Plan Different?

This is where you’ll want to pay close attention. The differences between the plans determine how much you’ll pay out of pocket for certain services. For example, while all plans cover Part B coinsurance to some degree, most cover it at 100%. Plans K and L, however, require you to share the cost until you meet an annual out-of-pocket limit.

Other key differences include coverage for the Part B deductible (only available in plans for those eligible for Medicare before 2020) and Part B excess charges (when a doctor charges more than the Medicare-approved amount). Only Plans F and G cover excess charges. Some plans also offer a benefit for foreign travel emergencies, which is a must-have for frequent travelers.

What Medigap Plans Don’t Cover

While Medigap plans are fantastic for covering many out-of-pocket costs, it’s just as important to understand what they leave out. Medigap is designed to cover costs for services that Original Medicare approves. If Medicare doesn’t cover a service, your Medigap plan generally won’t either. This means routine care like dental and vision exams, eyeglasses, and hearing aids are not included. Similarly, Medigap plans don’t pay for long-term care, such as extended stays in a nursing home, or private-duty nursing. Knowing these limitations helps you plan for your total healthcare expenses.

One of the most common points of confusion is prescription drug coverage. To be clear, Medigap plans sold today do not cover prescription drugs. For that, you’ll need to enroll in a separate Medicare Part D plan to get help with medication costs. It’s crucial to sign up for a Part D plan when you first become eligible, as waiting can result in a lifelong late enrollment penalty added to your monthly premium. Even if you don’t take many prescriptions now, securing a plan is a smart move. This ensures you have comprehensive coverage for both your medical and prescription needs.

Breaking Down the 10 Medigap Plan Options

When you start looking at Medigap, you’ll see plans labeled with letters, from A through N. It might seem like alphabet soup at first, but there’s a simple and helpful system behind it. There are 10 standardized Medigap plans available in most states.

So, what does “standardized” actually mean for you? It means that the benefits for each plan letter are the same, no matter which insurance company sells it. For example, a Medigap Plan G from one company has the exact same basic benefits as a Plan G from another company. This makes it much easier to compare plans based on what they cover.

While the benefits are standardized, the price is not. The monthly premium you pay can vary significantly from one insurance company to the next, even for the same exact plan. That’s why it’s so important to shop around. The key is to first figure out which plan letter has the benefits that fit your health needs and budget, and then find the company that offers that plan at the best price. This approach helps you get the right coverage without overpaying.

Comparing Plans A Through N

Each of the 10 Medigap plans offers a different combination of benefits to help pay for costs not covered by Original Medicare. While the mix of coverage varies, all plans provide certain core benefits. For instance, every single Medigap plan covers your Medicare Part A coinsurance and hospital costs for up to an additional 365 days after your Medicare benefits are used up.

Beyond that, the plans start to differ. Most plans will fully cover your Part B coinsurance or copayments, but some may only cover a percentage. Other benefits, like the Part A deductible or skilled nursing facility care coinsurance, are covered by some plans but not others. You can compare plan benefits side-by-side using official charts to see exactly what each lettered plan includes.

Medigap Plan G: The Most Comprehensive Coverage

For many people new to Medicare, Plan G is the top choice, and for good reason. It’s considered the most comprehensive option available, offering fantastic coverage that leads to very predictable healthcare costs. With Plan G, you’re covered for nearly all the out-of-pocket expenses that Original Medicare leaves behind. This includes your Part A deductible for hospital stays and the 20% coinsurance for doctor visits and other outpatient services. This level of coverage provides significant peace of mind, knowing you won’t face a mountain of bills after receiving care.

The only “gap” that Plan G doesn’t cover is the annual Medicare Part B deductible. This is a relatively small amount you pay once per year for your medical services. After you’ve met that deductible, Plan G picks up 100% of the remaining costs for Medicare-covered services. If you want robust coverage and prefer a straightforward monthly premium without worrying about surprise copayments, Plan G is an excellent option that simplifies your healthcare budget.

Medigap Plan N: A Lower-Premium Option

If you like the sound of strong coverage but would prefer a lower monthly premium, Medigap Plan N is a fantastic alternative. It offers much of the same protection as Plan G but with a few key differences that help keep your monthly costs down. In exchange for the lower premium, you agree to handle some small, predictable copayments. This typically means paying up to $20 for some doctor’s office visits and a $50 copayment for emergency room visits (though this is waived if you’re admitted to the hospital).

The other notable difference is that Plan N does not cover Part B excess charges. This is a rare situation where a doctor charges more than the Medicare-approved amount. While most doctors accept Medicare’s payment as full payment, it’s something to be aware of. For healthy individuals who don’t mind small, occasional copays, Plan N strikes a great balance between comprehensive coverage and affordable monthly premiums, making it a very popular choice.

What About High-Deductible Plans?

If you’re generally healthy and prefer a lower monthly premium, a high-deductible Medigap plan might be a good fit. Currently, Plans F and G are available as high-deductible options. With these plans, you are responsible for paying all of your Medicare-covered costs—like copayments and deductibles—up to a certain amount each year.

For 2025, that deductible is $2,870. Once you’ve met that deductible, your Medigap plan kicks in and starts paying for your covered services for the rest of the year. This trade-off means you’ll pay less each month for your premium, but you’ll have higher out-of-pocket costs if you need medical care. It’s a practical choice for those who want a safety net for major health issues but can handle smaller costs themselves.

Which Plans Are Most Popular?

For years, Plans C and F were the most popular choices because they offered the most comprehensive coverage. However, a change in federal law means that if you became eligible for Medicare on or after January 1, 2020, you can no longer buy Plan C or Plan F. If you were eligible for Medicare before that date, you might still be able to buy one of these plans.

Because of this change, Plan G has become the go-to option for many new Medicare beneficiaries. It offers nearly the same level of comprehensive coverage as the old Plan F—the only difference is that you have to pay the annual Medicare Part B deductible yourself. After you’ve met that deductible, Plan G covers the gaps just like Plan F did, making it an excellent choice for predictable, robust coverage.

Which Companies Offer Medigap Plans?

Dozens of private insurance companies sell Medigap plans, and while the plan benefits are standardized, the companies themselves are not. This is where your decision-making process gets a little more personal. Since a Plan G from Company A has the same basic medical benefits as a Plan G from Company B, your choice will likely come down to three key factors: the monthly premium, the company’s history of rate increases, and its reputation for customer service. Some companies are known for their rock-solid stability, while others might offer lower initial premiums or unique member perks.

Shopping around is the single most important thing you can do to find the best value. Because rates for the exact same plan can vary by hundreds of dollars a year depending on the company, getting quotes from several different insurers is essential. This is also where working with an independent agent can be incredibly helpful. At The Big 65, we can provide you with quotes from all the top-rated companies in your area, giving you an unbiased look at your options. Below are a few of the major companies you’ll likely come across in your search.

AARP / UnitedHealthcare

As one of the largest and most recognized names in the industry, AARP’s partnership with UnitedHealthcare offers a dependable choice for Medigap coverage. They are particularly known for reliable and stable premiums, which is a significant advantage for anyone managing a budget in retirement. This stability helps you plan your expenses without worrying about sudden, steep rate hikes. With coverage available in all 50 states, their plans are an excellent fit for travelers or “snowbirds” who spend parts of the year in different locations. On top of the solid insurance, you also get access to AARP member benefits, which can include valuable discounts on things like vision care, dental services, and hearing aids.

Mutual of Omaha

Mutual of Omaha has built a stellar reputation over decades for its financial strength and customer-focused approach. One of their most popular features is a generous household discount, which can reduce your premium by up to 12% if you live with a spouse, partner, or another adult—they don’t even have to be insured with Mutual of Omaha. This can translate into hundreds of dollars in savings each year. Beyond the attractive pricing, the company consistently receives very few customer complaints. This is a strong indicator that when you need to use your Medigap coverage, you can expect a smooth, hassle-free process, which provides invaluable peace of mind.

State Farm

While you may know State Farm for home and auto insurance, they are also a formidable player in the Medigap market, largely due to their outstanding customer service. Industry reports show that State Farm customers rarely file complaints about their plans, which speaks volumes about their commitment to policyholders. This often means you can expect helpful representatives and an efficient claims process when you need it most. In certain areas, especially those with higher-than-average insurance costs, State Farm’s rates can be very competitive. For those who value a trusted brand name and a proven track record of excellent service, State Farm is a fantastic option to consider.

Anthem

Anthem stands out from the crowd by offering a convenient feature that most other Medigap companies do not: the ability to add dental and vision coverage directly to your policy. Since Original Medicare and most Medigap plans don’t cover routine dental exams, glasses, or contacts, these common expenses are typically paid for out-of-pocket. Anthem simplifies this by allowing you to bundle these benefits, giving you more comprehensive coverage under a single plan. They are also known for offering low prices for the popular Plan G, making it possible to get robust medical, dental, and vision coverage all in one place. If you’re looking to add this coverage, Anthem is a top contender.

Cigna

Cigna is a great choice for those looking for a blend of competitive pricing and proactive health benefits. They often feature some of the most attractive rates on the market and provide several ways to save even more, including household discounts and, in some cases, a discount for enrolling online. But Cigna’s value goes beyond just the premium. The company has a strong focus on wellness, providing members with access to programs like fitness center discounts and a 24/7 health information line. This commitment shows they are invested in helping you stay healthy, not just in paying claims. This makes Cigna a compelling insurance provider for anyone who wants great value and support for a healthy lifestyle.

Wellabe

If finding the most budget-friendly premium is your main goal, Wellabe is a company that should be on your radar. They have built a reputation for offering some of the most competitive prices available for Medigap’s most popular options, Plan G and Plan N. While the name might not be as familiar as some of the other giants in the industry, it’s crucial to remember that Medigap plans are standardized by the government. This means a Plan G from Wellabe provides the exact same basic medical benefits as a Plan G from any other company. By consistently offering some of the cheapest prices, Wellabe delivers a smart financial choice for getting top-tier coverage without the big-brand price tag.

Do You Qualify for a Medigap Plan?

Thinking about a Medigap plan is a great step toward managing your healthcare costs with more predictability. But before you start comparing the different lettered plans, you need to make sure you qualify. The requirements might seem simple at first, but timing plays a surprisingly huge role. Your eligibility isn’t just about having Original Medicare; it’s also about when you apply. This is because certain windows of time give you special protections that make it much easier to get the plan you want, regardless of your health history.

Missing this window can mean that insurance companies can ask you detailed health questions and potentially deny you coverage or charge you more based on your answers. This is why understanding the rules from the start is so important. It’s the key to getting the right coverage without any surprises or roadblocks. Let’s walk through the basics of eligibility, why your initial enrollment period is the best time to act, and what special rights you have as a Medicare beneficiary. Knowing this information will put you in control of your Medigap decision.

Who Is Eligible for Medigap?

First things first, to be eligible for any Medigap plan, you must be enrolled in Medicare Part A and Part B. Think of it this way: Medigap is a supplement, so you need to have the original policy first for it to supplement. It’s designed specifically to fill the “gaps” in your Original Medicare coverage, like deductibles and coinsurance. If you only have Part A or are enrolled in a Medicare Advantage plan instead of Original Medicare, you won’t be able to purchase a Medigap policy. This foundational step is non-negotiable, so confirming your enrollment in both Part A and B is your starting point.

Why Your Open Enrollment Period Is So Important

This is the most critical piece of the puzzle. Your Medigap Open Enrollment Period is a one-time, six-month window that begins on the first day of the month you’re 65 or older and enrolled in Part B. During this golden window, you have what are called “guaranteed issue rights.” This means any insurance company offering Medigap plans in your state must sell you any plan they offer, and they can’t use medical underwriting. They can’t ask about your health history or charge you more because of pre-existing conditions. Missing this period means you lose these federal protections, and getting a policy later could be more difficult and expensive.

What Are Guaranteed Issue Rights?

Guaranteed issue rights are special protections that ensure you can purchase a Medigap policy under certain circumstances, even if your six-month Open Enrollment Period has passed. These rights apply in specific situations, such as if you lose other health coverage. For example, if your employer-sponsored plan ends or you move out of your Medicare Advantage plan’s service area, you may get a special window to buy a Medigap plan. During this time, insurance companies must sell you a policy without considering your health status. Understanding these guaranteed issue protections is crucial because they provide a safety net, ensuring you can still get coverage when life changes unexpectedly.

Are There State-Specific Medigap Rules?

While Medigap plans are standardized at the federal level, which makes comparing them much simpler, a handful of states have their own unique rules. This is an important detail to be aware of because these state-specific regulations can change how and when you can buy a policy. For the most part, the lettered plans you see are consistent across the country, but knowing if your state has a special enrollment window or a completely different set of plans is crucial. These exceptions don’t complicate things too much, but they do mean you’ll want to pay extra attention to your local guidelines to make sure you’re taking advantage of all the opportunities available to you.

The Medigap “Birthday Rule”

A great example of a state-specific rule is the “Birthday Rule.” In some states, you get a special open enrollment window every year around your birthday. During this time, you can switch from your current Medigap plan to another one with the same or fewer benefits without having to answer any health questions. This is a fantastic opportunity if you find a plan with a lower premium or decide you no longer need the level of coverage you currently have. States like California, Oregon, and Nevada offer this perk, but the exact timing and rules can vary. It’s a valuable protection that gives you the flexibility to re-evaluate your coverage annually.

Unique Plans in MA, MN, and WI

If you live in Massachusetts, Minnesota, or Wisconsin, you can set aside everything you’ve learned about Plans A through N. These three states have their own system for Medigap. Instead of the standard lettered plans, they offer their own unique sets of policies. For example, Massachusetts has a Core Plan and a Supplement 1 Plan, while Minnesota and Wisconsin both start with a “Basic” plan that you can build upon with optional riders. The benefits are still standardized within each state, but you’ll be looking at a different menu of options. This is one of those areas where the details really matter, as the Medigap plans available to you are completely different from those in the rest of the country.

When Should You Enroll in Medigap?

Timing is one of the most critical factors when buying a Medigap plan. While you can technically apply for a policy at any time, there is a specific, one-time window when you have special protections. Enrolling during this period ensures you can get any plan you want, regardless of your health history. Missing this window can make it much harder—and more expensive—to get coverage later on.

Think of it as a golden ticket for Medigap. This initial enrollment period is your best opportunity to secure a plan that fits your needs without facing health-related hurdles. Let’s walk through when this period occurs and why it’s so important to act during that time. Understanding these rules will help you make a confident decision and avoid potential pitfalls down the road.

The Best Time to Apply for a Medigap Policy

The ideal time to buy a Medigap policy is during your six-month Medigap Open Enrollment Period. This is a one-time window that automatically starts on the first day of the month you are both 65 or older and enrolled in Medicare Part B. During these six months, an insurance company cannot use your health history to make decisions about your policy. This means they must sell you any Medigap plan they offer, cannot charge you more because of health problems, and cannot make you wait for coverage to start. It’s a powerful protection that makes getting the right coverage straightforward.

What to Expect from Medical Underwriting

If you apply for a Medigap plan outside of your Open Enrollment Period, insurance companies can generally require medical underwriting. This is a process where the insurer reviews your health history, including pre-existing conditions, to assess their risk in covering you. Based on this review, they can legally charge you a higher premium than someone with a clean bill of health. In some cases, they can even deny your application for coverage altogether. This is why your initial six-month window is so valuable—it allows you to bypass this entire process and get the plan you want without any health questions asked.

What Happens If You Apply Later?

Waiting to enroll can have significant consequences. Once your six-month Medigap Open Enrollment Period ends, so do your federal protections. These guaranteed issue protections are what ensure you can buy any plan sold in your state. If you miss this window, you lose that guarantee. You may find that your plan options are limited, the premiums are much higher, or you are unable to purchase a Medigap policy at all. While some situations grant you special enrollment rights later, relying on them is risky. Taking action during your initial window is the surest way to secure your coverage.

How to Choose the Best Secondary Insurance for Medicare

Choosing a Medigap plan feels like a big decision because it is. The right plan for you will depend on your personal health needs, your budget, and how much financial risk you’re comfortable with. While there are ten different options to consider, breaking the process down into a few simple steps can make it much more manageable. By thinking through your needs, comparing your options, and researching the companies behind the plans, you can find coverage that gives you peace of mind for years to come.

First, Consider Your Personal Health Needs

First, take a realistic look at your health. It’s easy to focus on how you feel today, but it’s wise to plan for the unexpected. As you evaluate your healthcare needs, think about your current health status, any chronic conditions you manage, and your family’s medical history. Do you anticipate needing more medical care in the future? Also, consider your financial situation. Would a surprise medical bill be a major setback? Some people prefer a higher monthly premium for more predictable costs, while others are comfortable with a lower premium and potentially paying more out-of-pocket if they need care. This is about finding the right balance for your health and your wallet.

Compare Plan Benefits Side-by-Side

Once you have a good idea of your needs, it’s time to see how the plans stack up. The great thing about Medigap is that the plans are standardized. That means a Plan G from one company has the exact same basic benefits as a Plan G from another. This makes it much easier to compare your options. The best way to do this is with a side-by-side chart. You can compare Medigap plan benefits to see exactly what each one covers, from the Part A deductible to skilled nursing facility care. This visual layout helps you quickly identify which plans offer the level of coverage you’re looking for.

Why It Pays to Compare Your Options Annually

Even after you’ve chosen a Medigap plan, it’s a smart habit to review your options each year. While the benefits of your Plan G will always be the same as any other Plan G, the monthly premium you pay can change. Insurance companies adjust their rates, and the price for the exact same coverage can vary significantly from one carrier to another. In fact, many people miss out on potential savings of hundreds or even thousands of dollars a year simply because they don’t compare plans. Taking a few minutes to check prices from different companies in your area ensures you’re not overpaying for your coverage. It’s a simple step that can have a big impact on your budget.

How to Vet Medigap Insurance Companies

After you’ve narrowed down your choices to one or two lettered plans, the final step is to look at the insurance companies offering them. Since the benefits are the same, your decision will likely come down to price and service. It’s important to compare costs from different insurance companies to find the best price for the plan you want. But don’t stop at the premium. Look into the company’s reputation for customer service and its history of rate increases. Some companies are known for more stable pricing over time. Reading reviews and checking financial strength ratings can give you a clearer picture of the company you’ll be working with.

Check Financial Strength Ratings

An insurance company’s financial strength rating is like a report card on its financial health. It tells you how likely the company is to be able to pay its claims, both now and in the future. This is incredibly important because you’re buying a Medigap plan for long-term peace of mind. A company with a high rating from agencies like A.M. Best, Moody’s, or S&P Global Ratings is considered financially stable and more likely to keep its promises and maintain more predictable premiums over time. While a low premium is attractive, it won’t mean much if the company struggles to pay your bills down the road. Taking a moment to check these ratings helps ensure you’re partnering with a reliable company that will be there for you when you need it most.

How Much Do Medigap Plans Cost?

Let’s talk about the bottom line: what will a Medigap plan actually cost you? The price isn’t one-size-fits-all. Think of it like shopping for car insurance—the final number depends on the coverage you choose, the company you go with, and even where you live. While two different companies might offer the exact same Plan G benefits, their monthly premiums can be surprisingly different.

Understanding these moving parts is the first step to finding a plan that fits your budget without sacrificing the coverage you need. We’ll walk through what influences your premium, how to account for all your costs, and the best way to find a more affordable rate.

What Affects Your Monthly Premium?

The cost of Medigap policies can vary quite a bit, even for identical plans. Insurance companies set their own prices, so you’ll see different premiums for the same lettered plan. The main factors that influence what you’ll pay each month are the insurance company’s pricing structure, the specific plan you choose (for example, Plan G versus Plan N), and your location. A plan in a major city might cost more than the same plan in a rural area. It’s a good idea to compare costs from several companies to see what the range looks like in your state.

How Premiums Are Priced

Insurance companies use one of three different methods to set their premiums, which is why you’ll see such a wide range of prices for the exact same plan. The most common is attained-age rated, where your premium starts lower and increases as you get older. Another is issue-age rated, where the premium is based on your age when you first buy the policy and won’t go up just because you have a birthday. The third is community-rated, where everyone in a certain area pays the same premium, regardless of age. Understanding these pricing methods is key because it helps you anticipate how your costs might change over time. A plan that looks like the cheapest option today might not be the most affordable in the long run.

What Are Your Potential Out-of-Pocket Costs?

When you’re mapping out your retirement budget, it’s important to remember that your Medigap premium is a separate expense. You will pay this monthly premium directly to your private insurance company, and it’s in addition to the monthly Part B premium you pay to Medicare. These two costs together form the foundation of your healthcare expenses under Original Medicare with a Medigap plan. Factoring both into your financial planning helps prevent surprises down the road and ensures your healthcare coverage remains affordable and predictable. This approach allows you to fully appreciate the peace of mind your Medigap plan provides.

Average Medigap Premiums

So, what does a typical Medigap plan cost? While prices vary, it helps to have a ballpark figure in mind. In 2023, the average monthly premium for a Medigap policy was $217, which adds up to $2,604 for a full year of coverage. However, that’s just an average. Your actual cost can depend heavily on where you live, with premiums ranging from a low of $191 in Alaska to a high of $267 in New York. This is because private insurance companies set their own prices, even for the exact same standardized plan. This is why it’s so important to compare prices from different companies. Once you decide on the plan letter that fits your needs, your goal is to find the insurer offering it at the most competitive rate.

How to Find a More Affordable Premium

The single best way to secure a good price is to shop for your plan during your Medigap Open Enrollment Period. This six-month window starts the month you’re 65 or older and enrolled in Part B. During this time, insurance companies cannot use medical underwriting. That means they can’t refuse to sell you a plan or charge you more because of pre-existing health conditions. This is your golden ticket to getting any plan sold in your state at the best possible price. Comparing quotes from different insurance companies during this period is the key to finding a more affordable premium.

Look for Available Discounts

Don’t overlook one of the simplest ways to lower your monthly premium: discounts. Many insurance companies offer them, but they aren’t always advertised upfront. The most common is a household discount, which you may qualify for if your spouse or another adult in your home also enrolls in a plan with the same company. The savings can be substantial; for example, some companies offer household discounts as high as 12%. You might also find savings for paying your premium annually instead of monthly or for completing your enrollment online. Since these offers vary by company and state, make it a point to ask about available discounts when you get a quote.

How Medigap Works with Other Insurance

Understanding how a Medigap plan fits into your overall health coverage is a crucial step. You might have Original Medicare, be thinking about drug coverage, or even still have a plan from your employer. It’s not always clear how these different pieces work together. The key is knowing that Medigap is designed to work with Original Medicare, but it doesn’t replace other types of insurance you might need. Let’s walk through how Medigap interacts with other common coverage options so you can see the full picture.

Medigap vs. Medicare Advantage: Key Differences

One of the most common points of confusion is the difference between Medigap and Medicare Advantage. Think of it this way: you can have one or the other, but not both. A Medigap policy is a true supplement—it works alongside your Original Medicare (Part A and Part B) to help pay for out-of-pocket costs like deductibles and coinsurance. On the other hand, a Medicare Advantage plan is an alternative way to get your Medicare benefits. It replaces Original Medicare, bundling your Part A and B coverage into a single plan offered by a private insurance company.

Do You Still Need a Part D Plan?

This is a question I hear all the time, and the answer is a clear “yes.” If you take any prescription medications, you will need a separate prescription drug plan, also known as Part D. Medigap plans sold today do not cover prescription drugs. Their job is to help with the costs of your medical services under Part A and Part B, not your medications from the pharmacy. To get that coverage and avoid a potential late enrollment penalty, you’ll need to sign up for a standalone Part D plan. This ensures you have comprehensive coverage for both your doctor visits and your prescriptions.

A Note on Future Part D Changes

It’s also helpful to know that Medicare rules can change, and a significant update is coming for prescription drug coverage. Starting in 2026, there will be a new cap on out-of-pocket drug costs for everyone with a Part D plan. This means that after you spend a certain amount on your medications in a year, you won’t have to pay anything more for your covered prescriptions for the rest of that year. This change offers a valuable financial safety net, especially for those with high-cost medications. It’s a positive update to keep in mind, but it doesn’t change the need for a separate Part D plan to work with your Medigap policy.

Can You Have Medigap and Employer Insurance?

If you’re still working past 65 and have health coverage through your job, you might wonder if Medigap makes sense. It can. In this situation, your employer plan is typically the “primary payer,” meaning it pays your health claims first. After your employer plan pays its share, Medicare pays second. A Medigap policy could then step in to cover costs that are left over, like deductibles and copays. It’s important to figure out if the monthly Medigap premium is worth the extra coverage you’d get. Understanding how Medicare works with other insurance is the first step to deciding if this strategy is right for you.

Avoid These Common Medigap Mistakes

Medigap can feel like a puzzle, but it doesn’t have to be. Once you understand the basics, the pieces start to fit together. A big part of getting it right is knowing what to watch out for. Let’s walk through a few common trip-ups so you can feel confident in your decision and choose a plan that truly works for you.

Myth: Medigap Covers Prescription Drugs

This is one of the most frequent points of confusion. While it seems like a “supplement” plan would cover everything, Medigap policies sold today do not include prescription drug coverage. Original Medicare (Parts A and B) doesn’t cover most prescriptions you take at home, and Medigap is designed to fill the gaps in Original Medicare—not add new benefits. To get help with your medication costs, you’ll need to enroll in a separate Medicare Part D plan. Think of it as a separate but essential piece of your overall healthcare coverage.

Mistake: Missing Your Enrollment Window

Timing is everything when it comes to Medigap. You have a golden opportunity to enroll, and it’s called your Medigap Open Enrollment Period. This six-month window starts on the first day of the month you’re 65 or older and enrolled in Medicare Part B. During this time, insurance companies can’t use your health history to charge you more or deny you coverage. It’s your one-time pass to get any plan you want. If you miss this window, you may have to answer health questions, and companies could refuse to sell you a policy.

Mistake: Choosing a Medigap Policy on Price Alone

It’s tempting to just pick the plan with the lowest monthly premium, but that can be a shortsighted move. Here’s why: Medigap plans are standardized. That means a Plan G from one company has the exact same benefits as a Plan G from another. However, the prices they charge can be wildly different. It’s smart to compare costs, but you should also look at the company’s history of rate increases and its reputation for customer service. A super-low introductory rate might not stay low for long. Your goal is to find a plan that offers stable, long-term value from a company you can trust.

Need Help Choosing a Medigap Policy?

Choosing a Medigap plan is a significant decision, and you don’t have to make it alone. Sorting through the different plans, rules, and insurance companies can feel like a full-time job. The good news is that there are several reliable resources available to provide clarity and personalized guidance. Whether you prefer to do your own research with official tools or talk through your options with an expert, help is available. Taking the time to find the right support can give you confidence that you’re selecting a plan that truly fits your life.

Start with Official Medicare Resources

The best place to start your research is often with the source itself. Medicare provides official, unbiased information to help you understand your options. You can use Medicare’s comparison tool to explore and compare the plans available in your area. It’s a straightforward way to see which benefits are included in each standardized plan, helping you find the coverage that best fits your needs. The annual “Medicare & You” handbook is another excellent resource that breaks down how Medigap works with Original Medicare. These government-provided tools are free to use and can give you a solid foundation of knowledge before you make a final decision.

Contact Your State’s SHIP Program

Every state has a State Health Insurance Assistance Program, or SHIP, that offers free and impartial counseling to people with Medicare. SHIP counselors are highly trained volunteers who can answer your specific questions about Medigap policies, enrollment periods, and your rights. They can help you understand complex rules, like the guaranteed issue protections you have during your one-time, six-month Medigap open enrollment period. Because SHIPs are not affiliated with any insurance company, you can trust that their advice is completely unbiased. You can find your local SHIP office to schedule a phone or in-person appointment.

Talk with an Independent Insurance Agent

If you’d like more personalized guidance, speaking with an independent insurance agent can be incredibly helpful. Unlike agents who work for a single company, independent agents can offer plans from multiple insurance carriers. This gives you a much broader view of your options. You can buy a Medigap policy from any insurance company that’s licensed in your state, and a good agent will help you compare the costs and reputations of those companies. They will take the time to understand your health needs and budget to help you find the right fit. This one-on-one support can simplify the entire process and ensure all your questions are answered.

A Note of Caution on Large Brokers

You’ve likely seen commercials for large, national insurance brokers. While they can be a resource, it’s worth remembering that you might be speaking with someone in a large call center whose main goal is to meet a sales quota. This can sometimes lead to a focus on the lowest-priced plan without a deeper conversation about the insurance company’s history of rate increases or its customer service reputation. Choosing a plan based on price alone can be a shortsighted move. The alternative is to find a dedicated agent who takes the time to understand your specific needs. This ensures you can fully vet Medigap insurance companies and find a plan that offers stable, long-term value, not just the cheapest premium today.

Frequently Asked Questions

What’s the real difference between a Medigap plan and a Medicare Advantage plan? Think of it this way: a Medigap plan works with your Original Medicare as a partner, while a Medicare Advantage plan is an alternative that replaces it. Medigap helps pay for the out-of-pocket costs that Original Medicare leaves behind, like deductibles and coinsurance. A Medicare Advantage plan bundles your Part A and Part B benefits into a single plan run by a private insurer, often with its own network of doctors and hospitals. You can have one or the other, but you can’t have both at the same time.

I’m healthy. Do I really need to buy a Medigap plan right when I turn 65? This is a great question, and the timing is more important than you might think. Your six-month Medigap Open Enrollment Period when you first get Part B is your one-time golden ticket. During this window, insurance companies can’t ask you about your health history or charge you more for pre-existing conditions. If you wait, you lose that protection. While you might be healthy now, applying later means you’ll likely have to go through medical underwriting, which could lead to higher premiums or even being denied coverage.

If all the plans with the same letter are identical, should I just pick the one with the lowest price? While it’s tempting to go for the lowest monthly premium, price shouldn’t be the only factor. It’s true that a Plan G from one company has the same basic benefits as a Plan G from another. However, the companies themselves are different. It’s wise to also look at a company’s history of rate increases and its reputation for customer service. A plan with a very low introductory rate might see larger price hikes down the road, so finding a stable, reputable company can provide better long-term value.

Will my Medigap plan cover my prescription drugs? No, this is a common point of confusion. Medigap plans sold today are designed to fill the gaps in your medical coverage under Original Medicare Parts A and B, not your pharmacy costs. To get coverage for your medications, you will need to enroll in a separate Medicare Part D prescription drug plan. Think of your Part D plan as another essential piece of your complete healthcare coverage.

I missed my initial six-month enrollment window. Can I still get a Medigap plan? It is possible, but it’s not guaranteed. Once your Open Enrollment Period ends, insurance companies can generally require you to answer health questions and go through medical underwriting. Based on your health history, they can charge you a higher premium or deny your application. There are some specific situations, like losing employer coverage, that grant you “guaranteed issue rights” to buy a plan later. However, relying on these exceptions is risky, which is why enrolling during your initial window is always the best approach.