Choosing the best Medicare supplement plans is a critical step in protecting your health and your budget. Many people search for what is the best Medicare supplement plan because Original Medicare leaves gaps like deductibles, copayments, and coinsurance.
This is why finding the best medicare supplement matters so much. These plans step in to cover the expenses that Medicare doesn’t, giving you predictable costs and greater peace of mind. This guide will help you compare options, understand how they work, and make the best choice for your coverage.
Key Takeaways
- Focus on price and company, not just the plan letter: Since Medigap plans are standardized, a Plan G from one insurer has the same basic benefits as a Plan G from another. Your decision should center on finding a competitive monthly premium from a company with a strong reputation for service.
- Match your coverage to your personal needs: The right plan is a balance between your health, budget, and comfort with risk. Decide if you prefer the predictable spending of a comprehensive plan like Plan G or the lower premiums and cost-sharing of a plan like Plan N.
- Don’t miss your one-time enrollment window: Your six-month Medigap Open Enrollment Period is the most important deadline. During this time, you have guaranteed issue rights to buy any plan, regardless of your health. Missing it could lead to higher costs or being denied coverage later.
What is a Medicare Supplement (Medigap) Plan?
If you’ve ever wondered what is the best medicare supplement plan, it starts with understanding how these policies work.
Original Medicare does not pay for every cost you are still responsible for deductibles, coinsurance, and copayments. The best medicare supplement helps fill these gaps by covering many of the costs Medicare leaves behind. With the right choice from the best medicare supplement plans, you can reduce financial surprises and make your healthcare spending more predictable.
These plans are sold by private insurance companies but are standardized by the federal government. This means that a Plan G from one company offers the same basic benefits as a Plan G from another—the main differences you’ll see are the monthly premium and the company’s customer service.
Understanding how these plans work alongside your existing Medicare coverage is the first step in deciding if one is right for you. It’s all about finding a balance between what you pay each month and how much financial protection you want for the future.
How Medigap works with Original Medicare
Think of Original Medicare and Medigap as a team. When you visit a doctor or hospital that accepts Medicare, Original Medicare pays its approved share of the costs first. After that, your Medigap plan steps in to pay its portion, which can include deductibles, coinsurance, and other out-of-pocket expenses. This partnership helps protect you from large, unexpected medical bills if you get seriously ill or need extensive care.
A Medigap policy only works with Original Medicare. It cannot be used with a Medicare Advantage plan. You pay a separate monthly premium to the private insurance company for your Medigap plan, in addition to your Part B premium. In return, you get the peace of mind that comes with more predictable healthcare costs and the freedom to see any doctor who accepts Medicare patients.
What Medigap plans cover (and what they don’t)
Medigap plans are designed to cover your share of costs from Medicare-approved services. This includes things like your Part A hospital deductible, Part B coinsurance (typically 20% of outpatient costs), and even emergency medical care when you travel outside the U.S. However, Medigap plans generally don’t cover services that Original Medicare doesn’t, such as long-term care, dental, vision, or hearing aids. For those, you would need separate insurance policies.
There are 10 standardized plans available in most states, labeled A, B, C, D, F, G, K, L, M, and N. Each lettered plan offers a different level of coverage. It’s important to know that Plans C and F are no longer available to people who became eligible for Medicare on or after January 1, 2020. You can compare Medigap plans side-by-side to see which one best fits your needs.
Clearing up common Medigap myths
One of the biggest myths about Medigap is that you have to find a company whose plan is “better” than another’s. Because Medigap plans are standardized, they offer the same basic benefits regardless of the insurance company selling them. A Plan G is a Plan G, period. The primary differences are the monthly premium you’ll pay and the company’s reputation for service.
Another misconception is that you automatically need the most comprehensive plan available. The best Medigap plan is simply the one that fits your specific situation. Choosing a policy is a personal decision that requires you to carefully consider your current health, potential future needs, and your budget. Don’t just look at the monthly premium; think about the total out-of-pocket costs you could face with each option.
A Look at the Different Medigap Plans
When you first see the list of Medigap plans, it can feel like you’re staring at a bowl of alphabet soup. But don’t worry, there’s a method to the madness.
Each lettered plan—from A to N—is designed to cover different out-of-pocket costs that Original Medicare leaves behind. Think of them as different-sized puzzle pieces. Your job is to find the one that fits perfectly with your healthcare needs and budget. Let’s walk through what these plans are, how they’re structured, and the single most important rule that makes shopping for them much simpler than you might think.
Breaking down Plans A through N
There are 10 different Medigap plans available in most states, each identified by a letter: A, B, C, D, F, G, K, L, M, and N. While that sounds like a lot, they simply offer varying levels of coverage.
For example, Plan A provides basic benefits, covering your Part A and B coinsurance, while other plans add coverage for things like deductibles and foreign travel emergencies. It’s important to know that if you became eligible for Medicare on or after January 1, 2020, you can no longer purchase Plan C or Plan F. The good news is that there are excellent alternatives, like Plan G, that offer very similar, comprehensive coverage. You can compare the benefits of each plan side-by-side to see which one aligns with your needs.
High-deductible Plans F and G
For those who want to keep their monthly premiums low, high-deductible versions of Plan F and Plan G are an attractive option. Here’s the trade-off: in exchange for a lower monthly payment, you agree to pay for your Medicare-covered costs up to a certain amount—the deductible—before your Medigap plan begins to pay.
Once you’ve met that deductible, the plan pays 100% of your covered services for the rest of the year. This can be a smart financial choice if you’re in good health and don’t expect to need many medical services, but you still want a safety net for major, unexpected health events. It’s a way to balance your costs between fixed premiums and potential out-of-pocket spending.
The standardization rule: What it means for you
Here’s the best-kept secret of Medigap: the plans are standardized. This is a federal rule that makes your life so much easier.
It means that a Plan G from one insurance company has the exact same basic benefits as a Plan G from any other company. The same goes for Plan N, Plan A, and all the others.
So, what’s the difference? Price. The monthly premium you pay for the same plan can vary significantly from one insurer to the next. This allows you to focus your decision on two key things: finding a company with competitive pricing and a reputation for excellent customer service. This standardization of plans empowers you to shop with confidence, knowing you can compare apples to apples.
How the Most Popular Medigap Plans Compare
With ten standardized plans available in most states, you have plenty of options. But a few plans consistently stand out as the most popular choices for their value and coverage. Let’s walk through the plans you’ll hear about most often so you can see how they stack up.
Plan G: The go-to for new enrollees
If you became eligible for Medicare on or after January 1, 2020, Medigap Plan G is the most comprehensive coverage you can buy. It’s a favorite for a reason: it covers almost all of your out-of-pocket costs, including copayments, coinsurance, and hospital deductibles.
The only thing you’re responsible for is the annual Medicare Part B deductible. Once you’ve paid that, Plan G picks up 100% of the remaining costs for Medicare-covered services. This makes your healthcare spending incredibly predictable, which brings peace of mind to many retirees.
Plan N: A balance of lower premiums and cost-sharing
Think of Plan N as a great middle-ground option. It offers a lower monthly premium than Plan G, but it asks you to share a small portion of the costs.
With Plan N, you’ll still have to cover your Part B deductible. After that, you may have a copayment of up to $20 for some office visits and up to a $50 copayment for emergency room visits that don’t result in a hospital admission. If you’re in good health and don’t visit the doctor frequently, Plan N can be a smart way to save money on premiums while still having solid protection against major medical bills.
Plan F: The classic choice for those eligible
You might hear people talk about Plan F, and for a long time, it was the most popular plan available. It covers everything, including the Medicare Part B deductible, offering true first-dollar coverage.
However, federal law prevents companies from selling Plan F to anyone who became eligible for Medicare on or after January 1, 2020. If you were eligible for Medicare before that date, you might still be able to buy Plan F. For new enrollees, Plan G offers the same level of comprehensive coverage, just without paying for the Part B deductible.
Plans K and L: Lower premiums for more cost-sharing
If your top priority is keeping your monthly premium as low as possible, Plans K and L are worth a look. These plans require you to pay a higher percentage of your costs until you reach an annual out-of-pocket maximum.
For example, Plan K covers 50% of most costs, and Plan L covers 75%. Once you hit the out-of-pocket limit for the year, the plan pays 100% of your covered services. These plans are a good fit if you’re healthy and want a safety net for worst-case scenarios without paying for coverage you may not use often.
How to match a plan to your lifestyle
The best Medigap plan for you really comes down to your personal situation. Start by thinking about your health.
Do you have chronic conditions that require frequent doctor visits? If so, the predictable costs of Plan G might be worth the higher premium. If you’re in great health and want to save on monthly payments, Plan N could be a better fit.
It’s all about finding the right balance between what you pay each month and what you’ll pay when you receive medical care. Consider your budget and your comfort level with risk to find the plan that lets you sleep soundly at night.
How to Choose the Right Medigap Plan
Picking the right Medigap plan is a big decision, but it doesn’t have to be overwhelming. The goal is to match a plan to your specific situation—your health, budget, and lifestyle. Let’s walk through the most important factors so you can find a policy that gives you peace of mind.
Consider your health and future needs
Your current health is the best starting point. If you manage a chronic condition, a plan with more coverage might be worth the higher premium. It’s also wise to think about the future.
This is a deeply personal decision, so take time to assess your needs. A plan that seems like a bargain today might not provide the coverage you need in five years.
Weighing premiums vs. out-of-pocket costs
Every Medigap plan involves a trade-off between your monthly premium and what you pay for care. Higher-premium plans like Plan G cover most of your costs, while lower-premium plans like K and L require you to share more costs.
Think about your financial comfort zone. Would you prefer a predictable monthly payment with minimal surprise bills, or a lower premium knowing you might have to pay more out-of-pocket for services?
Check your doctor network and travel plans
One of Medigap’s best features is freedom. If a doctor accepts Original Medicare, they accept your Medigap plan. This lets you see specialists you trust anywhere in the country.
You should always confirm your doctors accept Medicare, but you won’t have to worry about restrictive networks. If you travel, look for a plan that includes foreign travel emergency coverage, a benefit Original Medicare doesn’t offer.
Know your enrollment deadlines and rights
Timing is everything. Your six-month Medigap Open Enrollment Period starts the month you’re 65 or older and enrolled in Part B. During this window, insurance companies cannot deny you a policy or charge more based on your health. These are your guaranteed issue rights.
If you miss this one-time opportunity, you could be denied coverage or face higher costs. Mark this period on your calendar—it’s the most important deadline in your Medigap journey.
What Do Medigap Plans Actually Cost?
When we talk about the cost of a Medigap plan, it’s about more than just the monthly bill. The true cost is a balance between your monthly premium and what you might pay out-of-pocket for care. Some plans have higher monthly premiums but cover nearly all your costs, giving you predictable expenses. Others have lower premiums but require you to pay for some services as you use them.
The key is finding the right balance for your budget and peace of mind. It’s not about finding the cheapest plan, but the one that offers the best value for your specific health and financial situation. Understanding how these costs work will help you make a confident choice without any surprises down the road.
Why premiums differ and what to expect later
You might notice that the price for the exact same Medigap plan, like a Plan G, can vary quite a bit between different insurance companies. That’s because each company sets its own prices based on factors like your location, age, and sometimes gender or tobacco use. This is why simply picking a plan letter isn’t enough; you have to see what different insurers are charging for that letter.
Your choice also comes down to your personal comfort with risk. If you prefer knowing that most of your healthcare costs are covered, you might choose a plan with more comprehensive coverage and a higher premium. It’s also smart to ask how a company prices its plans for the long term, as this will affect how much your premium might increase as you get older.
A simple guide to cost-sharing
“Cost-sharing” is just what it sounds like: you share some of the healthcare costs with your insurance plan. This comes in the form of deductibles, copayments, and coinsurance.
With Medigap, the amount of cost-sharing you’re responsible for depends entirely on the plan you choose. For example, plans like G and F are known for having very little cost-sharing, meaning fewer out-of-pocket surprises when you visit the doctor.
On the other hand, plans like K and L were designed with more cost-sharing to keep monthly premiums lower. You pay less each month, but you’ll pay a percentage of the cost for most services until you hit an annual out-of-pocket limit. A popular option for new enrollees, Plan G, requires you to pay the annual Medicare Part B deductible yourself, but after that, it picks up most of the remaining costs.
Smart ways to manage your Medigap costs
The single best way to manage your Medigap costs is to compare your options. Since Medigap plans are standardized, a Plan G from one company has the same basic benefits as a Plan G from another—but the price can be dramatically different. Taking the time to compare quotes is the most effective step you can take to find a plan that fits your budget.
This is where getting some expert guidance can make a world of difference. You don’t have to sort through all of this alone. Working with a licensed insurance agent gives you a partner who can run these comparisons for you. An independent agent can provide personalized advice, explain the fine print, and help you find the most cost-effective plan from a reputable company without any of the guesswork.
Find Your Ideal Medigap Plan
Finding the right Medigap plan doesn’t have to be overwhelming. The process is really about matching your personal needs with the right coverage. By thinking through your priorities, using helpful tools, and knowing which common mistakes to sidestep, you can confidently select a plan that gives you peace of mind. Let’s walk through the steps to get you there.
Define your healthcare priorities
Choosing a Medigap plan is a personal decision, so it’s important to start by thinking about your own situation. Take a moment to consider your health needs and your budget.
Ask yourself: How often do I typically visit the doctor? Do I have any chronic conditions that require regular care? What am I comfortable paying for a monthly premium versus what I might have to pay out-of-pocket for services?
Answering these questions will help you create a clear picture of what you need from a plan, making it much easier to narrow down your options and find a great fit.
Use helpful comparison tools and resources
Once you have a good sense of your priorities, you can start exploring your options. Medicare provides an official online tool to compare plans and prices available in your area, which is a great starting point.
As you look at different plans, remember that while the benefits of a certain plan letter are the same across carriers, the prices can vary. It’s always a good idea to check quotes from a few different insurance companies to ensure you’re getting a competitive price for the coverage you want. These resources give you a solid foundation for making an informed choice.
How a licensed insurance agent can help
While online tools are helpful, they don’t always tell the full story or offer guidance for your specific circumstances. This is where working with a licensed insurance agent can make a world of difference.
A knowledgeable agent can offer personalized advice tailored to your specific health needs and financial situation. Instead of you having to sort through dozens of web pages and brochures, an agent does the heavy lifting. They can help you compare plans from multiple companies, explain the fine print, and answer your questions in plain English, ensuring you find a plan that truly fits your life.
Avoid these common mistakes when choosing a plan
As you get closer to making a decision, it helps to know about the common slip-ups people make. One of the biggest is focusing only on the monthly premium while ignoring other potential costs like deductibles or copayments.
Another frequent error is not exploring all the available options and simply picking the first plan you see. It’s also critical to confirm that your doctors accept the plan, especially if you are considering a Medicare SELECT policy, which uses a specific provider network. Verifying these details upfront can save you from unexpected costs and headaches later on.
A Look at Top Medigap Insurance Companies
While Medigap plans are standardized by the government, the private insurance companies that sell them are all different. Choosing the right company is just as important as choosing the right plan, and it’s a decision that goes far beyond picking the lowest monthly premium.
You’ll want to look at a company’s long-term stability and customer service record. A low premium today isn’t a great deal if the company has a history of sharp rate increases down the road.
When comparing insurers, consider their financial strength ratings from agencies like A.M. Best, which show their ability to pay claims over the long haul. Also, look into customer satisfaction reviews to see how they treat their policyholders when help is needed. A company that is easy to work with and provides clear answers can save you a lot of stress.
The goal is to find a carrier that offers a fair price now and provides the peace of mind that they’ll be a reliable partner for your health care needs for years to come. Let’s walk through some of the major insurance companies you’ll likely see in your search.
The Big 65
As an independent insurance agency, we at The Big 65 don’t offer our own plans. Instead, we represent you, the Medicare beneficiary.
Our role is to help you compare plans and prices from the nation’s top insurance companies, including many of the names on this list. We provide unbiased, expert guidance to help you find the plan that truly fits your needs and budget, without being tied to a single carrier.
This approach ensures you see the full picture and can make a confident choice from a wide range of competitive options available in your area. Our loyalty is to you, not an insurance company, so you can trust our recommendations are always in your best interest.
Mutual of Omaha
A household name for decades, Mutual of Omaha has a strong reputation for financial stability and excellent customer service. This is a big deal because you want an insurer that can reliably pay your claims for years to come.
They offer a complete lineup of Medigap plans, with their Plan G being one of the most popular choices for new Medicare members. Policyholders often report positive experiences with their support team, which is a crucial factor when you need help with your coverage. Many people find peace of mind with a company that is known for being dependable and supportive, making them a consistently strong choice in the Medigap market.
Aetna
Aetna, a CVS Health company, is another major player in the Medigap market. They are known for having an extensive network and a wide variety of plan options to suit different needs.
One of the things that makes Aetna stand out is that their plans often include extra perks. These can include access to wellness programs, discounts on vision or dental services, and gym memberships, which can add significant value beyond standard Medigap coverage. If you’re looking for a plan that offers more than just the basics and helps you maintain a healthy lifestyle, Aetna’s offerings are definitely worth a look.
Cigna
If you’re looking for affordable premiums without sacrificing quality, Cigna is a company that should be on your radar. They are often recognized for offering competitively priced Medigap plans that provide comprehensive coverage.
Cigna also earns high marks for its customer service and for making information easy for beneficiaries to access and understand. This can be a huge help when you’re trying to sort through your options and understand exactly what your plan covers. For many seniors on a fixed income, Cigna represents a great balance of cost-effectiveness and reliable support from a financially strong company.
Blue Cross Blue Shield
Blue Cross Blue Shield (BCBS) is one of the most recognized names in American health insurance. It’s actually a federation of 34 independent companies, so your experience can vary slightly depending on your state’s BCBS provider.
However, they are consistently known for their vast provider networks, meaning it’s very likely your preferred doctors and hospitals will accept their plans. This extensive access, combined with a long history of reliable customer support, makes BCBS a solid choice for millions. You can visit the main BCBS Association website to find the specific company that serves your area.
UnitedHealthcare
As one of the largest health insurance providers, UnitedHealthcare offers a very broad range of Medigap plans, often through an endorsement from AARP. This partnership adds a layer of trust for many seniors.
UnitedHealthcare is frequently praised for its comprehensive benefits, which can include access to fitness programs like Renew Active and other health management resources. These extras can help you stay active and engaged. For those who want a plan from a large, established company with lots of choices and valuable health and wellness benefits, UnitedHealthcare is a top contender.
Humana
Humana is another leading company known for offering a diverse portfolio of Medigap plans at competitive prices. They focus on providing options that cater to a wide range of needs and financial situations, making them a popular choice for many seniors.
Humana has built a strong reputation for being customer-focused, with helpful support services available to guide policyholders through their coverage. They also place an emphasis on wellness and preventative care for their members. If you value having a variety of plan choices, affordable premiums, and a company that prioritizes customer care, Humana is an excellent option to explore.
Ready to Choose Your Medigap Plan?
Making the final call on your Medigap plan can feel like a big commitment, but you’ve already done the hard work of learning the basics. Now, it’s all about putting that knowledge into action.
Think of this as the final walkthrough before you get the keys to your new coverage. By focusing on a few key steps, you can move forward with confidence, knowing you’ve made a well-informed decision that truly fits your life and health needs. Let’s get you across the finish line.
Your final checklist for choosing a plan
Before you sign up, run through this quick checklist to make sure you haven’t missed anything. One of the most common Medicare plan errors is failing to explore all the available options. To avoid this, ask yourself:
- Have I compared all the Medigap plans available in my state?
- Have I looked beyond the monthly premium to understand the full picture of deductibles, copayments, and coinsurance?
- Does this plan align with my current health, budget, and potential future needs?
- Are my trusted doctors and specialists in the network, and will I be covered if I travel?
Taking a moment to confirm these points helps ensure you won’t face unexpected costs or coverage gaps down the road.
The next steps to get covered
Once you’ve picked a plan, the next step is to apply.
The best time to do this is during your Medigap Open Enrollment Period, which starts the month you’re 65 and enrolled in Part B. During this window, you have a guaranteed right to buy any Medigap plan sold in your state, regardless of your health.
You’ll apply directly with the private insurance company offering the plan. Remember that Medigap doesn’t include prescription drug coverage, so you’ll need to enroll in a separate Medicare Part D plan. It’s a good idea to evaluate all your options to ensure your doctors and medications are covered.
Why you should review your plan each year
Choosing a plan isn’t a one-time task. It’s wise to review your Medicare plan annually, especially during the Fall Open Enrollment Period. Life changes, and so can your healthcare needs. A plan that’s perfect for you today might not be the best fit in a few years.
Insurance companies can also change things on their end. For instance, your Part D drug plan may no longer cover a medication you take, or a hospital you like might leave your plan’s network. An annual review is your opportunity to make sure your coverage is still working for you and to switch plans if a better option has become available.
Related Articles
- Medicare Supplements (MediGap Plans) – The Big 65 – Medicare Insurance Services
- Medicare Supplement Insurance: Your Complete Guide – The Big 65 – Medicare Insurance Services
- What is a Medicare Supplement? – The Big 65 – Medicare Insurance Services
Frequently Asked Questions
If all Plan Gs are the same, why do the prices vary so much? This is the single most important thing to understand about Medigap. While the federal government standardizes the benefits of each plan letter, it doesn’t regulate the price. Insurance companies are free to set their own monthly premiums based on their business costs and how they assess risk. This is great news for you, because it means you can shop around for the best price on the exact same coverage and compare options among the best medicare supplement plans.
Do I need to find new doctors if I buy a Medigap plan? No, and that’s one of the best features of Medigap. Your plan goes wherever Original Medicare is accepted, which is nearly every doctor and hospital in the country. You don’t have to worry about restrictive provider networks. As long as your doctor accepts Medicare patients, they will accept your Medigap plan, regardless of which insurance company you chose.
Why would I choose a plan like Plan N over Plan G if it means I have to pay copays? It really comes down to how you prefer to pay for your healthcare. With Plan G, you pay a higher monthly premium for the peace of mind that comes with very predictable costs. With Plan N, you pay a lower monthly premium in exchange for sharing some of the costs when you visit a doctor or the ER. If you’re in good health and don’t expect to need frequent medical care, Plan N can be a smart way to save on your fixed monthly expenses.
I missed my initial six-month enrollment window. Is it too late to get a Medigap plan? It’s not necessarily too late, but it can be more difficult. That initial six-month window is your one-time “guaranteed issue” period, where companies must sell you a plan without asking about your health. If you apply outside of that window, an insurance company can generally require you to go through medical underwriting. This means they can review your health history and potentially charge you a higher premium or deny your application altogether.
Does my Medigap plan cover my prescription drugs? No, Medigap plans do not include coverage for prescription drugs you pick up at a pharmacy. These plans are designed to supplement Original Medicare Parts A and B, which cover hospital and medical services. To get coverage for your medications, you will need to enroll in a separate, standalone Medicare Part D Prescription Drug Plan.