What Is the Best Medicare Supplement Plan?

Medicare Supplement Plans, often referred to as Medigap policies, offer a way to manage healthcare costs not fully covered by Original Medicare. These private insurance plans work in conjunction with Medicare Parts A and B, addressing out-of-pocket expenses such as deductibles, copayments, and coinsurance. This article explores the various Medigap options and provides guidance for selecting a plan that aligns with individual financial and health needs.

Understanding Medicare Supplement Plans

Medicare Supplement Plans are private insurance policies designed to complement Original Medicare, which consists of Part A (hospital insurance) and Part B (medical insurance). These plans are standardized by the federal government, ensuring that each plan type, identified by a letter, offers the same basic benefits regardless of the private insurance company selling it.

A distinction exists between Medigap policies and Medicare Advantage Plans (Medicare Part C). Medigap policies work with Original Medicare, helping to cover costs that Original Medicare does not. Conversely, Medicare Advantage Plans are an alternative to Original Medicare, combining Part A, Part B, and often Part D (prescription drug coverage) into a single plan offered by private companies. It is not possible to have both a Medicare Advantage Plan and a Medigap policy simultaneously, as they serve different functions within the Medicare framework. Individuals with a Medigap policy must also continue to pay their Medicare Part B premium.

Exploring Medigap Plan Options

Medigap policies are identified by letters A through N, each offering a distinct set of benefits designed to cover various out-of-pocket costs from Original Medicare. Premiums can vary between insurers for the same plan type.

Medigap Plan A provides foundational coverage, including Part A coinsurance and hospital costs for an additional 365 days after Medicare benefits are exhausted, and Part B coinsurance or copayment. It also covers the first three pints of blood and Part A hospice care coinsurance or copayment. Plan B offers all the benefits of Plan A, plus coverage for the Medicare Part A deductible.

Plan C is a comprehensive option that covers all benefits included in Plan B, along with the Medicare Part B deductible and skilled nursing facility care coinsurance. It also includes coverage for 80% of foreign travel emergency medical care (up to plan limits). However, Plans C and F are generally unavailable for purchase by individuals newly eligible for Medicare on or after January 1, 2020. Those eligible before this date can still enroll in or keep these plans.

Medigap Plan D covers Part A coinsurance and hospital costs for an additional 365 days, Part A deductible, skilled nursing facility care coinsurance, and Part A hospice care coinsurance. It also includes Part B coinsurance or copayment and 80% of foreign travel emergency care. Plan F offers the most comprehensive coverage, encompassing all benefits of Plan C, and additionally covers Medicare Part B excess charges. Similar to Plan C, Plan F is not available to individuals newly eligible for Medicare on or after January 1, 2020.

Plans K and L are cost-sharing options with annual out-of-pocket limits. Plan K covers 100% of Part A hospital coinsurance and costs for an additional 365 days, 50% of the Part B coinsurance, blood (first three pints), Part A hospice care coinsurance, skilled nursing facility care coinsurance, and the Part A deductible. Plan L offers similar benefits to Plan K but covers 75% of the Part B coinsurance, blood (first three pints), Part A hospice care coinsurance, skilled nursing facility care coinsurance, and the Part A deductible. For 2025, Plan L has an out-of-pocket limit of $3,610.

Medigap Plan M covers 100% of Part A coinsurance and hospital costs for an additional 365 days, Part B coinsurance, skilled nursing facility care coinsurance, and Part A hospice care coinsurance. It covers 50% of the Part A deductible and 80% of foreign travel emergency care. Plan N covers Part A coinsurance and hospital costs for an additional 365 days, Part B coinsurance (with copayments for some office and emergency room visits), blood (first three pints), skilled nursing facility care coinsurance, and Part A hospice care coinsurance. It also covers 80% of foreign travel emergency care.

Key Considerations for Choosing a Plan

Selecting a Medigap plan involves evaluating personal circumstances to find the most suitable coverage. An individual’s current health status and anticipated future medical needs play a significant role. People with chronic conditions or those who anticipate frequent doctor visits might benefit from more comprehensive plans that cover a larger portion of out-of-pocket costs, even if premiums are higher.

Budget and premium costs are important factors. More comprehensive Medigap plans typically have higher monthly premiums but result in fewer out-of-pocket expenses when medical services are utilized. Conversely, plans with lower premiums may require the policyholder to pay more through deductibles, copayments, or coinsurance. For example, the Medicare Part B deductible is $257 in 2025, and some plans do not cover this.

An individual’s financial situation helps determine their ability to absorb potential out-of-pocket costs versus preferring predictable monthly premiums. Those with substantial savings might be comfortable with plans that have lower premiums but higher cost-sharing, while others may prioritize the predictability of higher-premium plans. Medigap plans allow policyholders to see any doctor or hospital that accepts Medicare, providing broad access to healthcare providers. While Medigap plans are federally standardized, some states, such as Massachusetts, Minnesota, and Wisconsin, have different standardization rules.

Enrollment and Application Process

The process of enrolling in a Medicare Supplement Plan involves specific timeframes that can impact coverage and cost. The Medigap Open Enrollment Period is generally the best time to purchase a policy. This six-month period begins the month an individual is 65 or older and enrolled in Medicare Part B. During this window, insurance companies cannot deny coverage or charge higher premiums based on health conditions, ensuring guaranteed issue rights.

Other situations also grant guaranteed issue rights, allowing individuals to buy a Medigap policy outside their initial open enrollment period without medical underwriting. These can occur if an individual loses certain types of health coverage, such as employer coverage or if a Medicare Advantage plan leaves their service area. When guaranteed issue rights apply, insurers must sell a Medigap policy at the best available rate, regardless of health status.

To apply for a Medigap policy, individuals typically contact private insurance companies that offer these plans. It is advisable to compare quotes for the chosen plan type from several insurers, as premiums for the same standardized plan can vary. The application generally requires personal identifying information, including the Medicare number and the effective dates for Medicare Parts A and B. Coverage typically begins on the first day of the month after the application is approved, assuming all requirements are met.