Which Is the Best Medicare Supplement Plan?

Medicare Supplement plans, or Medigap policies, help manage healthcare costs not fully covered by Original Medicare (Parts A and B). Sold by private insurers, they cover out-of-pocket expenses like deductibles, copayments, and coinsurance, providing a more predictable healthcare budget.

Standardized Medicare Supplement Plans

Medigap plans are standardized across the U.S.; a plan of the same letter, like Plan G, offers identical basic benefits regardless of the private insurer. While benefits are consistent, premiums vary significantly, simplifying coverage comparison and allowing focus on cost and company reputation.

Ten standardized Medigap plans are available: A, B, D, G, K, L, M, and N. Plan A provides basic coverage, including Medicare Part A coinsurance and hospital costs for an additional 365 days after Medicare benefits are exhausted, Part B coinsurance or copayment, and the first three pints of blood. Plan B adds the Medicare Part A deductible.

Plans K and L use a cost-sharing model, covering a percentage of benefits until an annual out-of-pocket limit is reached. Plan K covers 50% of the Part A deductible, Part B coinsurance, and skilled nursing facility coinsurance, while Plan L covers 75% of these costs.

Plan M covers 50% of the Part A deductible, along with full coverage for Part A coinsurance, Part B coinsurance, blood, hospice care, and skilled nursing facility coinsurance. Plan N covers all Part A coinsurance and hospital costs, the Part A deductible, skilled nursing facility coinsurance, and 100% of Part B coinsurance, with the exception of copayments for some doctor visits and emergency room visits.

Medigap Plans C and F are no longer available for individuals eligible for Medicare on or after January 1, 2020. This change, from the Medicare Access and CHIP Reauthorization Act of 2015, prohibits new Medigap policies from covering the Medicare Part B deductible. Those eligible before this date may still purchase or keep Plans C and F if available.

Comparing Plan Coverage Details

Understanding each Medigap plan’s components is important for selecting a suitable policy. All standardized Medigap plans (A, B, D, G, K, L, M, N) cover Medicare Part A coinsurance and hospital costs for an additional 365 days after Medicare benefits are exhausted. They also cover Medicare Part B coinsurance or copayment, though the percentage varies for Plans K and L, and Plan N has specific copayments.

All Medigap plans cover the first three pints of blood and Part A hospice care coinsurance or copayment, with Plans K and L covering 50% and 75% respectively. Skilled nursing facility care coinsurance is covered by Plans C, D, F, G, M, and N. Plans A and B do not, while Plans K and L cover 50% and 75% respectively.

Medicare Part A deductible coverage varies: Plans B, C, D, F, G, and N cover it fully; Plans K, L, and M cover a percentage (50% for K and M, 75% for L). Plan A does not. The Medicare Part B deductible ($257 in 2025) is covered only by Medigap Plans C and F.

Medicare Part B excess charges (when a provider charges more than the Medicare-approved amount) are covered only by Plans F and G; Plans N, K, L, and M do not. Foreign travel emergency care is covered by Plans C, D, F, G, M, and N at 80% of costs, up to specified limits (typically a $50,000 lifetime maximum after a $250 deductible).

Medigap Plans F and G are similar; Plan F covers the Medicare Part B deductible, while Plan G does not. For those eligible for Medicare on or after January 1, 2020, Plan G is the most comprehensive option.

Plan G and Plan N are often compared. Plan G covers Part B excess charges and has no copayments for doctor or emergency room visits after the Part B deductible. Plan N does not cover Part B excess charges and requires copayments of up to $20 for some doctor visits and up to $50 for emergency room visits not resulting in inpatient admission. Plan G provides more complete coverage, but Plan N generally has lower monthly premiums due to cost-sharing.

Considerations for Your Choice

Selecting a Medigap plan requires evaluating individual circumstances, as no single plan suits everyone. Personal health status and anticipated medical needs are primary considerations. Someone with chronic conditions might prioritize comprehensive coverage with minimal out-of-pocket costs, like Plan G, for predictable expenses. A healthy individual anticipating fewer medical needs might prefer a plan with lower premiums and some cost-sharing, like Plan N.

Budget and premium costs play a role. While plan benefits are standardized, monthly premiums vary between insurers. Understanding how premiums are determined is important. Insurers typically use one of three rating methods: community-rated, issue-age-rated, or attained-age-rated.

With a community-rated policy, everyone in a specific geographic area pays the same premium regardless of age. Premiums may increase due to inflation, but not the policyholder’s increasing age.

Issue-age-rated policies base the premium on the individual’s age at purchase. Premiums may increase due to inflation or healthcare costs, but not simply because the policyholder ages.

Attained-age-rated policies, common, set premiums based on the policyholder’s current age. Premiums typically start lower for younger enrollees but increase as the individual ages. When comparing plans, consider initial premium and potential future rate increases based on the rating method. While rating methods vary by state, understanding them helps assess long-term financial commitment.

Predictable out-of-pocket expenses often guide plan selection. Plans like Plan G offer high predictability, covering almost all Medicare-approved costs after the Part B deductible, leaving few unexpected bills. This benefits those preferring a clear understanding of their maximum annual healthcare expenditures. Conversely, plans with copayments or higher deductibles may offer lower premiums but introduce more variability in out-of-pocket costs.

Specific Medigap plan availability varies by state. While core benefits are standardized nationally, not all plans are offered everywhere. Individuals should confirm available plans in their area when researching options.

Enrollment and Eligibility

Enrolling in a Medigap plan involves specific periods and conditions impacting eligibility and cost. The most important time to purchase a Medigap policy is during the Medigap Open Enrollment Period, a six-month period beginning in the first month an individual is both 65 or older and enrolled in Medicare Part B.

During this six-month window, federal law requires insurers to sell any Medigap policy to an eligible individual, regardless of health status. They cannot deny coverage or charge higher premiums based on pre-existing conditions. This guaranteed issue right ensures access to supplemental coverage during initial enrollment.

Outside the Medigap Open Enrollment Period, individuals may still have guaranteed issue rights under specific circumstances. These rights compel insurers to sell a Medigap policy without medical underwriting, meaning an applicant cannot be denied coverage or charged more due to health issues. Situations include loss of employer-sponsored group health coverage (including COBRA) or moving out of a Medicare Advantage plan’s service area.

These guaranteed issue periods typically have a limited timeframe, often requiring application within 63 days of the qualifying event. For instance, if employer coverage ends, an individual generally has 63 days to apply. Specific plans available under guaranteed issue rights may vary, but ensure continued access to supplemental coverage.

Applying for a Medigap plan involves contacting insurers offering these policies in your area and completing an application. Compare options from various insurers, even for standardized plans, as premiums can differ.