Which Medicare Supplement Plan Is Best?

Medicare Supplement, or Medigap, consists of health insurance policies offered by private companies. These plans work with Original Medicare (Part A Hospital Insurance and Part B Medical Insurance). While Original Medicare provides substantial coverage, it doesn’t cover all medical expenses, leaving beneficiaries responsible for out-of-pocket costs. Medigap plans cover these “gaps” in Original Medicare, such as copayments, coinsurance, and deductibles. They help manage and reduce unexpected out-of-pocket expenses.

What Medicare Supplement Plans Cover

Medicare Supplement plans are standardized across most states; a Plan G from one insurer offers the same core benefits as a Plan G from another. There are 10 standardized Medigap plans identified by letters A through N.

Original Medicare has cost-sharing requirements that Medigap plans address. Medicare Part A covers hospital inpatient care, but beneficiaries pay a deductible per benefit period ($1,676 in 2025). After a certain number of hospital days, Part A also requires coinsurance. Medigap plans typically cover the Part A deductible and coinsurance for hospital stays, including an additional 365 days after Medicare benefits are exhausted.

Medicare Part B covers doctor services, outpatient care, and preventive services, paying 80% of the Medicare-approved amount. Beneficiaries are responsible for the remaining 20% coinsurance after meeting an annual deductible. Most Medigap plans cover this Part B coinsurance or copayment. Medigap plans also cover skilled nursing facility care coinsurance and the first three pints of blood.

Some Medigap plans cover Medicare Part A hospice care coinsurance or copayment. Certain Medigap plans also cover medically necessary emergency healthcare services when traveling outside the United States, typically covering 80% of approved costs up to a lifetime limit after a deductible.

Key Considerations for Choosing a Plan

Selecting a Medicare Supplement plan involves evaluating individual healthcare needs and financial circumstances. Consider your current health status and anticipated healthcare usage. Those with chronic conditions or expecting frequent medical appointments, hospitalizations, or specialized care may benefit from more comprehensive coverage. Conversely, healthy individuals with minimal expected healthcare needs might opt for plans with lower premiums and higher cost-sharing.

Budget and tolerance for out-of-pocket costs also play a role. Medigap plans require monthly premiums, which vary based on coverage. Assess how much you can afford in monthly premiums versus your willingness to pay deductibles, copayments, or coinsurance. A lower premium plan might mean higher out-of-pocket costs when services are used, while a higher premium plan could result in fewer unexpected expenses.

Lifestyle and travel habits are another consideration. For frequent travelers, especially internationally, a Medigap plan with foreign travel emergency coverage can be beneficial. This coverage provides financial protection for unexpected medical needs abroad, which Original Medicare generally does not cover.

Medigap plans do not cover prescription drugs. For prescription drug coverage, enroll in a separate Medicare Part D plan. Therefore, when choosing a Medigap plan, consider prescription drug needs and secure a Part D plan. This ensures comprehensive coverage for medical services and medications.

Plan availability varies by location and insurance provider. While standardized, not every insurer offers all 10 lettered plans in every area. Research plans offered by various insurers in your region and compare premiums for the same lettered plan, as benefits are identical regardless of the company.

Overview of Popular Medigap Plans

Popular options include Plan F, Plan G, and Plan N, each offering distinct coverage profiles.

Medigap Plan F offers comprehensive coverage, paying for nearly all out-of-pocket costs associated with Original Medicare. It covers Medicare Part A and Part B deductibles, coinsurance, Part A hospice care coinsurance, skilled nursing facility care coinsurance, and Part B excess charges. Plan F also includes foreign travel emergency coverage. However, Plan F is only available to those eligible for Medicare before January 1, 2020. Those eligible for Medicare on or after this date cannot purchase Plan F.

Medigap Plan G is the most comprehensive option for individuals new to Medicare on or after January 1, 2020. Plan G covers all Plan F benefits, except the Medicare Part B deductible. For 2025, the Part B deductible is $257. Plan G covers the Medicare Part A deductible, Part A and Part B coinsurance, Part A hospice care coinsurance, skilled nursing facility care coinsurance, and Part B excess charges. It also includes foreign travel emergency coverage, and many find Plan G an excellent value, as premium savings often outweigh the Part B deductible cost.

Medigap Plan N offers a lower monthly premium than Plan G, with some cost-sharing responsibilities. Plan N covers the Medicare Part A deductible, Part A and Part B coinsurance (with exceptions), Part A hospice care coinsurance, and skilled nursing facility care coinsurance. However, Plan N does not cover the Medicare Part B deductible or Part B excess charges. Plan N also requires copayments of up to $20 for some office visits and up to $50 for emergency room visits not resulting in inpatient admission. These copayments contribute to a lower premium, making Plan N attractive for those balancing premium cost and potential out-of-pocket expenses.

Understanding Medigap Enrollment and How to Apply

The most opportune time to purchase a Medigap policy is during your Medigap Open Enrollment Period. This six-month period begins the first month you are age 65 or older and enrolled in Medicare Part B. During this timeframe, insurers cannot deny coverage or charge higher premiums due to health conditions. This is known as a guaranteed issue right.

Missing the Medigap Open Enrollment Period can have financial implications. Outside this period, insurers can use medical underwriting to evaluate an applicant’s health status. This could lead to a denial of coverage or higher premiums based on health conditions. While you can apply for Medigap at any time, guaranteed issue rights during the initial enrollment period offer the most favorable terms.

Beyond the initial open enrollment period, specific situations trigger guaranteed issue rights, allowing you to purchase a Medigap policy without medical underwriting. These situations include losing employer-sponsored group health coverage, or losing coverage from a Medicare Advantage plan if it leaves or you move out of its service area. Other scenarios involve a Medigap insurer going bankrupt or switching from a Medicare Advantage plan within the first 12 months (trial right). In these instances, specific timeframes (generally around 63 days) apply to secure a new Medigap policy under guaranteed issue conditions.

To apply for a Medigap plan, first ensure you are enrolled in Original Medicare Parts A and B. Next, contact various insurance companies offering Medigap plans in your area. Compare premiums for the exact same lettered plan across different insurers, as benefits are standardized but prices vary. Once a plan and insurer are chosen, submit the application directly to the insurance company. The Medigap policy generally begins on the first day of the month after application, though you can sometimes request a start date aligned with your Medicare benefits.