Are you looking for the right medicare supplement plans to cover the gaps left by your Medicare Plan? Medicare supplement insurance or Medigap covers the remaining costs, including deductibles and copayments, after your Medicare Plan pays the initial part of the costs. However, with so many available options, finding the right one can be a daunting task. So, let us guide you to get a better understanding of the different types of medicare supplement plans to help you make informed decisions when purchasing an insurance policy.
What Are the Different Types of Medicare Supplement Plans?
There are several standardized Medicare Supplement Plans, which are identified by letters A through N. Each plan provides a different combination of basic benefits, but the coverage remains the same for all plans of the same letter, regardless of the insurance company offering them.
To help you choose one that suits your needs, here are the types of medicare supplement plans.
Medigap Plan A
Plan A helps pay for some of the expenses that Original Medicare does not cover, like deductibles, copayments, and coinsurance. Medigap Plan A does have certain restrictions, though. For example, it does not pay for emergency care when traveling outside of the United States, Part B excess charges, Part A deductibles, or coinsurance for skilled nursing facility care.
The insurance company, the policyholder’s age, and their location all affect the cost of Medigap Plan A. As of 2022, the typical monthly Medigap Plan A premium is approximately $152.
Here’s what Medigap Plan A covers according to Medicare.gov:
- Part A coinsurance and hospital costs are up to an additional 365 days after Medicare benefits are used up.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Blood transfusion (first three pi
Medigap Plan B
Plan B helps pay for some of the expenses that Original Medicare does not cover, like deductibles, copayments, and coinsurance. It also doesn’t cover long-term care, emergency care while traveling outside of the United States, or excess expenditures for Part B. Your monthly premiums increase after the coverage period expires, or your health state or medical history could prevent you from being covered.
Here are some of the benefits of Medigap Plan B, according to medicare.gov:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Blood transfusion (first three pints).
Medigap Plan C
One of the ten Medicare Supplement Plans, Medigap Plan C, helps with some out-of-pocket costs, such as coinsurance, copayments, and some deductibles, that Original Medicare does not cover. A Medicare Supplement plan is only available to those who are enrolled in Medicare Parts A and B. Also, Medicare Advantage policyholders are not eligible for this type of plan.
Medicare beneficiaries who became eligible on or after January 1, 2020, are no longer eligible for Plan C. You can keep your plan if you had Plan C before that date. If you were eligible for Medicare prior to January 1, 2020, but haven’t enrolled, you could still be able to purchase Plan C.
According to medicare.gov, Plan C covers the following:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Part B deductible. (Since 2020, new Medicare members can’t buy any plan that covers the Part B deductible. However, this coverage is available for Medicare beneficiaries currently enrolled in Medigap Plan C and Plan F.)
- Skilled nursing facility care coinsurance.
- Blood transfusion (first three pints).
- Emergency health care services for the first 60 days when traveling outside the U.S. Deductible and limitations apply.
Medigap Plan D
Though it’s not the most comprehensive choice, Medigap Plan D offers greater coverage than the majority of Medigap plans. For instance, Medicare Part B excess charges are not covered by Plan D. If you want additional coverage for excess charges beyond what is offered by Plan D, you may wish to look into Medigap Plan G.
Copayments, coinsurance, and some deductibles are among the out-of-pocket expenses that are partially covered by Plan D. The government oversees Medigap Plan D, but private health insurance providers sell it. Prices differ according to age, location, and tobacco use, among other criteria.
Here’s what Medigap Plan D covers, according to Medicare.gov:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Skilled nursing facility care coinsurance.
- Blood transfusion (first three pints).
- Emergency health care service for the first 60 days when traveling outside the U.S. Deductible and limitations apply.
Medigap Plan F
The most comprehensive Medigap plan available is Plan F, but you cannot acquire it unless you are eligible for Medicare by December 31, 2019. Even if you are, the cost of Plan F can be much higher than that of its comparable Medigap options, so you might end up spending more than the extra coverage you would receive.
In some areas, Plan F is also offered as a high-deductible plan. It fills in the “gaps” after the initial payment done by Original Medicare, including deductibles, copayments, and coinsurance.
Here’s what Medigap Plan F covers, according to Medicare.gov:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Part B deductible. (Since 2020, new Medicare members can’t buy any plan that covers the Part B deductible. However, this coverage is available for Medicare beneficiaries currently enrolled in Medigap Plan C and Plan F.)
- Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so).
- Skilled nursing facility care coinsurance.
- Blood transfusion (first three pints).
- Emergency health care services for the first 60 days when traveling outside the U.S.
Medigap Plan G
The most widely used Medicare Supplement Plan that is accessible to all Medicare enrollees is Medigap Plan G. Plan G pays for certain costs that are not covered by Medicare Parts A and B, including coinsurance, copayments, and deductibles.
Although Medicare supplement Plan G is one of the more expensive alternatives, it provides a lot of coverage. For newly eligible Medicare recipients, Plan G basically takes the place of Plan F.
Medicare.gov lists the following as the coverage provided by Medigap Plan G:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so).
- Blood transfusion (first three pints).
- Skilled nursing facility care coinsurance.
- Emergency health care service for the first 60 days when traveling outside the U.S. Deductible and limitations apply.
Medigap Plan K
Plan K is not like most other Medigap plans because it only pays a portion of the services it covers. But this lower coverage also contributes to lower premium expenses. For the majority of its covered services, it pays for 50% of the total cost; the remaining 50% must be paid for out of pocket.
Medigap Plan K covers the following, according to Medicare.gov:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible (50%).
- Part A hospice care coinsurance or copayment (50%).
- Part B coinsurance or copayment (50%).
- Skilled nursing facility care coinsurance (50%).
- Blood transfusion (first three pints) (50%).
- The annual out-of-pocket limit is $7,060 in 2024.
Medigap Plan L
Plan L is one of the ten Medigap policies that can be used in addition to traditional Medicare in the United States. While Medigap Plan L pays for 75% of many out-of-pocket expenses, it excludes some fees that are covered by some other Medicare Supplement plans.
The cost of a Medigap Plan L is determined by a number of variables, such as the policyholder’s purchase plan, place of residence, and insurance provider. Medigap policies are governed by law, but the cost of the plan is determined by the private health insurance provider you purchase it from.
Medicare.gov states that the following are covered by Medigap Plan L:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible (75%).
- Part A hospice care coinsurance or copayment (75%).
- Part B coinsurance or copayment (75%).
- Skilled nursing facility care coinsurance (75%).
- Blood transfusion, first three pints (75%).
- The annual out-of-pocket limit is $3,530 in 2024.
Medigap Plan M
Many out-of-pocket expenses are covered by Medigap Plan M. Like Medigap Plan D, which is one of the more extensive plans, Plan M is almost the same. The distinction is that Plan M only pays 50% of the Medicare Part A deductible, whereas Plan D covers 100% of it. However, Plan M may have cheaper premiums.
The majority of the services covered by Medigap Plan M are fully paid for. As of 2024, the current deductible is $1,632, so you would pay $800 if you were enrolled in Plan M.
Medicare.gov lists the following as the coverage provided by Medigap Plan M:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
- Part A deductible (50%).
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Skilled nursing facility care coinsurance.
- Blood transfusion (first three pints).
- Emergency health care services for the first 60 days when traveling outside the U.S. Deductible and limitations apply.
Medigap Plan N
When compared to other Medigap plans, Medigap Plan N can be a more affordable choice if you anticipate having few medical appointments. This is a result of its reduced monthly rates and higher copays. Medigap Plan N will fill in any “gaps” in your coverage after Medicare pays the allowable amount for medical expenses and services.
For instance, Plan N can pay your entire Part B coinsurance or your Medicare Part A deductible, with the exception of a copayment for some ER and/or doctor visits. Because Medigap Plan N offers limited coverage for some benefits, its premiums are low.
Medicare.gov states that the following are covered by Medigap Plan N.
- Part A coinsurance and hospital stays up to an additional 365 days after Medicare benefits are used up.
- Part A deductible.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance (copayments are up to $20 per office visit and up to $50 per emergency room visit; waived if admitted).
- Skilled nursing facility care coinsurance.
- Blood transfusion (first three pints).
- Emergency health care service for the first 60 days when traveling outside the U.S. Deductible and limitations apply.
Types of Medicare Supplement Plans FAQs
Which Medigap plan is the best for me?
The best Medigap plan depends on your individual healthcare needs, budget, and preferences. Consider factors such as the level of coverage, premium costs, and any specific benefits that are important to you.
Are all Medigap plans the same?
No, Medigap plans are standardized, but the coverage varies among the different lettered plans (A, B, C, etc.). Each plan provides a unique combination of benefits, so it’s essential to compare them to find the one that suits your requirements.
Can I change my Medigap plan?
In most cases, you can change your Medigap plan, but the ease of doing so depends on factors like your health and the timing of your request. During certain enrollment periods or with specific qualifying events, you may have guaranteed issue rights, making it easier to switch plans.
Do Medigap plans cover prescription drugs?
No, Medigap plans do not cover prescription drugs. If you need prescription drug coverage, you must enroll in a standalone Medicare Part D plan. Alternatively, some Medicare Advantage plans (Part C) include prescription drug coverage.
Conclusion
Finding the best Medicare supplement plan doesn’t have to be difficult. It all comes down to planning ahead and covering your needs. In order to make the best decision, we recommend speaking with our expert insurance broker to educate and help you determine what’s best for your situation, including benefits, networks, coverage, and other factors. Contact us today.