See Medicare Supplement Insurance Plans Comparison

Medicare Supplement Insurance, sometimes known as Medigap, is a type of insurance that covers for expenses not covered by Original Medicare. Copayments, coinsurance, and deductibles owed under Original Medicare may be covered by a Medicare Supplement Plan.

Medicare Supplement Plans are secondary insurance coverage, not main coverage. To purchase a Medigap coverage, you must have both Medicare Parts A and B.

Because these plans are standardized and provided by private organizations, Medicare Supplement Plan G in New York will provide the same coverage as Medicare Supplement Plan G in Ohio.

What you should know about Medicare Supplement Plans

It can take some time to figure out how Medicare Supplement Plans function. Here are the fundamentals:

• One person is covered by a Medigap plan. If your spouse or partner wants a Medicare Supplement Plan as well, they must purchase their own policy.
• You cannot be dropped from a Medigap plan due to health difficulties. All standardized Medigap policies are guaranteed renewable, which means that if you have health concerns, they can’t terminate your coverage as long as you pay the payments.
• Prescription medicines are not covered by Medigap. Prescription drug coverage is no longer allowed in Medigap insurance. You’ll need a Medicare Part D Prescription Drug Plan for that.
• If you have Medicare Advantage, you won’t be able to purchase Medigap. If you have Medicare Advantage, it is actually prohibited for someone to sell you a Medigap coverage. You can acquire a Medigap plan if you return to Original Medicare.
• They aren’t comprehensive. Dental treatment, vision care, hearing aids, long-term care, eyeglasses, and private-duty nursing are often not covered by Medicare Supplement Insurance.
• Some proposals have been discontinued. Plans E, H, I, and J are no longer available for purchase, but if you bought one before June 1, 2010, you can keep it. Plan C and Plan F, which cover the Medicare Part B deductible, are likewise unavailable to anybody who become eligible for Medicare after January 1, 2020. (However, if you turned 65 before that date and haven’t enrolled in Medicare Part B because you have employer-sponsored coverage, you may be able to purchase Plans C and F if you do enroll in Part B.)

Compare Medicare Supplement Plans

If you’re thinking about purchasing a Medigap policy, it’s important to know what each plan covers. Here’s a comparison table of Medicare Supplement Plans to help you understand the differences between them.

* In some states, Plans F and G have a high-deductible plan option. That means you must pay for Medicare-covered costs (coinsurance, copayments, deductibles) up to the deductible of $2,370 in 2021, at which point your coverage will kick in. ** Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and a copayment of up to $50 for emergency room visits that don’t lead to inpatient admission. *** For Plans K and L, once you meet your out-of-pocket yearly limit and your yearly Part B deductible, the plan pays 100% of covered services for the remainder of the year.

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How much does Medicare Supplement Insurance cost?

There are a number different approaches to price Medicare Supplement Plans:

• Premiums are not based on age; instead, everyone pays the same monthly premium. This is also known as “no age-rated.”
• Premiums are issue-age-rated, which means they are calculated based on your age at the time of purchase. Younger people, on average, pay lesser rates than older persons. This is also known as “entrance age-rated.”
• Attained-age-rated: Premiums are calculated depending on your present age, so as you get older, your costs will rise.

Insurance tip: Because costs can vary significantly between plans that provide the same coverage, it’s a good idea to shop around before committing to one.

The premium ranges for individual Medicare Supplement Insurance plans in California in 2021 are shown below as an example.

*The cost will vary depending on where you live and your health situation. The figures above are based on plans offered to a 65-year-old nonsmoking guy in the 92589 ZIP code of California.

Find Medicare Supplement Insurance near you

On Medicare.gov, you can look for Medicare Supplement Plans in your location. Simply input your ZIP code, then on the next page, provide your age, sex, and cigarette use for more precise pricing.

Following your selection of a Medigap plan, the finder will provide companies in your area that offer it, as well as the plan’s pricing approach (community, attained-age, or issue-age pricing).

When to enroll in Medicare Supplement Insurance

During your Medigap Open Enrollment Period, you should purchase Medicare Supplement Insurance. This lasts six months and begins the month you turn 65 and enroll in Medicare Part B. It also doesn’t happen again, so don’t miss out.

Companies selling Medicare Supplement plans must sell you a policy during this open enrollment period and cannot charge you a higher price, even if you have health problems.

Companies can refuse to sell you a policy outside of your open enrollment window, and they can charge you a higher price based on any health issues you may have.

SOURCES

1. Medicare.gov, “Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare,” accessed June 3, 2021.
2. Medicare.gov, “What’s Medicare Supplement Insurance (Medigap)?” accessed June 3, 2021.
3. Medicare.gov, “How to compare Medigap policies,” accessed June 3, 2021.
4. Medicare.gov, “Costs of Medigap policies,” accessed June 3, 2021.
5. Medicare.gov, “Find a Medigap policy that works for you,” accessed June 3, 2021.
6. Medicare.gov, “When can I buy Medigap?” accessed June 4, 2021.