Medicare Supplement plans can be a lifesaver for those with high medical bills, but they come with a price tag. The cost of a Medicare Supplement plan can vary depending on the provider, with some plans costing as little as $100 per month and others exceeding $300.
The cost of a Medicare Supplement plan is usually determined by the provider and can be influenced by factors such as your age, health, and location. In some cases, the cost can be higher for older individuals or those with pre-existing conditions.
To give you a better idea, let's take a look at some of the factors that can affect the cost of a Medicare Supplement plan. For example, Plan F is one of the most comprehensive plans available, but it also tends to be one of the most expensive, with some providers charging upwards of $300 per month.
Broaden your view: Which Statement Is True of Medicare Supplement Insurance Plans
What Medicare Supplement Covers
Medicare Supplement plans cover certain copays, coinsurance, and/or deductibles from Medicare Part A and/or Part B coverage.
Medigap Plan G, the most comprehensive Medicare Supplement Insurance plan available to new Medicare members, covers Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
Here are the specific benefits covered 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.
- Medically necessary emergency health care service for the first 60 days when traveling outside the U.S. Deductibles and limitations apply.
The government standardizes Medigap plans, so you get the same Medicare coverage regardless of the company that sells the plan.
Types of Medicare Supplement Plans
There are 10 standardized Medicare Supplement plan types available in most states. These plans vary in terms of what benefits they cover and how much they pay for medical care.
The most popular Medicare Supplement plan types are Plan G and Plan N. Plan G has the highest coverage, but Plan N has lower premiums and copays for certain medical visits.
The different plan types are categorized as follows: basic benefits (Medigap Plan A), basics plus some extras (Medigap Plan B and Medigap Plan M), highest coverage (Medigap Plan D and Medigap Plan G), lower premiums but higher copays (Medigap Plan N), lowest premiums with partial coverage (Medigap Plan K and Medigap Plan L), and no longer available to new Medicare members (Medigap Plan C and Medigap Plan F).
Take a look at this: Anthem Blue Cross Medicare Supplement Plan F California
Here's a breakdown of the plan types:
What Are the Types?
There are 10 standardized Medicare Supplement plan types in most states, but some states like Massachusetts, Minnesota, and Wisconsin have their own standards.
Most states have 10 standardized Medicare Supplement plan types, which vary in terms of what benefits they cover and how much they pay for medical care. High-coverage plan types generally have higher premiums, but they're also by far the most popular.
You can buy Medigap Plan G and Plan N, which are the most popular Medicare Supplement plan types available for any Medicare member. Plan G has the highest coverage of these options.
Medigap Plan N covers nearly as much as Plan G and has lower premiums, but it has copays for certain medical visits.
Here's a quick rundown of the different types of Medicare Supplement plans:
New Medicare enrollees are no longer allowed to buy plans that pay for the Medicare Part B deductible.
Comprehensive Plan
Medicare Supplement plans offer varying levels of coverage, but there isn't a plan that covers everything.
Plan F is the highest coverage Medicare Supplement plan, but it's not available to new Medicare members who became eligible after 2019. Plan G is the closest alternative for new Medicare members, offering almost as many benefits as Plan F.
Plan F is the most popular Medicare Supplement plan, covering about 39% of beneficiaries in 2022.
Plan G offers almost as many benefits as Plan F, making it a great alternative for those who can't get Plan F.
Recommended read: Medicare Supplement Plan F Rates
Compare Anthem Benefits
Anthem Medicare Supplement plans offer a range of benefits to help control costs.
The four plans offered by Anthem, including A, F, G, and N, each have unique benefits and premium costs. For example, Plan N pays 100% of Part B coinsurance, except for certain copayments.
To help you decide which plan is right for you, let's break down the benefits of each plan. Here's a comparison of Anthem's Medicare Supplement plans:
Keep in mind that these plans have varying premium costs, ranging from $102 to $226 per month.
Insurance Costs and Enrollment
Medicare Supplement Insurance costs can vary significantly depending on the plan type, company, and individual factors such as age, sex, location, and health. Monthly premiums can start as low as $30-$40, but can cost hundreds of dollars per month for older adults in higher cost areas.
High-deductible plans and plans with less coverage, like Plan K and Plan L, have lower premiums. A plan with more comprehensive coverage, such as Plan G, tends to have higher premiums. You might even find that a high-coverage plan like Plan G has lower premiums than an option with less coverage like Plan A.
Some Medicare Supplement plans have additional costs beyond monthly premiums, such as copays for office and emergency room visits, or requiring you to pay out of pocket for a percentage of covered services.
Here's a comparison of the average estimated premiums of different Medicare Supplement Insurance plans in 2023:
It's worth noting that Medigap premiums can increase over time due to inflation and other factors, regardless of the pricing model your insurance company uses.
Insurance Costs
Medicare Supplement Insurance costs can vary significantly depending on several factors, including your age, sex, location, tobacco use, and health.
Monthly premiums for Medigap plans start as low as $30-$40, but can cost hundreds of dollars per month for older adults in higher cost areas.
High-deductible plans and plans with less coverage, like Plan K and Plan L, tend to have lower premiums. A plan with more comprehensive coverage, such as Plan G, tends to have higher premiums.
You might even find that a high-coverage plan like Plan G has lower premiums than an option with less coverage like Plan A, so compare your quotes carefully.
Medigap prices can vary significantly across health insurers and plan types, sometimes in ways that aren't intuitive.
Some Medigap plans have other costs in addition to monthly premiums, such as copays for office and emergency room visits, or out-of-pocket costs for certain services.
Here are some examples of other costs you might pay with certain plans:
- Medigap Plan N has copays for some office and emergency room visits.
- Medigap Plan K and Plan L require you to pay out of pocket for 50% or 25% of most covered services, respectively.
- A high-deductible version of Medigap Plan G requires you to meet a deductible of $2,870 in 2025 before benefits kick in.
Medigap premiums can increase over time due to inflation and other factors, regardless of the pricing model your insurance company uses.
Medicare Supplement Insurance plan premiums could be more expensive for older beneficiaries for a few reasons, such as:
- Insurance companies can charge you a higher premium based on your health if you wait until after your Medigap Open Enrollment Period to sign up for a Medigap plan.
- There are three different age-related pricing models that Medicare Supplement Insurance companies use to determine their Medigap plan rates.
Here's a breakdown of the average cost of Medicare Supplement Insurance Plan F by age:
Note that each type of Medigap plan offers a different combination of standardized benefits, and plans with fewer benefits may offer lower premiums.
Enrollment Timing
The best time to sign up for Medicare Supplement Insurance is during your Medigap open enrollment period, which starts the first month you have Medicare Part B and are 65 years of age or older.
This six-month window is the easiest and least expensive time to enroll in a Medigap plan, and you'll receive the best possible rate regardless of your medical condition.
You can also enroll during your Initial Enrollment Period, starting three months before you turn 65, and ending three months after the month you turn 65.
If you enroll during this time, you'll have a six-month window to select a Medigap policy, and you'll receive the best possible rate.
After your Medigap open enrollment period ends, insurers can charge more or deny coverage for a new plan due to your health status or medical history.
It's essential to take advantage of this initial open enrollment period to avoid potential rate increases and delayed coverage for pre-existing conditions.
You'll have a six-month window to enroll in a Medigap plan, and during this time, you'll receive the best possible rate, regardless of your medical condition.
Medigap policies are guaranteed renewable, which means you can continue with your same policy unless you stop paying your premium or the insurance company becomes bankrupt or insolvent.
C Plus Disclaimer
You might be eligible for Plan F if you became eligible for Medicare prior to January 1, 2020.
Plan F is subject to federal guidelines, which means there are specific rules you need to follow to qualify.
As a representative of a health insurance company, I'm not allowed to collect payment information from you, such as your checking account or credit card details, for the purchase of health or dental insurance.
Add to Original
Medicare Supplement plans do not include prescription drug coverage, so you may need to add a separate plan for that.
You can add prescription drug coverage with an Anthem standalone plan, which costs an additional premium.
Medicare Supplement plans also don't typically include dental, vision, or hearing coverage, so you may need to consider adding those benefits separately.
Here are some examples of additional costs you might pay with certain Medicare Supplement plans:
- Medigap Plan N has copays for some office and emergency room visits.
- Medigap Plan K and Plan L require you to pay out of pocket for 50% or 25% of most covered services, respectively.
- A high-deductible version of Medigap Plan G requires you to meet a deductible of $2,870 in 2025 before benefits kick in.
Keep in mind that Medigap premiums can increase over time due to inflation and other factors, regardless of the pricing model your insurance company uses.
Here is a list of some common additional costs associated with Medicare Supplement plans:
- Medigap Plan N: copays for office and emergency room visits
- Medigap Plan K and Plan L: out-of-pocket costs for 50% or 25% of covered services
- High-deductible Medigap Plan G: $2,870 deductible in 2025
Add Health Insurance Coverage
Adding health insurance coverage can be a crucial step in protecting your finances and well-being. You can enroll in a Medicare Supplement plan anytime if you already have Original Medicare Part A and Part B.
The best time to enroll is during the Medigap Open Enrollment Period, starting the first month you have Medicare Part B and you’re 65 or older. This is the easiest and least expensive time to enroll in a Medigap plan.
Most people choose Plan F, G, or N, but the right plan for you may not be the most popular one. The right plan is the one that provides the benefits that meet your needs, with a monthly premium that works with your budget.
Medicare Supplement plans cover certain copays, coinsurance and/or deductibles from Medicare Part A and/or Part B coverage. For example, Medigap Plan G covers Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.
You can also add prescription drug coverage, dental, vision, or hearing coverage to your Medicare Supplement plan for an additional premium. Anthem standalone plans offer these benefits, including an Anthem Prescription Drug (Medicare Part D) plan.
Here are some benefits that Medicare Supplement plans can cover:
- 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.
- Medically necessary emergency health care service for the first 60 days when traveling outside the U.S. Deductibles and limitations apply.
Keep in mind that the plans with the most coverage will have higher premiums. You can save up to 25% by applying online, with 20% in premiums and 5% if you apply online.
Suggestion: Medicare Payments Online
Frequently Asked Questions
What is the best supplemental insurance for Medicare for seniors?
For seniors turning 65, Plan G is the most comprehensive and popular choice, while Plan N is a close second. Consider these options for the best supplemental insurance to complement your Medicare coverage.
What is the deductible for Medicare Supplement 2024?
For Medicare Supplement 2024, the deductible is $2,800, which you must pay before your policy covers costs, plus a separate $250 deductible for foreign travel emergency care.
Which is cheaper Medicare Advantage or Medicare Supplement?
Medicare Advantage is often cheaper than Medicare Supplement, and in some cases, it's even free. This is because Medicare Advantage plans are paid for by the government using your Part B premium.
What state has the lowest Medicare Supplement premiums?
Wisconsin, Hawaii, and Iowa have the lowest average monthly Medicare Supplement premiums, with costs around $102 per month. If you're looking for affordable coverage, consider exploring these states' options.
What is the least expensive supplemental insurance for Medicare?
The least expensive supplemental insurance for Medicare is a High-deductible Plan G, which can cost as low as $49 per month on average. This affordable option may be a good choice for those looking to save on their Medicare premiums.
Sources
- https://www.nerdwallet.com/article/insurance/medicare/medigap-what-to-know-about-medicare-supplement-insurance
- https://www.bcbsalmedicare.com/sales/web/medicare/learn/medigap.html
- https://www.anthem.com/medicare/medicare-supplement-plans-medigap
- https://www.cigna.com/medicare/shop-plans/supplemental/compare-plans
- https://www.medicaresupplement.com/articles/average-cost-of-medicare-supplement-plan-f/
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