Is Medigap Worth the Investment for Your Healthcare

Medigap plans can help cover out-of-pocket costs for Medicare beneficiaries, but is it worth the investment? In the US, over 10 million people have a Medigap plan, which suggests that many people believe it's a good idea.

The cost of Medigap plans varies by state, with some plans costing as much as $400 per month. This is a significant expense, but for some people, it may be worth it to avoid financial ruin.

Medigap plans can help cover unexpected medical expenses, such as hospital stays or surgeries, which can be a huge financial burden. This is especially true for people with chronic conditions who may need ongoing medical care.

Medigap Plan G is often more expensive than other plan types. This is because it covers a wide range of benefits.

The value of Plan G's added coverage depends on the specifics of prices available to you. It's worth considering your individual circumstances and priorities.

Whether Medigap is worth it to you depends on the price you pay and the value you place on its added coverage.

Medigap plans come in different types, each offering varying levels of coverage. There are 10 standardized Medigap plans available, labeled A through L.

Plan A provides basic benefits, while plans like B, M, and F offer additional coverage. These plans can be a good option for those who want some extra protection beyond what Medicare covers. However, plan F is no longer available for sale to new Medicare members.

Here's a breakdown of the different Medigap plan types:

Medigap is a type of insurance that helps fill the gaps in Original Medicare coverage. It's designed to supplement your Medicare benefits, not replace them.

There are several types of Medigap plans, each with its own level of coverage. For example, Medigap Plan A provides basic benefits, while Medigap Plan D and Medigap Plan G offer the highest coverage.

Medigap Plan N has lower premiums but higher copays. On the other hand, Medigap Plan K and Medigap Plan L have the lowest premiums but offer partial coverage.

Medigap Plan C and Medigap Plan F are no longer available for sale to new Medicare members.

Medigap plans can be confusing, but let's break it down. Medigap Plan G covers the most benefits out of the Medigap plans available to new Medicare beneficiaries.

Plan G is widely available, but it comes with a higher price tag. Plan G tends to have higher premiums because of its high coverage.

Excess charges are rare, but Plan G covers them if a provider is permitted to charge more. 98% of providers who accept Medicare can't impose excess charges.

Medigap Plan D and Plan N can cost less than Plan G for nearly the same benefits. Plan D or Plan N might be a better fit for those looking to save money.

Plan F is still available for those born before 1955, but it's not the best option. Two important reasons make Plan F less desirable.

Medigap plans cover some of the out-of-pocket costs that Original Medicare doesn't pay for, such as copays and deductibles.

Medigap plans are standardized, meaning they offer the same benefits across different insurance companies, but with different premiums.

There are 10 standardized Medigap plans, labeled A through N, each offering different levels of coverage.

Medigap plans, including Plan G, have some limitations to their coverage.

Medicare Supplement Plan G doesn't cover the Part B deductible, which is a significant out-of-pocket expense for many Medicare members.

New Medicare members can't buy any Medigap plan that covers the Part B deductible, a policy change that took effect in 2020.

Some expenses are simply not covered by any Medigap plan. These include prescription drugs, which are covered by Medicare Part D.

Medigap plans also don't cover long-term care, such as non-skilled care in a nursing home.

Dental care and vision care are also not covered by Medigap plans.

Private-duty nursing is another expense that's not covered by Medigap plans.

Here are some examples of expenses that aren't covered by Medigap plans:

Having your own doctor can be a big deal, especially as you age. Medicare supplemental insurance can be a good idea if you value doctor choice.

You may want to consider a supplement to ensure your doctor is in charge of your care, not the insurance company. A supplement doesn't require a referral to see any doctor.

Choosing a supplement can give you peace of mind, knowing you can see the doctor you trust without needing permission from your insurance company.

Choosing Medigap can be a daunting task, but don't worry, I'm here to help. You can start by using Medicare's chart to see what each plan covers. This will give you a clear idea of what's included and what's not.

Medicare also provides a tool that allows you to compare different Medigap plans available in your area. Simply enter your zip code, age, gender, and whether you smoke, and Medicare will provide a price range for each available plan and a list of insurers who offer the coverage.

If you're looking for the best Medigap plan options, you can check out Medicare's Medigap roundup. They've compiled a list of the best plans in various categories, including best for member satisfaction and best for extra benefits.

Here's a quick rundown of the different categories:

In some states, you may also be able to purchase Medigap plans if you're under 65 and living with a disability. You can find more information through your State Health Insurance Assistance Program, or SHIP.

Medigap policies can be pricey, but the costs vary depending on your age, location, and other factors. The annual deductible for Medigap Plan J is $2,800 in 2024, and some plans may have a separate prescription drug deductible of $250.

Monthly premiums for Medigap policies can be set in different ways by insurance companies, including community rated, issue-age rated, and attained-age rated. This means that premiums can be the same for everyone who buys the policy, or they can be tied to your age when you first purchased the policy.

The cost of Medigap Plan G varies by age, location, and other factors, with premiums ranging from $119 to $321 per month for a 65-year-old female nonsmoker in Atlanta. Some states also offer a high-deductible Plan G, which has lower monthly premiums but requires a deductible of $2,870 in 2025.

The best time to buy a Medigap policy is during the six-month open enrollment period, which starts when you're 65 and enrolled in Medicare Part B. This is the cheapest and easiest time to get a policy, as insurance companies can't factor your health or medical history into your price.

Enrolling in Medicare supplemental insurance when you first get Medicare A & B is a good idea, as it allows you to get into any plan that's available to you without any underwriting or preexisting conditions. If you have the opportunity, consider getting Medigap before age 65, as this may be your only chance to get a supplemental plan before you turn 65.

Here are the different ways that insurance companies can set monthly premiums for Medigap policies:

Medigap Plan G is often more expensive than other plan types because it covers such a wide range of benefits.

The value of Plan G's added coverage depends on the specifics of prices available to you.

Whether it's worth it to you depends on your individual circumstances, but it's worth considering the extra costs.

Medicare Supplement Plan G and Plan N are two popular options for new Medicare members. Plan G covers a wider range of benefits than Plan N.

Plan N generally has lower premiums than Plan G, but it also has copays for certain medical office and emergency department visits. If you don't have a lot of those visits, Plan N might be the better deal for you.

Plan G might end up less expensive if you would have to pay those copays often.

Plan F and Plan G are two popular Medicare Supplement plans, but which one is right for you?

Plan F covers everything that Plan G does, plus the Part B deductible, which is $257 in 2025. However, you can't buy new plans that cover the Part B deductible anymore, so it's not an option for most new Medicare members.

Paying extra for Plan F might not be worth it, especially if the additional cost is more than the Part B deductible. For example, in Los Angeles, the annual premium for Plan F starts around $2,580, compared to $1,840 for Plan G, a difference of $740.

In some cases, paying for Plan F's extra coverage might not be cost-effective. If the additional cost is more than the Part B deductible, it might be better to stick with Plan G.