Medicare Supplement (Medigap) Plans

• Admin
• 25 Jan 2025

Medicare Supplement (Medigap) Plans

If you are going to get your Medicare benefits through Original Medicare Part A and Part B, you may be concerned about the potential for high medical costs—especially if you experience an unexpected health issue that requires chronic care or extensive treatment. Original Medicare includes coverage for inpatient hospital and medically necessary outpatient care, but there are costs that you’ll share, including coinsurance, deductibles, and copayments. And, without an annual out-of-pocket maximum limit, your expenses with Original Medicare can add up.

Let’s explore how a Medicare Supplement (Medigap) plan can help:

What is Medigap?
Many people who have Original Medicare choose to buy supplemental coverage to help cover some of the costs that Original Medicare does not. Medicare Supplement plans, also known as Medigap, are offered by private insurance companies. Even though they are standardized and regulated by the federal government, Medigap plans can vary in cost and coverage depending on the insurer and your location.

Guaranteed Issue Rights
You’ll have a guaranteed issue right to purchase a Medicare Supplement policy during your Medigap Open Enrollment Period. This period begins the first day of the month you are 65 or older and enrolled in Medicare Part B. During this 6-month period, you can buy any Medigap plan sold in your state without being denied coverage or charged more based on your health status or pre-existing conditions.

After this period ends, insurers may require medical underwriting to determine your eligibility and pricing. That means you could be denied coverage or charged a higher premium if you have health issues.

Choosing a Medicare Supplement Plan
Medicare Supplement plans are standardized and identified by letters A through N. Each lettered plan offers a different set of basic benefits, but the coverage under each letter is the same regardless of the company offering it. For example, a Plan G from one insurance company offers the same benefits as a Plan G from another.

Plan A is the most basic coverage, and all insurers that sell Medigap policies must offer it. Plan G is currently one of the most comprehensive plans available, covering most out-of-pocket expenses not paid by Original Medicare, except the Part B deductible.

Because these plans are sold by private insurers, the monthly premium amounts can vary significantly. Be sure to compare costs and benefits to find a plan that best fits your health needs and budget.