What is a Medicare Supplement Plan?

Medicare supplement plans, also known as Medigap, are plans that work directly with Medicare to help alleviate some of the uncovered costs associated with Medicare. When using a Medigap plan, Medicare first covers their portion of your medical bills, and then your Medicare Supplement plan will cover the remaining out-of-pocket costs. Medicare supplement plans can help to significantly lower your costs and increase your medical benefits. Medigap plans are designed to help cover the “gaps'' in original Medicare coverage such as :

• Deductibles
• Copayments
• Coinsurances

Because they are standardized, Medigap plans offer the same basic benefits regardless of which private insurance company you decide to purchase from. The cost of each plan can vary depending on the policy you choose and your location. Medigap plans are recognized in most states by a series of letters.

The chart below helps to break up the information and give a side-by-side visualization of the benefits that Medigap plans can cover.

It is important to assess your personal needs before deciding on a Medigap plan. The best plan for you will depend on which parts of Medicare that have the most “gaps” and the cost of the plans to fill them. The best Medigap policy should cover the areas that you expect to spend the most on healthcare. There should be a balance between your coverages and costs.

In the past, two of the most commonly purchased Medigap policies were plans C and F. Unfortunately, new regulations don’t allow these plans to be purchased by new enrollees any longer.

While each plan can offer a set of benefits that might be better for your personal coverage needs, we have narrowed it down to the 3 best Medigap plans available in 2021 related to the most common benefits needed - Plan G, Plan K, and Plan N.

Medicare supplement Plan G provides the most coverage for seniors. Plan G covers almost everything except the Medicare Part B deductible. This means that you would be responsible for your Part B premium ($203 for the year 2021) before your Medigap benefits begin to pay for anything.

Although plan G provides the most comprehensive coverage, it also comes with appropriately higher premiums . Plan G actually has the highest premium price of all of the Medigap plans, costing up to $473 each month. You should compare this monthly premium with your expected medical costs for the year to be sure that you are choosing the most beneficial plan.

Medigap supplement Plan K may be a great option for you if you are looking for an inexpensive option that still provides some coverages. It is vital to assess your health care needs before choosing this option as it only provides 50% coverage for several commonly needed coverages such as skilled nursing, Part A hospice and deductible, Part B coinsurance, and blood. This can lead to some expensive out-of-pocket costs.

However, if you choose Medigap Plan K, you can expect a much lower monthly premium, costing only between $62 and $135 each month.

Supplement Plan N is a good choice if you are looking for a plan that offers many of the comprehensive benefits that Plan G offers but at a lower cost. Unfortunately, Plan N does not provide coverage for Medicare Part B excess charges, which can quickly add up during routine medical care.

On the other hand, Plan N costs significantly less than Plan G, averaging between $146-$289 each month.

Medicare Supplement plans can help you avoid unexpected out-of-pocket costs related to your health care. For more help finding the best Medigap plan for all your healthcare needs, fill out this simple online form and one of our highly-trained SAO Medicare staff will reach out to assist you with all your touch Medigap questions.