What is Medicare Supplement

Medicare Supplement Insurance, also called Medigap, is a private health insurance policy that covers certain costs not included in Original Medicare (Parts A and B). These may include out-of-pocket expenses such as copayments, coinsurance, and deductibles.

How Medicare Supplement Plans Work

Key Features of Medicare Supplement (Medigap) Plans

Standardized Benefits: Most states standardize Medigap plans into types identified by letters (e.g., Plan F, Plan G, Plan N), with each same-letter plan offering the same core benefits, regardless of the provider.
Choice of Provider: Medigap can be used with any medical provider who accepts Medicare, allowing access to doctors or specialists nationwide who participate in Medicare.
No Referrals Needed: Referrals are generally not required to see specialists.
Does Not Include Prescription Drug Coverage: Most Medigap policies exclude prescription drugs; separate enrollment in a Medicare Part D plan is needed for drug coverage.
Renewable Coverage: As long as premiums are paid, Medigap policies are renewable, even if health status changes.

Costs and Enrollment

Monthly Premiums: Medigap requires an additional premium aside from the Medicare Part B premium.
When to Enroll: The optimal time for purchasing a Medigap policy is during the six-month Medigap Open Enrollment Period, starting when the individual is both 65 or older and enrolled in Medicare Part B. During this period, there is a right to purchase any available Medigap policy without consideration of health status.
Medical Underwriting: Applying outside the open enrollment window may result in medical underwriting, which could affect eligibility or result in higher premiums.

Medicare Supplement F

Medicare Supplement Plan F is considered the most comprehensive Medigap policy, covering all out-of-pocket costs left by Original Medicare, including deductibles, coinsurance, copayments, skilled nursing care, and foreign travel emergencies. Plan F is only available to those eligible for Medicare before January 1, 2020; newer enrollees may choose alternatives like Plan G. While Plan F offers simplicity and predictability in medical expenses, its premiums are higher and vary based on factors such as location and age. The plan is guaranteed renewable with paid premiums, regardless of health changes. Individuals should compare costs and coverage to decide if Plan F suits their needs.

Medicare Supplement G

Medicare Supplement Plan G is a popular alternative for those who are either not eligible for Plan F or seeking a balance between comprehensive coverage and premium costs. Like Plan F, Plan G covers nearly all out-of-pocket expenses left by Original Medicare, including Part A deductibles and coinsurance, skilled nursing facility care, hospice coinsurance, and emergency health care during foreign travel. The primary difference is that Plan G does not cover the Medicare Part B deductible; policyholders are responsible for paying this amount each year.
Despite this distinction, Plan G often appeals to new enrollees because its premiums tend to be lower than those of Plan F, potentially offsetting the cost of the Part B deductible. The plan is guaranteed renewable as long as premiums are paid, ensuring ongoing coverage regardless of changes in health status. As with any Medigap policy, individuals should carefully compare benefits, premiums, and individual health care needs before selecting Plan G or any other supplement.

Medicare Supplement N

Medicare Supplement Plan N offers another option for individuals seeking Medigap coverage, balancing cost savings with robust benefits. This plan covers many of the out-of-pocket costs not paid by Original Medicare, such as Part A coinsurance, hospital costs, and skilled nursing facility coinsurance, as well as foreign travel emergency care. However, Plan N requires policyholders to pay the Medicare Part B deductible, along with possible copayments of up to $20 for some office visits and up to $50 for emergency room visits that don’t result in an inpatient admission.
Premiums for Plan N are typically lower than those for Plans F and G, making it an attractive choice for those who are comfortable with modest cost-sharing in exchange for affordable monthly payments. Like other Medigap options, Plan N is guaranteed renewable as long as premiums are paid, and coverage remains stable regardless of changes in health status.
As always, individuals should carefully evaluate their health needs, anticipated medical expenses, and financial situation before selecting Plan N or any other Medicare Supplement plan.