In 2023, most seniors have access to 12 distinct Medicare Supplement (Medigap) plans. These options consist of ten standard Medigap plans and two high-deductible plans. In order to choose the most suitable plan for your needs, it is essential to compare all available options. Our Medicare Supplement plans comparison chart provides an easy-to-read breakdown of each plan, making it simpler than ever to review your choices. We will guide you on how to compare Medicare Supplement plans, the benefits and costs of each plan, and assist you in determining which option is best suited for you. However, it is important to note that there is no single plan that is the best fit for all seniors. To find the right plan, it must meet your healthcare requirements while also fitting into your budget.
What is a Medicare Supplement Plan?
Medicare Supplement Insurance, also known as Medigap, is a type of health insurance designed to assist in covering costs that are not included in Original Medicare, such as select copayments, coinsurance, or deductibles. Medigap functions as supplementary insurance rather than primary coverage. To be eligible to purchase a Medigap plan, you must already have Medicare Part A and Part B. The plans vary in coverage, out-of-pocket limits, and premiums. Private health insurance companies sell these policies, and the plans adhere to standardization.
What you should know about Medicare Supplement Insurance plans
If you’re considering Medicare Supplement Insurance plans, there are some important things to keep in mind. Here are the basics of how these plans operate:
- Medigap plans are designed to cover one individual. If your partner or spouse would also like to obtain coverage, they’ll need to purchase a separate policy.
- Health insurance providers cannot cancel a standardized Medigap plan due to health issues. These policies are guaranteed renewable as long as you continue to pay your premiums.
- Medigap policies do not cover prescription drugs. You’ll need to purchase a separate Medicare Part D Prescription Drug Plan to obtain coverage for medications.
- You cannot purchase Medigap coverage if you have Medicare Advantage. It’s actually illegal for anyone to sell you a Medigap plan if you currently have a Medicare Advantage Plan. If you switch back to Original Medicare, you can obtain a Medigap plan, but you may be denied coverage or charged higher premiums if you enroll after your Medigap open enrollment period.
- Medigap policies do not cover additional benefits, such as dental care, vision care, hearing aids, long-term care, eyeglasses, or private-duty nursing.
- Some plans are no longer available. For instance, Plans E, H, I, and J are no longer sold, although if you already have one of these plans you can continue with it. Additionally, people who become eligible for Medicare after Jan. 1, 2020 cannot purchase Plans C and F, which cover the Medicare Part B deductible. However, if you turned 65 prior to that date and haven’t yet enrolled in Medicare Part B due to employer group coverage, you may be able to purchase Plans C and F when you do enroll.
What are the Types of Medicare Supplement Plans?
If you’re thinking about obtaining a Medigap policy, it’s important to have an understanding of what each plan covers. In most states, there are 10 standardized Medigap plans available, each with varying coverage for services, out-of-pocket limits, and premium costs. (Massachusetts, Minnesota, and Wisconsin have different standards.)
Choosing the best plan for you will depend on several factors, including your location, health status, potential healthcare needs, financial situation, and willingness to assume risk. The following table categorizes the 10 standard Medigap plan types to help you determine which plans may be the most appropriate for your needs:
Medicare Supplement Plans Comparison Chart for 2023
Here is a comparison chart for Medicare Supplement Insurance plans, which can assist you in determining the coverage offered by each plan type, as per Medicare.gov.
*In certain states, Plans F and G offer a high-deductible plan option. This means that you must bear the cost of Medicare-covered expenses (such as coinsurance, copayments, and deductibles) up to a deductible of $2,700 in 2023, after which your coverage will commence.
**Under Plan N, all of the Part B coinsurance is covered, with the exception of a copayment of up to $20 for certain office visits and a copayment of up to $50 for emergency room visits that don’t result in hospitalization.
***For Plans K and L, once you reach your out-of-pocket yearly limit and the annual Part B deductible, the plan will cover 100% of eligible services for the remainder of the year.
How to Compare Medicare Supplement Plans
When it comes to comparing Medicare Supplement plans, the process can seem overwhelming due to the numerous plan options available. However, there are several key factors to consider when making comparisons:
- Benefits: You should evaluate your specific needs and then compare each plan to see which offers the necessary benefits. Enrolling in a plan that offers too much coverage can drive up your premium beyond your budget, while enrolling in a plan that offers too few benefits can result in higher out-of-pocket costs. It’s essential to find a plan that meets all your needs.
- Monthly premium: The cost of the plan is a crucial factor to consider, as it affects your budget. You should compare the monthly premium of each plan to determine which one is affordable for you.
- Availability in your area: The availability of plans may vary depending on your location. You should check which plans are available in your area before making a decision.
- Carriers: Different insurance carriers offer Medigap plans, and their reputation and customer service are essential factors to consider when making comparisons.
Ultimately, the right Medicare Supplement plan for you is one that combines necessary benefits and affordable monthly premiums, and is offered through a reputable carrier in your area. In addition to choosing the right plan letter, it’s crucial to consider availability and carrier reputation when making your decision.
How Much Does Medigap Insurance Cost?
Comparing the monthly premiums and out-of-pocket costs of each Medigap plan is crucial as they can vary significantly. Even if you have a Medigap plan along with Original Medicare, you will still have to pay the following expenses:
- Medicare Part B premium (and IRMAA if applicable)
- Medicare Part A premium (if applicable)
- Medigap plan premium
- Medicare Part B Deductible (all Medigap plans except Plan C and Plan F)
- Copayments (not applicable on all plans)
- Coinsurance (not applicable on all plans)
The cost of Medigap insurance varies depending on the plan you choose. Some plans require copayments and deductibles, while others like Medigap Plan F only require seniors to pay a deductible before coverage kicks in at 100%. However, first-dollar coverage (meaning no deductible) is no longer available for those who are new to Medicare.
It is possible to get comprehensive coverage at an affordable price with plans like Medigap Plan G if you enrolled in Medicare in 2020 or later. Understanding the out-of-pocket expenses associated with each plan is crucial to decide which plan is best suited to your needs.
Frequently asked questions
What is the average cost of Medicare Supplement plans?
In 2023, the average cost of a Medicare Supplement plan is around $139 per month. However, the cost can vary significantly due to factors such as the type of plan, location, and age. Some people pay less than $50 per month, while others pay more than $400.
Which is the most popular Medicare Supplement plan?
Plan F and Plan G are the two most popular Medigap plans. Plan F is only available to those who qualified for Medicare before 2020, but it remains a popular choice due to its comprehensive benefits. Approximately 46% of Medicare Supplement enrollees have opted for this plan. Plan G, on the other hand, is the most popular choice for those who are newly eligible for Medicare, with 27% of the market share.
Which is the least expensive Medicare Supplement plan?
Plan K is the least expensive Medigap plan, with an average monthly cost of $77 in 2023. For those who want to protect themselves against major medical expenses, high-deductible Plan G is a low-cost option, with an average monthly premium of $47.
How to Learn More About Comparing Medigap Plans
To enroll in the best coverage, comparing Medigap plans is an essential yet straightforward task. At Health Plans in Oregon, we aim to make it easy for you to compare policies and stay updated with any changes regarding Medicare.
Our goal is to educate you on everything you need to know about Medicare so that you can make an informed decision based on your needs. Our agents are available to assist you in comparing Medigap plans and finding the best healthcare coverage for you.
Need help? Call Health Plans in Oregon: 503-928-6918. Our assistance is at no cost to you.
*By completing this form, you agree that an authorized representative or licensed insurance agent may contact you by phone,email,text, mail or face to face to answer your questions or provide additional information about your Medicare plan options. Not affiliated or endorsed by Medicare or any state or federal governmental agency.
