Navigating Medicare can feel overwhelming, especially when it comes to filling the coverage gaps left by Original Medicare (Parts A and B). That’s where Medicare Supplement Plans, also known as Medigap, come in. These plans are offered by private insurance companies and are designed to help cover out-of-pocket costs such as copayments, coinsurance, and deductibles.
With ten standardized plans available in most states (Plans A through N), choosing the right one depends on your healthcare needs and budget. To help make your decision easier, O’Neal has a breakdown of the top five Medicare Supplement Plans based on coverage, value, and popularity among beneficiaries.
1. Plan G – The Most Comprehensive Option for New Enrollees
Medigap Plan G is currently one of the most popular choices for new Medicare beneficiaries. It provides nearly complete coverage of the expenses not paid by Original Medicare. Plan G covers hospital and medical coinsurance, hospice care, skilled nursing facility care, and the Part A deductible, among other costs. It also includes foreign travel emergency coverage within certain limits.
The only major expense Plan G doesn’t cover is the Part B deductible. Once you pay that deductible, Plan G typically covers the rest of your approved Medicare costs for the year. It’s a great choice for those who want predictable, consistent coverage with minimal out-of-pocket expenses.
2. Plan F – The “Full Coverage” Option for Eligible Beneficiaries
Medigap Plan F offers the most comprehensive coverage of all Medigap options. It includes everything covered by Plan G, plus the Part B deductible. However, Plan F is only available to individuals who became eligible for Medicare before January 1, 2020.
For those who qualify, Plan F remains a strong choice because it virtually eliminates out-of-pocket costs for Medicare-approved services. Many people appreciate the simplicity of paying one monthly premium and having nearly all other costs covered.
If you’re newly eligible for Medicare, Plan G is the closest alternative, offering nearly the same benefits at a slightly lower premium.
3. Plan N – Balanced Coverage with Lower Premiums
Medigap Plan N offers solid coverage for those seeking a balance between affordability and protection. It includes most of the same benefits as Plan G but with a few differences. Beneficiaries are responsible for the Part B deductible and may be responsible for small out-of-pocket amounts for certain doctor or emergency room visits. Plan N does not cover Part B excess charges, which are additional fees some doctors may bill beyond Medicare’s approved amount.
Plan N’s premiums are generally lower than those of Plan G, making it a great option for individuals who don’t mind minor out-of-pocket costs in exchange for long-term savings.
4. Plan A – Essential, Foundational Coverage
Medigap Plan A is the most basic plan available, covering core benefits such as Part A hospital coinsurance, Part B coinsurance, and the first three pints of blood. It does not cover deductibles or skilled nursing facility coinsurance.
While it offers less coverage than other plans, Plan A can be a smart option for those in good health who want some supplemental protection at a lower monthly cost. It’s also the only plan that all Medigap providers are required to offer, making it widely available.
5. Plan D – Mid-Tier Coverage for a Balanced Approach
Medigap Plan D offers a middle ground between Plans G and N. It covers hospital and medical coinsurance, skilled nursing facility care, the Part A deductible, and foreign travel emergency coverage within plan limits. It does not cover the Part B deductible or Part B excess charges. Plan D’s premiums tend to be moderate, making it an appealing choice for those who want comprehensive coverage without the higher costs associated with more extensive plans.
Choosing the Right Medicare Supplement Plan
The best plan depends on your health, financial situation, and how much risk you’re comfortable taking on. If you want near-total coverage and simplicity, Plan G is often the best overall choice for new enrollees. Those who were eligible for Medicare before 2020 may prefer Plan F for its complete protection. Meanwhile, Plan N offers excellent value for those willing to handle minor out-of-pocket costs.
Before choosing a plan, compare premiums, review your expected healthcare needs, and consider how often you visit doctors or specialists. With the right Medicare Supplement Plan, you can enjoy peace of mind knowing your healthcare expenses are well managed, allowing you to focus on living a healthy, worry-free retirement.
