Medicare supplement plans, also called Medigap, are private insurance policies that help fill in the gaps left by Original Medicare (Parts A and B). Medicare Parts A and B pay for some expenses but leave many others up to you, including deductibles and coinsurance rates. A Medicare supplement policy helps pay those costs and may have additional benefits such as foreign travel and vision care. Medicare supplement plans are offered by private insurers and are regulated by the state insurance departments. During open enrollment or guaranteed issue periods, insurance companies can’t use your health history to deny you or charge more for coverage. Learn more about how Medicare supplement plans can enhance your coverage and provide financial protection.
Currently, there are 10 different standardized Medicare supplements available: Plan A through Plan N. Although coverage varies among insurers, you can expect all Plans to cover the same amount of Medicare’s gap charges. Plans C and F are no longer available to new Medicare enrollees, in an effort to limit growing costs. Plan G remains the most popular supplement, offering a comprehensive solution to covering all gaps with no cost-sharing. In contrast, Plans K and L require you to pay a portion of the cost in exchange for lower premiums.
As a general rule, the more comprehensive the coverage, the higher the premium. But there are other factors to consider as well, such as your age and tobacco status. Insurance agents who specialize in Medicare supplement plans can assist you in finding the best fit for your specific circumstances.
You can purchase a Medicare supplement at any time after you turn 65, join Medicare Part B, and are accepted into the plan. The best time to buy is during your open enrollment period, which begins the first day of the month you’re both age 65 and enrolled in Medicare Part B.
If you choose to apply for a Medicare supplement outside of the open enrollment or guaranteed issue period, an insurance company can deny your application or charge more for coverage due to your health history. However, in some states, you’re able to buy a Medicare supplement without underwriting (adding a health history question) when you apply during your guaranteed issue or open enrollment period or when you have prior creditable coverage that lasts six months or more.
Choosing the right Medicare supplement plan can be overwhelming, especially when you’re juggling work, family, and other commitments. Fortunately, there are tools that can make the process easier and help you find an affordable option. Use Medicare’s interactive website tool to compare standardized Medicare supplement plan options and rates in your area. You can even select a specific plan to see how the coverage differs by insurer and whether it includes discounts and other information that may affect your rate. You can even enter your specific health status and preferences to get a personalized list of Medicare supplement plans you might want to review further.