What is Medigap?

(Medicare Supplement)

​Medigap plans (also known as Medicare Supplement plans) have been around for a long time. They are the types of plans that many people say, “I think that is what my parents had.” There have been many changes to Medigap Plans over the last 20+ years, but the basic principle remains the same. Medicare Supplement plans pay as a secondary insurance, meaning that they pay after Medicare has paid, (this is where they got the name). Medicare pays 80% of a person’s medical bills, and the supplement plan (purchased through a private insurance company) comes in and pays afterward, (pays the gap).

​Medigap rules are simple: if Medicare pays first on a claim, the supplement will pay next. However, if Medicare does not cover something, neither does the supplement plan. Stated simply since Medicare does not cover things like Part-D prescription drugs, dental, vision, and hearing, neither will the supplement plan. These items must be picked up separately in the forms of Part-D prescription drug plans and Dental, Vision and Hearing plans. 

What Kinds of Medigap Plans Exist?

Medicare Supplement plans are designed by Medicare and then given to private insurance companies to market. What this means is that that the insurance company has no control over what the coverage looks like, (what is covered). They are required to take the plans as they are. The two things that the insurance company does control is how much the monthly premiums are and what the rate increases will be going forward.

​imply stated every insurance company that offers Medicare supplement plans offer the same coverage, the only difference is the price, and possibly the customer service. The Supplement plans are designed based on what they will cover depending how much Medicare leaves behind. They are all named after letters. The most popular Medicare Supplement plans on the market today are by far the Plan G and the Plan N. Here is a chart of the available plans below.

What Plans Are Good?

For all those that became or are becoming Medicare eligible after January 1, 2020, it is all about Plans G and N. Because plans F and C are no longer able to be purchased due to the MACRA bill that took effect on January 1, 2020. The bill states that any person who was eligible for Medicare before January 1st of 2020 will still have the option of purchasing a Plan F or Plan C with any insurance company. Plan G is the closest thing to Plan F because it only leaves behind the Medicare Part-B deductible which is charged once per year.

​The Plan N also charges this Medicare-Part B deductible, but it also does not cover what is known as Medicare Part-B’s excess charges. It also charges up to a $20 copay for each doctor visit and a $50 copay for an emergency room visit. The appeal of Plans G and N over a Plan F (even before it was grandfathered away) was that they both are much cheaper in terms of monthly premium, with N being cheaper than F and G in most areas. 

“We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.”