The cost of Medicare supplement insurance, also known as Medigap, varies depending on the plan provider and the coverage options.
A person with Original Medicare can sign up for the optional Medigap insurance policies. Yet, due to the differences in cost and coverage of these plans, a person may want to research which plan best suits their personal needs.
A person will also usually need to pay for the costs of Original Medicare parts A and B to be eligible for Medigap.
This article discusses Medigap and the differences between the plans. It also examines eligibility, enrollment, and costs.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
The cost of premiums for Medigap plans will vary widely depending on the plan letter and insurance provider. A person can compare the costs of Medigap plans in their area using the search tool on the Medicare website.
The monthly premium is the only difference in price between policies with the same plan letter, regardless of the insurance provider.
For example, Medigap Plan K will always cover 50% of the Medicare Part A deductible. In 2024, the Part A deductible is $1,632, so Plan K will cover $816.
View the information below for a breakdown of the costs by plan in 2024. A person will need to use the search tool on the Medicare website or contact Medigap to find out about monthly premiums for specific plans.
In addition to the costs below, a person will also usually need to pay the costs of Medicare Part A and Part B. In 2024, this will include the Part B premium of $174.70. Most people do not pay a premium for Part A.
Plan A
A person with Plan A will be responsible for paying:
- Part A deductible of $1,632
- Part B deductible of $240
- Part B excess charges
- any skilled nursing facility care coinsurance costs
- any foreign travel emergency care
Plan B
A person with Plan B will be responsible for paying:
- any skilled nursing facility care coinsurance costs
- Part B deductible of $240
- Part B excess charges
- any foreign travel emergency care
Plan C
A person with Plan C will be responsible for paying:
- Part B excess charges
- 20% of foreign travel emergency care
Plan D
A person with Plan D will be responsible for paying:
- Part B deductible of $240
- Part B excess charges
- 20% of foreign travel emergency care
Plan F
A person with Plan F will be responsible for paying:
- 20% of foreign travel emergency care
Plan F high deductible plan
A person with a high deductible Plan F will be responsible for paying:
- total plan deductible of $2,800
- 20% of foreign travel emergency care, after the individual has paid a $250 deductible
Plan G
A person with Plan G will be responsible for paying:
- Part B deductible of $240
- 20% of foreign travel emergency care
Plan G high deductible plan
A person with a high deductible Plan G will be responsible for paying:
- Part B deductible of $240
- additional plan deductible of $2,800
- 20% of foreign travel emergency care, after the individual has paid a $250 deductible
Plan K
A person with Plan K will be responsible for paying:
- Part A deductible of $816, which is 50% of the total deductible cost of $1,632
- 50% of the Part A hospice care coinsurance or copayment
- Part B deductible of $240
- Part B excess charges
- 50% of the Part B coinsurance or copayment
- Part B coinsurance is usually 20% of the Medicare-approved cost.
- 50% of skilled nursing facility care coinsurance costs
- 50% of the cost of the first three pints of blood
- any foreign travel emergency care
Plan K has an out-of-pocket limit of $7,060. This means that once the individual has paid this amount in out-of-pocket costs, Medigap will pay for 100% of the costs for approved services for the rest of the year.
Plan L
A person with Plan L will be responsible for paying:
- Part A deductible of $408, which is 25% of the total deductible cost of $1,632
- 25% of the Part A hospice care coinsurance or copayment
- Part B deductible of $240
- Part B excess charges
- 25% of the Part B coinsurance or copayment
- 25% of the cost of the first three pints of blood
- 25% of skilled nursing facility care coinsurance costs
- any foreign travel emergency care
Plan L has an out-of-pocket limit of $3,530.
Plan M
A person with Plan M will be responsible for paying:
- Part A deductible of $816, which is 50% of the total deductible cost of $1,632
- Part B deductible of $240
- Part B excess charges
- 20% of foreign travel emergency care
Plan N
A person with Plan N will be responsible for paying:
- Part B deductible of $240
- Part B excess charges
- 20% of foreign travel emergency care
It is important to note that Plan N does not pay for copayments for some emergency room and doctor’s office visits.
Learn more about comparing Medigap plans.
Several factors influence the monthly premium costs of a Medigap plan. Costs of the plan will vary widely, depending on factors such as:
- the specific plan
- the insurance company
- where a person lives
Insurance companies generally calculate plan premiums based on three ratings:
- Attained-age-rated: An attained-age rating means the policy cost increases as a person gets older.
- Community-rated: Also called no-age-rated, the premium for a community-rated plan is not affected by a person’s age. If there is a price increase, it might be because of economic factors.
- Issue-age-rated: Also called entry-age-rated, premiums based on issue-age rating are lowest for a person who gets the plan at a younger age, and any changes in premium are unrelated to a person’s age.
SELECT
A person may pay a lower premium if they have a Medicare SELECT policy.
However, the policies generally limit the list of providers from which a person can choose to get a Medigap plan.
It may also be necessary to use hospitals and doctors within the network to receive the full benefits of the plan.
Other factors
There may be other factors affecting the premium costs, such as discounts for a nonsmoker or for making payments electronically.
If a plan uses medical underwriting, that may also affect the premium. Medical underwriting involves looking at a person’s medical history to evaluate their health insurance application.
Medigap plans are identified by letters, including A, B, C, D, F, G, K, L, M, and N.
Plan C and Plan F are no longer available to a person who is new to Medicare. This is because Medigap plans can no longer cover the Medicare Part B deductible, and both of these plans covered the deductible.
Medigap plan providers do not have to offer every plan, but they must offer at least Medigap Plan A and either Plan C or Plan F. Medicare standardizes the plans across all states except for:
- Massachusetts
- Minnesota
- Wisconsin
Plans with the same letter must offer the same benefits, no matter where in the country the plan holder lives or which company provides the plan.
Medigap plans do not generally cover such items as dental or vision care, hearing aids, or long-term care.
While a person must be enrolled in Original Medicare (parts A and B) to be eligible for a Medigap plan, a person with a Medicare Advantage (Part C) plan cannot have a Medigap plan.
Learn about the difference between Medicare Advantage and Medigap.
A person must be enrolled in Original Medicare (parts A and B) before getting a Medigap plan. However, a person with a Medicare Advantage (Part C) plan cannot enroll in a Medigap plan.
A person can get a Medigap plan during the 6-month Medigap open enrollment period (OEP), which starts the first day of the month when a person turns 65 years old and has enrolled in Medicare Part B.
If a person wants to enroll after the Medigap OEP, the company offering the plan may ask for medical underwriting, which may be used to decide whether to offer a person a plan.
The online tool on the Medicare site can help a person search for Medigap providers in their area and compare plans.
For impartial advice about Medigap plans, a person can call 800-MEDICARE (800-633-4227) or contact their State Health Insurance Assistance Program.
Learn more about the Medigap OEP.
What Medigap plan is most popular?
Medigap Plan F is the most popular plan, according to the Medicare Payment Advisory Commission in 2021. There were around 6.8 million people enrolled in Plan F.
However, it is important to note that, since January 1, 2020, new enrollees are unable to choose Plan F. This is because plans sold after this time no longer include the Medicare Part B deductible.
What is the average cost of a Medigap plan?
The cost of Medigap plans varies widely, as the premium will depend on factors such as the plan letter and the specific insurance provider a person chooses.
Some Medigap plans also cover some or all coinsurance and deductible costs, while other plans do not.
A person can use the online tool to compare the costs of Medigap plans in their area.
What is the downside to Medigap?
A person cannot have Medigap and Medicare Advantage at the same time. Medigap also does not usually offer dental, hearing, and vision coverage. However, many Medicare Advantage plans offer these benefits. This means that some people may find a Medicare Advantage plan more suitable than a Medigap plan.
Medigap helps reduce Medicare out-of-pocket costs. While policies are generally standardized, premiums vary, and not all plans are available in all areas.
Some Medigap plans help with the costs of coinsurance and deductibles. However, since 2020, new enrollees must always pay the Part B deductible. This means that Plan C and Plan F are not available to new enrollees.
The government provides free resources, such as the SHIP program, to help people choose the Medigap plan for their individual needs.