Best Medicare Supplement Plans: Top Plans Compared

With over 25 insurance companies offering Medicare supplement plans in most states, finding the best plan can feel overwhelming. After helping thousands of Medicare beneficiaries navigate these choices, I’ve learned that the “best” plan isn’t the same for everyone — it depends on your health needs, budget, and risk tolerance. Let me walk you through the top Medicare supplement options and help you determine which one makes the most sense for your situation.

How Medicare Supplement Plans Work

Before diving into specific plans, it’s important to understand how Medicare supplement plans differ from Medicare Advantage. Medicare supplement plans (also called Medigap) work alongside Original Medicare, paying after Medicare processes your claim. This gives you the freedom to see any Medicare provider anywhere in the country without referrals or network restrictions.

There are 10 standardized Medigap plans, each assigned a letter. The benefits within each plan are identical regardless of which insurance company you choose — but the prices can vary dramatically. In California, for example, over 25 companies offer Plan G at vastly different rates, which is why shopping around is crucial.

Plan G: The Current Gold Standard

Plan G has become the most popular Medicare supplement plan since Plan F was phased out for new Medicare beneficiaries in 2020. It provides comprehensive coverage with predictable out-of-pocket costs.

What Plan G Covers:

• Medicare Part A deductible ($1,736)
• Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
• Part B coinsurance or copayment
• Blood (first 3 pints)
• Part A hospice care coinsurance or copayment
• Skilled nursing facility care coinsurance
• Part B excess charges
• Foreign travel emergency coverage (up to plan limits)

What You Pay: Only the Medicare Part B deductible ($283) each year. After that, no copayments or out-of-pocket costs for Medicare-approved services.

Average Premium: For a 65-year-old female in Houston, Texas, expect to pay $105–$130 per month, though rates vary significantly by insurance company and your location.

Agent Tip

Many clients assume all Plan G policies are identical, so they just pick the cheapest one. While benefits are standardized, customer service quality, claims processing speed, and rate increase history vary dramatically between companies. Always research the insurance company’s track record, not just their current price.

Plan F: Still Available for Some

Plan F is only available to those who turned 65 before January 1, 2020, or qualified for Medicare due to disability before that date. If you’re eligible, it remains an excellent option.

What Makes Plan F Unique: It’s the only plan that covers the Medicare Part B deductible, meaning you have no out-of-pocket costs for Medicare-approved services (other than your premium and the monthly Part B premium).

Average Premium: For a 70-year-old female in Houston, Texas, expect $135–$150 per month.

The question many Plan F holders face is whether to switch to Plan G to potentially save on premiums. The math usually works if your monthly savings exceed the annual Part B deductible divided by 12.

Plan N: The Budget-Conscious Choice

Plan N offers substantial coverage at a lower premium, making it attractive for those comfortable with small copayments and willing to verify their doctors accept Medicare assignment.

What Plan N Covers: Everything Plan G covers except Part B excess charges (the 15% extra some doctors charge above Medicare’s approved amount).

What You Pay:

• Medicare Part B deductible ($283)
• Up to $20 copayment for doctor visits
• Up to $50 copayment for emergency room visits (waived if admitted)
• Part B excess charges (if your doctor doesn’t accept Medicare assignment)

Average Premium: For a 65-year-old female in Houston, Texas, expect $80–$100 per month.

The key consideration with Plan N is Part B excess charges. These occur when doctors don’t accept “assignment” (Medicare’s approved amount as full payment). However, most Medicare-accepting doctors do accept assignment, and you can verify this on medicare.gov before appointments.

High Deductible Plan G: Maximum Premium Savings

Don’t confuse this with regular Plan G — High Deductible Plan G is a separate plan with a different structure entirely.

How It Works: You pay the first $2,950 of Medicare-approved services each year. After meeting this deductible, the plan covers 100% of what regular Plan G would cover. The deductible resets each January 1st.

Average Premium: For a 65-year-old female in Houston, Texas, expect $40–$50 per month.

This plan works well for those who want the lowest possible premiums while maintaining the freedom to see any Medicare provider. You’re essentially self-insuring the first $2,950 of costs each year in exchange for dramatically lower premiums.

Agent Tip

I often see people choose High Deductible Plan G thinking it’s “almost free coverage,” but then panic when they get their first medical bill. Make sure you’re comfortable with potentially paying $2,950 out-of-pocket each year before choosing this option. If that amount would strain your budget, stick with Plan G or Plan N.

Comparing Your Options

Plan	Monthly Premium*	Annual Deductible	Doctor Visit Costs	Best For
Plan F	$135–$150	$0	$0	Those eligible who want zero out-of-pocket costs
Plan G	$105–$130	$283	$0	Most people wanting comprehensive, predictable coverage
Plan N	$80–$100	$283	$0–$20	Budget-conscious with low medical usage
High Deductible Plan G	$40–$50	$2,950	You pay until deductible met	Healthy individuals wanting lowest premiums

*Premiums shown for 65-year-old female in Houston, Texas. Your rates will vary by location, age, gender, and insurance company.

Factors Beyond Plan Benefits

While plan benefits are standardized, several other factors should influence your decision:

Insurance Company Financial Stability: Look for companies with strong AM Best ratings. You want an insurer that will be around to pay claims for decades.

Rate Increase History: Some companies have aggressive pricing initially but steep rate increases later. Research the company’s rate increase patterns over the past 5-10 years.

Customer Service: Claims processing efficiency and customer service quality vary significantly between insurers. Read customer reviews and check complaint ratios with your state insurance department.

Underwriting Requirements: If you’re applying outside your guaranteed issue period, some companies have more lenient health questions than others.

Special Considerations by State

Certain states have special rules that can affect your plan choice:

California: The Birthday Rule allows you to switch to a lower-cost plan of the same type within 30 days of your birthday each year without health questions.

Pricing Methods: Understanding whether your state uses attained-age, issue-age, or community-rated pricing helps you project future costs.

Making Your Decision

Most people find Plan G offers the best balance of comprehensive coverage and reasonable premiums. However, your choice should depend on:

• Your health status: Frequent doctor visits make Plan G more valuable than Plan N
• Your budget: High Deductible Plan G works if you can comfortably handle $2,950 in annual costs
• Your risk tolerance: Plan N saves money if you’re comfortable with small copayments and potential excess charges
• Your travel plans: All these plans include foreign travel emergency coverage

Remember, you can’t switch between Medicare supplement plans without answering health questions after your initial enrollment periods, so choose carefully. The goal is finding a plan you’ll be happy with for years to come.

Frequently Asked Questions

Can I switch between Medicare supplement plans later?

Yes, but you’ll typically need to answer health questions and may be declined if you have pre-existing conditions. The exception is during your 6-month open enrollment period when you first get Medicare Part B, or if you qualify for a guaranteed issue situation.

Why do Medicare supplement plan prices vary so much between insurance companies?

While benefits are standardized, insurance companies can set their own rates based on their claims experience, overhead costs, and profit margins. This is why shopping around is so important — you could save hundreds per year for identical coverage.

Should I choose the cheapest Medicare supplement plan available?

Not necessarily. Consider the insurance company’s financial stability, rate increase history, and customer service record. The cheapest plan today might not be the cheapest in five years if the company has a pattern of steep rate increases.

Do I need a Medicare supplement plan if I have other insurance?

It depends on your other coverage. If you have employer insurance or VA benefits, you might not need a supplement plan immediately. However, you should understand how these interact with Medicare and consider future needs.

What happens to my Medicare supplement plan if I move to another state?

Most Medicare supplement plans provide coverage anywhere in the United States. However, if you move, you might want to shop for better rates with companies in your new state, though this would require underwriting unless you qualify for guaranteed issue rights.