When it comes to selecting the right Medicare Supplement plan, it is important to understand all your options. If you’ve opted for Original Medicare along with a Medicare Supplement plan (also referred to as a Medigap Plan), as opposed to a Medicare Advantage plan, you might be wondering which Supplement plan and company to choose.
In this guide, we have given you everything you need to know to make an informed decision. We’ll walk you through the available Medigap plans and provide insights on how to choose the best one for your needs.
Understanding Medicare Supplement Plans
Medicare Supplement plans are designed to pay after Original Medicare. This means that you can see any Medicare provider nationwide without needing a referral.
There are ten different standardized Medigap plans available, each of which is identified by a letter such as Plan F and Plan G. The standardization means that the benefits are identical regardless of the insurance company offering the plan.
Shopping Around
In most states, there are over 20 insurance companies offering the same plan. For example, in California, there are more than 25 different insurance companies offering Plan G, each with varying prices. While the benefits of Plan G remain the same, the prices can vary significantly depending on the insurer. Therefore it is essential to shop around to make sure you’re not overpaying.
Popular Medigap Plans
Out of the ten standardized Medigap plans, the most popular ones are Plans F, G, N, and the high-deductible Plan G. Let’s take a closer look at what makes these plans so popular by analyzing the coverage and average premiums for each.
Plan F
Medicare Supplement Plan F is popular among long-time Medicare users because it covers 100% of everything that Medicare doesn’t pay in full. This means there are no copayments or deductibles. However, as of 2020, Medicare does not permit new enrollees to purchase Plan F. If you turned 65 on or after January 1, 2020, Plan F isn’t available to you.
For those already enrolled in Plan F before this date, you can continue with the plan indefinitely. Additionally, if you turned 65 before January 1, 2020, you can still purchase Plan F even if you never had it before or if you previously had a different plan like Plan G or a Medicare Advantage plan.
Plan F Pricing
For a 70-year-old female in Houston, TX, with a competitive carrier, Plan F premiums range between $135 – $150 per month, but they can be much higher depending on the insurance company.
Plan G
In 2024, Plan G has become the most popular choice because it offers comprehensive coverage and is available to all Medicare beneficiaries, especially since new Medicare enrollees can no longer choose Plan F.
Medicare Supplement Plan G offers benefits very similar to Plan F, with the primary difference being no coverage for the Medicare Part B deductible, which is $240 in 2024. There are no other out-of-pocket costs on Plan G as long as the services are Medicare-approved.
Plan G Pricing
For a 65-year-old female in Houston, TX, with a competitive carrier, Plan G premiums range between $105 – $130 per month, though these can be higher depending on the carrier.
Plan N
Medicare Supplement Plan N offers great value but is often overlooked compared to Plan G. Plan N shares the same deductible as Plan G, which is $240 in 2024 for doctor’s office and outpatient services.
Plan N also requires copays at the doctor’s office—ranging from $0 to $20 per visit—and $50 at the ER unless you are admitted. One key difference is that Plan N does not cover Part B excess charges. These charges occur if you visit a doctor who doesn’t accept “Medicare Assignment,” allowing them to overcharge the Medicare-approved amount by up to 15%.
However, over the past decade, we’ve found this to be rare, as most doctors who accept Medicare also accept Medicare assignment. You can easily check if a doctor accepts Medicare assignment on Medicare.gov.
Who Is Plan N a Good Fit For?
Plan N may suit you if you’re comfortable with paying some office visit copayments and confirming that your doctor accepts Medicare assignment to avoid Part B excess charges. By opting for Plan N, you will also enjoy a lower monthly premium than Plan G.
Plan N Pricing
For a 65-year-old female in Houston, TX, with a competitive carrier, Plan N premiums range between $80 – $100 per month.
High-Deductible Plan G
Our final plan is the High-Deductible Plan G which should not be confused with regular Plan G. This plan features an annual deductible—$2,800 for Medicare-approved services in 2024 —that must be met before coverage begins. Once the deductible is met, the policy covers 100% of expenses for the rest of the year, and the deductible resets each January 1st.
High-Deductible Plan G is ideal if you prefer lower premiums, value the freedom to see any Medicare provider nationwide, and don’t mind meeting the deductible in case of medical events.
High-Deductible Plan G Pricing
For a 65-year-old female in Houston, TX, with a competitive carrier, premiums for High-Deductible Plan G range between $40 – $50 per month.
Bluewave Insurance Is Here to Help
Do you still have questions about choosing the right Medigap plan for your needs? Would you like professional advice on comparing Plan F, Plan G, Plan N, or High-Deductible Plan G? Are you unsure which Medicare Supplement plan offers the best value for your specific situation? No matter the issue, Bluewave Insurance is here to help.
If you have any further questions about Medicare or want to learn more about the different Medigap options, call us at 800-208-4974 today!
Alex Wender is the founder and CEO of Bluewave Insurance. He has been blogging about Medicare-related topics since 2010. Since then, he and his agency have helped thousands of people across the country choose the right Medicare to fit their needs.
