2021 Medicare Supplement Plans Comparison Chart
Medicare supplements, which are identified by plans A – N, cover the gaps in Original Medicare coverage. That’s why Medicare calls them Medigap plans.
One of the most beneficial aspects of the lettered plan system is that it lets you compare supplemental Medicare plans side-by-side. To make it as easy as possible to see what you get with each plan, we created a Medicare supplement plans comparison chart (below).
Every year the Centers for Medicare and Medicaid Services (CMS) updates Medigap plan information. The plans themselves don’t change, however, the annual limit on plans with out-of-pocket limits and the deductible on plans with high deductibles change. If you choose one of these plans, you’ll want to check for these changes annually.
Medicare Supplement Cost Comparison
As you look at the chart to find one or two plans with the level of coverage you want, simply keep in mind that plans offering more coverage have higher premiums, and plans with less coverage have lower premiums. Ideally, you’ll want to strike a good balance between the potential risk and reward.
Once you find the lettered plans with the level of coverage you need, then you can ask your insurance agent for quotes. To properly compare costs, you should also ask for the rate increase history on each insurance company presented. Otherwise, you’ll have no way of knowing how frequently a carrier raises their rates.
If you don’t have an insurance agent who services Medicare supplements, call 1-855-266-4865 to talk with a HealthPlanOne agent. Ask for your free rate plan analysis on all major carriers that service your area.
Related Article: How to Choose a Medicare Supplement Plan
What is Medigap Insurance?
Medigap is the term the government gave to Medicare supplement insurance. Supplemental Medicare insurance, called Medigap plans, are a type of indemnity insurance policy that helps you pay your share of Medicare costs.
Original Medicare, which consists of hospital coverage (Part A) and medical coverage (Part B), only pays about 80% of your major medical costs. Medicare beneficiaries are responsible for the other 20%. These costs are paid through deductibles, copayments, and coinsurance when you use healthcare services. Medigap plans help cover those costs.
Are Medicare Supplement Plans Worth It?
The importance of additional coverage cannot be overstated. Unlike Obamacare plans, Medicare Advantage plans, and most employer-based group health coverage, with Original Medicare, there’s no annual out-of-pocket limit. That means, if you come down with a critical illness, or have a bad accident, and the hospital, imaging, medication, and doctor bills suddenly run up to $300,000 in order to save your life. you’ll be on the hook for $60,000.
Also See: Do I Really Need Supplemental Insurance with Medicare?
Most of our budgets simply can’t handle that kind of unexpected expense. Think about it, what would you do without additional coverage?
Fortunately, you can choose a Medigap plan that will cover some of your deductibles, copayments, and coinsurance. And, it isn’t necessary to buy the most extensive plan in order to get good coverage. Plus, you can rest assured knowing that the top insurance companies in the country, with brand names you know and trust, stand behind these policies.
Which Medicare Supplement Plan is the Best?
The best Medigap plan is the one that covers both your health and financial situation the best. If you get too little coverage and have one or more chronic health conditions you could end up spending more out-of-pocket than you should. If you get too much coverage and you’re super healthy you will spend more on monthly premiums than you should.
As you can see, there’s a delicate balance to choosing “the best” Medigap plan. We suggest that you start by calling 1-855-266-4865 and speak to a HealthPlanOne agent. Ask for a free rate plan analysis that covers all insurance carriers in your area. Then ask the agent to explain the benefits of the plans that interest you most.
Is Medicare Plan G Better Than Plan F?
You may have listened to friends brag about their Medicare Plan F coverage or how much they saved with a Plan G policy. It’s true, Plan F and Plan G are the two most popular Medigap plans available. As you might have noticed in the Medigap comparison chart above, Plan F is the only Medigap plan that covers all of the gaps. Plan G isn’t far behind, because the only item it does not cover is your Part B annual deductible.
These plans are popular because they offer peace-of-mind. For a single payment each month, when you have one of these plans you truly have the most complete coverage available. The big difference between Plan F and Plan G comes down to the annual premium and who pays the Part B deductible, you or the insurance company. People who what first-dollar coverage and convenience go for Plan F. People who want to save a few bucks go for Plan G.
If Plan G interests you, you might also want to ask your agent about Medicare Plan N. This plan offers lower premiums in trade for a bit of cost-sharing. Unlike Plan G, Plan N doesn’t cover your excess charges, so this plan is most suitable for people without any chronic health conditions. If you’re healthy and want to save money, be sure to ask your agent about Plan N.
For More Information See: Is Medicare Plan G Better than Medicare Plan F?
What is the Average Cost of Supplemental Insurance for Medicare?
Unfortunately, it isn’t possible to give an average cost. In some areas, you can buy a Plan F policy for around $150. In high cost-of-living areas, these plans can cost quite a bit more. In addition to where you live, insurance companies factor in your age, gender, and use of tobacco products. If you waited more than six months past your 65th birthday, insurance companies will also ask about your health and send your application through medical underwiring. There is a significant benefit to getting your Medigap plan during your Medicare Supplement Enrollment Period.
How to Compare Medigap Plans to Find the Best
Learning how to compare Medigap plans is straightforward. Medicare publishes a booklet each year that includes a Medigap plan comparison chart, which shows you Medicare supplement plans in a side-by-side format. The chart exactly which benefits (coverage) each plan offers. Choosing the best plan is a matter of making sure the most important costs (to you) are covered.
Below is a brief description of what each plan covers:
Medicare Plan A
Medicare Plan A is the most basic of all the Medigap plans. Although it does not pay your Medicare Part A inpatient deductible, it does cover the daily coinsurance that starts on your 61st day in the hospital. This is the #1 cost that sinks people when they come down with a critical illness. It also covers your first 3 pints of blood, which Medicare does not pay, and it covers your Part B copayments when you see your doctor. All Medicare supplement insurance companies offer Plan A, but not all states require companies to sell it to people under age 65 on Medicare disability.
Medicare Plan B
It’s easy to confuse Medicare Plan B with Medicare Part B, which is your medical coverage. They are not the same thing.
Medicare Plan B is a Medigap plan that starts where Medicare Plan A leaves off. It covers the Medicare Part A hospital deductible, and it’s only slightly more expensive than Plan A. It’s decent coverage if you don’t need foreign travel coverage and you don’t mind paying your Part B deductible and excess charges out-of-pocket.
Medicare Plan C
Medicare Plan C is just one benefit away from full-coverage. In addition to everything that Plan B covers, Medigap Plan C offers foreign travel emergency coverage and it pays your annual Part B deductible. The only cost it does not cover is your Medicare excess charges. These are the additional charges your doctor can add to your bill (up to 15%) if they do not accept Medicare’s standard rates.
Note: This plan is not available to anyone whose 65th birthday is after 31 December 2019 due to new Congressional rules regulating coverage of the Medicare Part B annual deductible.
Medicare Plan D
Medicare Plan D is one of the least popular Medigap plans. However, if you like Plan C, but you can’t get it because you are just now turning age 65, Plan D covers everything that Plan C covers except the Part B deductible. That said, this Medigap plan is often priced quite a bit higher than Plan N, making Medicare Plan N the more popular choice.
Medicare Plan F
Medicare Plan F is the most popular selling Medigap plan. If you’re looking for peace-of-mind coverage, Plan F is it. That’s because it covers all of the gaps in coverage that you’d normally pay out-of-pocket. As a result, Plan F leaves you with no costs on all Medicare-covered services.
Note: This plan is not available to anyone whose 65th birthday is after 31 December 2019 due to new Congressional rules regulating coverage of the Medicare Part B annual deductible.
Medicare Plan G
If you’re turning age 65 this year, Medicare Plan G is the most complete coverage you can buy. It covers everything that Plan F does except for your annual Part B deductible. However, the monthly premiums for Plan G are often such that they are a better value than Plan F. This is particularly true for healthy people who typically only see their doctor for an annual checkup. These people often save $300 to $400 per year with a Plan G.
Medicare Plans K, L, and M
Plans K, L, and M are cost-sharing plans. Plan K, for example, pays 50% of most items, whereas Plan K covers 75%. Plan M covers 100% of the most common costs, except the Part A deductible, which is only covered at 50%. None of these plans are very popular because your out-of-pocket costs are unpredictable, just like they are with a Medicare Advantage plan. If you are considering a Medicare Advantage plan, but you don’t want to give up your choice of doctors, read Medigap Plan K and N vs. Medicare Advantage Plans.
Medicare Plan N
Medicare Plan N was created in 2010 in response to the need for lower-cost options with less risk. This innovative plan offers lower premiums in exchange for a little cost-sharing. If you have a Plan N policy, you pay a small copay to see your doctor and if you need emergency room services. Plus, this plan does not cover Medicare excess charges.
Medigap Plan N is highly attractive to active, healthy seniors who are not afflicted with any chronic health conditions. That’s because these people rarely use healthcare service, other than their annual checkups, so their copayments and excess charges are minimal. That said, some people see the low premiums and buy this plan even though it’s not a good fit. For these people, the small copayments and excess charges can actually add up to higher costs.
High Deductible Medicare Plan F and Plan G
Both Plan F and Plan G are available in a high deductible version. This option is exactly what it sounds like. You pay all costs out-of-pocket until you reach the annual deductible ($2,340 in 2020), then the plan kicks in and starts paying.
Are There Different Types of Medicare Supplement Plans?
Medicare supplement insurance companies use one of three methods to determine premiums and premium increases. Some plans are issue-age rated while others are attained-age rated. The third type is community-rated plans. In some states, issue-age rated plans cost less over time. In other states, attained-age rated plans work out better. The best way to know for sure which is best for you is to ask your insurance agent for the rate increase history on all plans they quote.
What is the Average Cost of Supplemental Insurance for Medicare?
Unfortunately, it isn’t possible to give an average cost. In some areas, you can buy a Plan F policy for around $150. In high cost-of-living areas, these plans can cost quite a bit more. In addition to where you live, insurance companies factor in your age, gender, and use of tobacco products. If you waited more than six months past your 65th birthday, insurance companies will also ask about your health and send your application through medical underwiring. There is a significant benefit to getting your Medigap plan during your Medicare Supplement Enrollment Period.
Got questions? Call 1-855-266-4865 and speak to a HealthPlanOne agent. Ask for your free rate plan analysis on all major carriers that service your area. And be sure to ask for the rate increase history on all plans you’re considering. You have a right to know.
