Medigap Insurance Plans & Costs12 minute read

12 minute read

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Updated for December, 2018

Once you attain the age of 65, there are a couple of important decisions that you have to make. One of these decisions is concerning your healthcare options. You can opt for either one of these two plans: Medicare Advantage Plan or the Medigap Policy. But what is the difference between Medicare, Medicare Advantage, and Medigap?

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Once you attain the age of 65, there are a couple of important decisions that you have to make. One of these decisions is concerning your healthcare options.

Medicare, on its own, consists of four sections: Part A, the hospital insurance; Part B, the health insurance; and Part C, which is known as the Medicare Advantage Plan. The Medicare Advantage Plan offers an alternative to the basic Medicare plan by offering additional benefits such as prescription drug coverage. Lastly, Part D offers prescription drug coverage for individuals, who have not purchased the Medicare Advantage to begin with.

You’re probably wondering, “What about Medigap?” Well, this article will explain Medigap coverage while highlighting the various plans found under this policy and their respective costs.

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Medigap Plan A:

When you compare all of the Medigap policies, Plan A is the most rudimentary coverage. It is mandatory for all private Medigap insurers to provide Medigap Part A. But, there’s a catch. You need to have Medicare Part A and Part B to become eligible for Medigap Plan A.

Since it’s only a basic insurance cover, it may not cover all your healthcare expenses. However, if you’re on a limited budget or are receiving Medicare insurance due to a disability, you will find this an excellent plan.

Altogether, the Medigap Plan A provides all the aforementioned benefits with the exception of coinsurance for skilled nursing, Part A and B deductibles, the excess charges of Part B, emergency during an overseas trip, at-home recovery, preventive, dental, and vision care. It means that for any of these expenses, you’d have to pay from your own pocket.

Medigap Plan B:

When you enroll for Medigap Plan B, all your medical services and supplies will be taken care of. This plan is quite similar to a typical health insurance policy since it covers common health care expenses such as laboratory tests, surgery, and consultations.

Furthermore, it caters for all your medical supplies such as walkers, crutches, wheelchairs and other accessories. As is the case with Medigap Plan A, you only receive the Plan B benefits if you already have Medicare coverage.

For this plan, you’re required to pay a monthly premium, which differs from one individual to another. This premium is dependent on your income level. For instance, persons earning $85,000 or less will need to pay a premium of $104.9 every month. If your salary is between $85,000 and $107,000, your monthly premium is $146.90 and if your income ranges between $107,000 and $160,000, your monthly premium is $209.80. People earning more than $214,000 have to pay a monthly premium of $335.70. However, these figures are subject to change depending on the private insurer that you choose.

Medigap Plan C:

When it comes to health insurance policies, Medigap is one of these companies that put the interests of senior citizens at heart. Medigap part C, sometimes referred to as the Medicare Advantage, helps the elderly achieve more Medicare benefits.

Medigap Plan C provides the basic coverage, the coinsurance for excess hospital expenses from Part A, preventive care coinsurance from Medicare Part B, the coinsurance for Part B for extra services other than preventive care, professional nursing care coinsurance and emergency services that may arise from foreign travels. If Medigap Plan C does not meet all your requirements, you should enroll for their Plan D.

Medigap Plan D:

This plan covers all the nine aforementioned benefits except for two of them namely, the deductibles and additional charges for Medicare Part B. It’s crucial to point out that all Medigap Plan D policies are identical regardless of the insurance company that you go to.

One question that many seniors ask is: “Am I eligible for Medigap Plan D?” Essentially, it can be purchased by any Medicare enrollee as long as they enroll within a six-month period after attaining 65 years. This is the same time during which one becomes viable to acquire Medicare Part B. In this duration (called the Open Enrollment Period), no insurance firm has a right of denying you this policy or charging you extra because of a present medical condition.

Medigap Plan E:

Beginning June 1, 2010 Plan E will no longer be offered as a Medicare Supplement plan. Current policyholders should note that current Plan E enrollees will not lose their current Plan E coverage.

Medigap Plan F:

Medicare Supplemental Insurance Plan F is the most preferred by individuals across all age-groups. One thing that attributes to its popularity is the fact that it covers the excess charges from Medicare Part A and B. Ideally, this means that if you go beyond the allotted limit of your medical services, this Medicare Plan will cover you.

There’s only one other plan that provides this benefit. With Medigap Plan F, you can go for medical checkups without worrying sick about being forced to pay extra for services not covered by Medicare. Other benefits included in this insurance policy include hospital stays, Medicare coinsurance, blood transfusions, hospice services, nursing care, excess charges, travel insurance, and Medicare Part A and B.

Since it offers the most benefits, Medigap Plan F is also the priciest. Their monthly premium can cost you a fortune. The cost for this policy varies significantly depending on your age, medical history, current health status and location. Each individual is assessed separately to determine how much they should pay to receive Plan F benefits.

Medigap Plan G:

Medigap Plan G is no far cry from the Plan F. In fact, the only difference is that with Plan G, you have to pay the deductible for Medicare Part B, which is catered for in Plan F. As a result, the premiums for Medigap Plan G are more affordable than for Plan F.

Similarly to Medigap Plan F, this policy covers the excess charges of Medicare Part B, but only up to 80%. Also, you will miss out on a couple of benefits when you enroll for plan G including preventive care and the copayments for hospice care.

Medigap Plan H:

Beginning June 1, 2010 Plan H will no longer be offered as a Medicare Supplement plan. Current policyholders should note that current Plan H enrollees may be dropped from their Plan H coverage.

Medigap Plan I:

Beginning June 1, 2010 Plan I will no longer be offered as a Medicare Supplement plan. Current policyholders should note that current Plan I enrollees will not lose their current Plan I coverage.

Medigap Plan J:

Medicare supplement Plan J retired in 2010. Plan F is the closest alternative to Plan J if you are new to Medicare supplements or you are looking to switch.

Medigap Plan K:

With Medigap Plan K, you will receive partial coverage for a designated group of services, which are not covered by the Original Medicare Plan. The only benefit that is fully covered under this plan is the coinsurance for Medicare Part A.

Medigap Plan K is known for offering low-priced premiums but higher deductibles. In summary, it offers 50% coverage for these benefits:

Additional health care services
The coinsurance and copayments for Medicare Part B
Three pints of drawn blood
The hospice copayments and the deductible for Medicare Part A

Medigap Plan L:

This plan also offers partial coverage for a majority of the benefits. What makes Medigap Plan L attractive are the low-priced monthly premiums. While Plan K covers 50%, Plan L takes care of 75% of these expenses. The benefits covered partially by this policy includes all the deductibles not provided by Medicare Part A, the Coinsurance for any time spent in a professional nursing care center, and three pints of blood, as well as the coinsurance and copayments that don’t fall under Medicare Part B.

Medigap Plan M:

This plan aims at increasing the benefits that consumers receive from Medigap. For instance, this policy allows you to choose your preferred healthcare facility or doctor to handle your medical services. Contrary to the Medicare Advantage Plan, it’s not a must that you choose a doctor from a network. The benefits offered under Medigap Plan M include:

  • Every service covered under Plan A
  • Half of the hospital deductible incurred under Medicare Part A
  • Full coverage of the copayments for checkups and emergency room visits
  • Full coverage of the coinsurance for nursing facilities approved by Medicare
  • Emergency costs during foreign travels

Medigap Plan N:

This can be described as the cheaper version of Medigap Plan F. You’ll receive a vast range of benefits such as:

  • Full coverage on the coinsurance cost of Medicare Part A
  • Full coverage on the deductible for Part A
  • Full coverage of Hospice Coinsurance
  • Three pints of blood
  • Emergency Travel care
  • Full coverage on the coinsurance for Part B

For more comprehensive information on the benefits offered under each plan, you can visit their website on https://www.medicare.gov/supplement-other-insurance/compare-medigap/compare-medigap.html

Shot of a senior couple and a nurse

Medigap offers a range of plans, which are labeled A to N. Each Plan offers full or partial coverage of certain benefits. When choosing a specific insurance plan, consider the reputation of the insurance firm, your age, and type of medical services that you need.