So what Medicare Supplement plan do I
choose?
Medicare Supplement Policies
Medicare Supplement
Insurance plans, also known as Medigap, are designed to help cover
the out-of-pocket costs that Original Medicare (Parts A and B)
doesn't cover, such as copayments, coinsurance, and deductibles.
These plans are standardized by the federal government, meaning that
the benefits of each plan letter are the same across different
insurance companies, although the premiums can vary. It's important
to note that Medigap plans generally don't include prescription drug
coverage, so a separate Medicare Part D plan is needed for that.
Also, those newly eligible for Medicare on or after January 1, 2020,
cannot purchase Plan C or Plan F.
Ranking Medicare
Supplement policies from best to most basic coverage can be complex,
as the "best" plan depends on an individual's healthcare needs, risk
tolerance, and budget. However, we can generally categorize them
based on the comprehensiveness of their coverage.
Here is a general
overview of the 10 standardized Medicare Supplement policies,
keeping in mind that Plans C and F are only available to those who
were eligible for Medicare before January 1, 2020:
1.
Plan F (For
those eligible for Medicare before 2020):
●
Coverage: This plan typically offers the most
comprehensive coverage, often covering the Part A deductible, Part B
deductible, Part B coinsurance, Part A coinsurance, skilled nursing
facility care coinsurance, hospice care coinsurance or copayment,
and blood (first 3 pints). Some Plan F policies also offer coverage
for Part B excess charges.
●
Why it's often considered top: It leaves
beneficiaries with the least out-of-pocket expenses for
Medicare-covered services.
2.
Plan G:
●
Coverage: Plan G covers almost everything that
Plan F covers, except it does not pay the annual Medicare Part B
deductible.
●
Why it's highly rated: For those newly eligible
for Medicare, Plan G offers the most comprehensive coverage
available and often has lower premiums than Plan F, potentially
leading to overall savings.
3.
Plan C (For those eligible for Medicare before 2020):
●
Coverage: Plan C covers the Part A deductible,
Part B coinsurance, skilled nursing facility care coinsurance,
hospice care coinsurance or copayment, blood (first 3 pints), and in
some cases, foreign travel emergency care.
●
Key difference from F: Plan C does not cover
Part B excess charges.
4.
Plan N:
●
Coverage: Plan N covers the Part A deductible,
Part B coinsurance (except for copays of up to $20 for some office
visits and up to $50 for emergency room visits that don't result in
inpatient admission), skilled nursing facility care coinsurance,
hospice care coinsurance or copayment, and blood (first 3 pints).
Some policies may also cover foreign travel emergency care.
●
Why it's popular: Plan N often has lower
monthly premiums compared to Plans F and G, making it an attractive
option for those comfortable with small copays.
5.
Plan D:
●
Coverage: Plan D covers the Part A deductible,
Part B coinsurance, skilled nursing facility care coinsurance,
hospice care coinsurance or copayment, and blood (first 3 pints).
Some policies may also cover foreign travel emergency care.
●
Key difference from G: Plan D does not cover
Part B excess charges.
6.
Plan M:
●
Coverage: Plan M covers 50% of the Part A
deductible, Part B coinsurance, skilled nursing facility care
coinsurance, hospice care coinsurance or copayment, and blood (first
3 pints). It may also cover foreign travel emergency care.
●
Key feature: Plan M includes an out-of-pocket
limit.
7.
Plan K:
●
Coverage: Plan K covers 50% of the Part A
deductible, 50% of Part B coinsurance, 50% of skilled nursing
facility care coinsurance, 50% of hospice care coinsurance or
copayment, and 100% of blood (first 3 pints) after you meet the Part
B deductible.
●
Key feature: Plan K has an annual out-of-pocket
limit.
8.
Plan L:
●
Coverage: Plan L covers 75% of the Part A
deductible, 75% of Part B coinsurance, 75% of skilled nursing
facility care coinsurance, 75% of hospice care coinsurance or
copayment, and 100% of blood (first 3 pints) after you meet the Part
B deductible.
●
Key feature: Plan L has a higher annual
out-of-pocket limit than Plan K.
9.
Plan B:
●
Coverage: Plan B covers the Part A coinsurance
and hospital costs up to an additional 365 days after Medicare
benefits are used, Part B coinsurance, blood (first 3 pints), and
Part A hospice care coinsurance or copayment. It also covers the
Part A deductible.
●
What it lacks: It does not cover the Part B
deductible, skilled nursing facility care coinsurance, or Part B
excess charges.
10.
Plan A:
●
Coverage: Plan A offers the most basic
coverage, including Part A coinsurance and hospital costs up to an
additional 365 days after Medicare benefits are used, Part B
coinsurance, blood (first 3 pints), and Part A hospice care
coinsurance or copayment.
●
What it lacks: It does not cover the Part A
deductible, skilled nursing facility care coinsurance, Part B
deductible, or Part B excess charges.
Ranking from
Most to Least Comprehensive Coverage (General Guide):
1.
Plan F
(For those eligible for Medicare before 2020)
2.
Plan G
3.
Plan C
(For those eligible for Medicare before 2020)
4.
Plan N
5.
Plan D
6.
Plan M
7.
Plan L
8.
Plan K
9.
Plan B
10.
Plan A
Important
Considerations:
●
Availability: Plans C and F are not available
to those who became eligible for Medicare on or after January 1,
2020.
●
Premiums: Generally, plans with more
comprehensive coverage (like F and G) tend to have higher monthly
premiums. Plans with less coverage (like A and B) usually have lower
premiums but result in higher out-of-pocket costs when you need
healthcare services. Plans K and L have lower premiums but require
you to pay a percentage of the costs until you reach your
out-of-pocket limit.
●
High-Deductible Options: Plans F and G may also
be available as high-deductible versions in some states, offering
lower premiums but requiring you to meet a significant deductible
($2,870 in 2025) before the plan starts paying.
●
Individual Needs: The "best" plan truly depends
on your individual health needs, how often you anticipate needing
medical care, and your financial situation. If you prefer
predictable costs and want more comprehensive coverage, a plan like
G might be suitable. If you are relatively healthy and want a lower
premium, Plan N or even a cost-sharing plan like K or L might be
considered.
It's recommended to
carefully compare the benefits and premiums of different Medigap
plans available in your area to make an informed decision that
aligns with your specific circumstances. Consulting with a Medicare
advisor can also be beneficial.
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