Paul Sanchez
Medicare Supplement Insurance plans, also known as Medigap, are available from private insurance companies to help cover out-of-pocket costs that Original Medicare (including Part A and Part B) does not pay. Medigap policies are standardized, offering the same basic benefits regardless of insurer, with price being the main differentiator. There are 10 types of Medigap plans offered in most states, identified by the letters A-D, F, G, and K-N, with some states offering an additional Medicare SELECT policy. These supplement insurance plans help cover costs like copays and coinsurance, and some plans may even cover your Medicare Part A hospital deductible.
| Characteristics | Values |
|---|---|
| Name | Medicare Supplement Insurance (Medigap) |
| Provider | Private insurance companies |
| Eligibility | Must have Original Medicare (Part A and Part B) |
| Purpose | Help pay out-of-pocket costs not covered by Original Medicare |
| Availability | 10 types of plans (A-D, F, G, K-N) offered in most states |
| Enrollment Period | One-time "Medigap Open Enrollment" period of 6 months starting when the individual is 65 or older and has Medicare Part B |
| Cost | Varies by plan; higher monthly premium plans cover more out-of-pocket costs |
| Additional Notes | Not connected with or endorsed by the U.S. Government or the federal Medicare program |
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What You'll Learn
Medicare Supplement Insurance (Medigap) plans
Medicare Supplement Insurance plans, also known as Medigap plans, are additional insurance policies that can be purchased from private insurance companies. These plans are designed to help cover the out-of-pocket costs that Original Medicare, including Part A (Hospital Insurance) and Part B (Medical Insurance), does not pay. For example, while Medicare Part B typically covers around 80% of Part B expenses, you are responsible for paying the remaining 20%. A Medigap plan could help pay this remaining amount.
It is important to note that Medigap policies are generally only available to individuals who already have Original Medicare. These supplement insurance plans come with a monthly premium, which is the amount you pay out-of-pocket for covered services before Medicare and your Medigap plan start to pay. The premium varies depending on the chosen plan, with some plans covering most out-of-pocket costs but having a higher monthly premium, while others have a lower premium but cover fewer costs.
Most Medigap plans provide coverage for the Medicare Part A hospital deductible. However, you are usually responsible for the Medicare Part B deductible. Additionally, Medigap plans may have cost-sharing features such as copays and coinsurance. A copay is a set amount paid for each service, such as a $20 copay for an in-office doctor visit. On the other hand, coinsurance requires you to pay a percentage of the Medicare-approved amount for each service.
Medigap plans also have an out-of-pocket maximum, which is the maximum amount of out-of-pocket costs you will pay per calendar year. This is beneficial because Original Medicare Parts A and B do not have an out-of-pocket maximum, so your medical expenses could add up to a significant amount without a Medigap plan. Overall, Medigap plans provide valuable financial protection by helping to cover some of these out-of-pocket costs.
It is worth noting that Medigap plans have eligibility requirements, exclusions, and limitations, and they may not be available in all geographical areas. Additionally, certain offerings may be provided by third parties not affiliated with the insurance company, and they are not a substitute for emergency care. In an emergency, individuals should call 911 or seek care at the nearest emergency room.
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Monthly premiums
Medicare Supplement Insurance plans, also known as Medigap, may help pay some of the healthcare costs that Medicare Parts A and B do not cover, such as coinsurance, copayments, or deductibles. Each insurance company decides how it will set the price, or premium, for its Medigap policies, which can affect how much you pay now and in the future. The premium amount is the only difference between policies with the same plan letter sold by different companies. There can be significant variation in the premiums that different insurance companies charge for the same coverage, so it is important to compare Medigap plans with the same letter when shopping for a plan. For example, compare Plan G from one company with Plan G from another. When comparing Medigap plans, you will see their estimated costs, but it is recommended to contact the insurance company for a more accurate price.
Medigap premiums vary depending on the insurance company, the specific plan chosen, and the state in which you live. For example, individuals in Massachusetts, Minnesota, or Wisconsin may find that their Medicare Supplement policy is called something different than "Medicare Supplement Plans A through N". Additionally, those who enroll online may be eligible for a 6% discount on their monthly premium, although this discount is not available in all states.
Plans A through G generally provide benefits at higher premiums with limited out-of-pocket costs compared to Plans K through N. Plans K through N are cost-sharing plans that offer similar benefits but at lower premiums, with higher out-of-pocket costs. It is worth noting that Plans C and F, as well as the High Deductible Plan F, are not available to individuals who became eligible for Medicare on or after January 1, 2020.
When you buy a Medigap policy, you will need to pay the private insurance company a monthly premium. You will also be responsible for continuing to pay your monthly Medicare Part B premium, as Medicare does not pay the premiums for your Medigap policy. If you have a limited income and resources, you may be able to get help from your state to pay your premiums and other costs associated with Medicare.
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Out-of-pocket costs
Medicare Part A (Hospital Insurance) typically doesn't require a premium if you've worked for 10 or more years and paid Social Security taxes. However, if you don't qualify for premium-free Part A, you may pay up to $518 monthly in premiums. Additionally, for a hospital stay in 2025, there's a $1,676 deductible per benefit period.
Medicare Part B (Medical Insurance) comes with a standard monthly premium of $185 in 2025. The Part B deductible is $257 per year, and the Part B coinsurance is 20% of the cost for each Medicare-approved service or item. This coinsurance can contribute significantly to your total out-of-pocket expenses.
Medicare Advantage (Part C) plans offer comprehensive coverage, including dental, hearing, and vision care. In 2025, the average monthly premium for Part C is expected to range from $0 to over $240, with an estimated average of $17. Most Part C plans have cost-sharing, often in the form of a fixed co-payment for doctor visits, which is typically more predictable than the 20% coinsurance of Part B.
Medicare Part D provides prescription drug coverage, with annual premiums varying across plans. The average monthly premium for standard coverage in 2025 is estimated at $46.50.
Medicare Supplement Insurance Plans, also known as Medigap plans, are offered by private insurance companies to help cover out-of-pocket costs that Original Medicare doesn't pay. These plans have varying benefits and costs, with some covering most out-of-pocket expenses but carrying higher monthly premiums, while others have lower premiums and cover fewer out-of-pocket costs.
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Medicare SELECT
Medicare Supplement insurance plans, also known as Medigap plans, are offered by private insurance companies to help cover some of the out-of-pocket costs that Original Medicare doesn't pay for. Medicare SELECT is a type of Medicare Supplement insurance plan. It is a version of the ten standardized Medicare Supplement (Medigap) plans, offering the same coverage benefits but with a restricted network of healthcare providers.
However, one of the significant limitations of Medicare SELECT is the restricted network of healthcare providers. This means that you can only seek non-emergency treatment from specific providers in your area. If you require treatment outside of your carrier's network, Medicare will still cover its portion, but you will be responsible for any out-of-pocket costs. Additionally, with a Medicare SELECT plan, you may need a referral from your primary care physician before seeing a specialist, which is not required with Original Medicare or standard Medicare Supplement plans.
To be eligible for Medicare SELECT, you must meet the general eligibility criteria for Original Medicare, which includes being eligible for Medicare Part A and living within the service area of the Medicare SELECT plan. Most individuals become eligible for Medicare when they turn 65, but eligibility can also be attained through other circumstances, such as qualifying disabilities or specific medical conditions.
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Medicare Part A and Part B
Medicare is federal health insurance for anyone aged 65 or older, as well as some people under 65 with certain disabilities or conditions. Original Medicare includes Part A and Part B.
Medicare Part A
Medicare Part A is free for most people and covers inpatient care in hospitals, skilled nursing facility care, hospice care, and home health care. To be eligible for premium-free Part A, an individual must be entitled to receive Medicare based on their own earnings or those of a spouse, parent, or child. People who receive monthly Social Security or Railroad Retirement Board (RRB) cash benefits will get Part A automatically at age 65.
Medicare Part B
Most people pay a monthly premium for Part B, the exact amount of which depends on the individual's income level. Medicare Part B generally covers about 80% of Part B expenses, with the remaining 20% being the responsibility of the individual.
Medicare Supplement Insurance Plans
Medicare Supplement insurance plans, also known as Medigap plans, are offered by private insurance companies to help pay some of the out-of-pocket costs that Original Medicare does not cover. Most Medicare Supplement plans provide coverage for the Medicare Part A hospital deductible, while the individual is usually responsible for the Medicare Part B deductible. These plans have different monthly premiums, and the benefits and costs vary depending on the chosen plan.
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Frequently asked questions
Medicare Supplement Insurance, also known as Medigap, is extra insurance that helps cover out-of-pocket costs not paid for by Original Medicare (Part A and Part B).
There are 10 types of Medigap plans offered in most states, named by letters: A-D, F, G, and K-N. The benefits offered by plans with the same letter are the same across different insurance companies, with price being the only differentiating factor.
Medigap insurance is offered by private insurance companies. You can enroll during the "Medigap Open Enrollment" period, which is a one-time, 6-month period starting from when you turn 65 and have Medicare Part B. During this period, insurance companies cannot deny coverage due to pre-existing health conditions.
Medicare is health insurance offered by private companies that contract with Medicare, providing Part A (Hospital Insurance) and Part B (Medical Insurance) benefits. Medigap is supplemental insurance that helps cover out-of-pocket costs that Original Medicare does not pay for.
The costs of Medigap plans vary. Some plans have higher monthly premiums but cover most out-of-pocket expenses, while others have lower premiums and cover fewer out-of-pocket costs.
