Alyssa Lane
Medicare Supplement Insurance, also known as Medigap, is an extra insurance policy that can be purchased to help cover out-of-pocket costs in Original Medicare. The best time to buy a Medigap policy is during the Medigap Open Enrollment Period, which is a one-time, 6-month period that starts when an individual is enrolled in Medicare Part B and is 65 or older. During this time, individuals can enroll in any Medigap policy, and insurance companies cannot deny coverage due to pre-existing health conditions. After this period, Medigap policies may be more expensive or difficult to obtain. To purchase a Medigap policy, individuals should compare the benefits of each lettered plan, considering their current and future healthcare needs, and select a plan that meets their specific requirements.
| Characteristics | Values |
|---|---|
| Best time to buy a policy | During the Medigap Open Enrollment Period |
| Medigap Open Enrollment Period | A 6-month period that starts the first month you have Medicare Part B and you're 65 or older |
| Availability of Medigap policies | Sold by any insurance company that's licensed in your state to sell one |
| Price | The only difference between policies with the same letter sold by different companies |
| Comparison | Compare the benefits of each lettered plan |
| State-specific policies | In some states, you may be able to buy another type of Medigap policy called Medicare SELECT |
| Pre-existing health problems | The insurance company can't deny you coverage due to pre-existing health problems |
| Switching policies | You might not be able to switch policies later |
| Guaranteed issue rights | Situations where an insurance company can't deny you a Medigap policy |
| Average premium | $155 a month in 2023 |
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What You'll Learn
During your Medigap Open Enrollment Period
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This is a one-time, six-month enrollment period that starts the first month you have Medicare Part B and are 65 or older. During this time, you can enrol in any Medigap policy, and the insurance company cannot deny you coverage due to pre-existing health conditions. You will also generally get better prices and more choices among policies.
After this period, your options to buy a Medigap policy may be limited, and the policy may cost more. You may also be turned down due to your health if you decide to switch Medigap plans in the future. Therefore, it is recommended that you buy a Medigap policy when you first enroll in Medicare and then stick with it.
In some states, you may be able to buy another type of Medigap policy called Medicare SELECT. If you buy a Medicare SELECT policy, you have the right to change your mind within 12 months and switch to a standard Medigap policy. It is important to note that Medigap policies are standardized differently in Massachusetts, Minnesota, and Wisconsin.
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If you have Original Medicare
You can only buy Medigap if you have Original Medicare, which means enrolling in Medicare Part A (Hospital Insurance) and Part B (Medical Insurance). It is recommended to purchase a Medigap policy when you first enroll in Medicare as you get a one-time, six-month Medigap Open Enrollment Period that starts the first month you have Medicare Part B and are 65 or older. During this period, you can enroll in any Medigap policy, and insurance companies cannot deny you coverage due to pre-existing health conditions. You may also get better prices and more choices during this time.
After your Medigap Open Enrollment Period ends, you may face limitations in buying a Medigap policy, and it may cost more. Additionally, if you decide to switch Medigap plans later, you could be turned down due to your health. Therefore, it is advisable to choose a Medigap plan that meets your current and future healthcare needs and stick with it.
When selecting a Medigap policy, it is important to compare the benefits of each lettered plan and decide which benefits you need. Remember that not all plans are offered in every state, and some states have different standardized policies. You can buy a Medigap policy from any licensed insurance company in your state, but it is essential to compare prices as costs can vary widely between companies. Contact your State Insurance Department to check for any complaints against the insurance companies and to understand your rights under state law. Additionally, your local State Health Insurance Assistance Program (SHIP) can provide free help in choosing an insurance company and may have a Medigap rate comparison shopping guide for your state.
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When you're 65 or older
If you're 65 or older, you can buy Medicare Supplement Insurance, also known as a Medigap policy, to help pay your share of out-of-pocket costs in Original Medicare. This insurance is extra coverage that you can purchase from a private insurance company. It is important to note that you can only buy Medigap if you have Original Medicare, which means signing up for Medicare Part A (Hospital Insurance) and Part B (Medical Insurance) before purchasing a Medigap policy.
When you turn 65, you are eligible for a six-month Medigap Open Enrollment Period. This period begins on the first day of the month in which you turn 65 and have enrolled in Medicare Part B. During this time, you can enrol in any Medigap policy, and insurance companies cannot deny you coverage due to pre-existing health conditions. You may also be able to avoid or shorten waiting periods for pre-existing conditions if you buy a Medigap policy during this period.
It is recommended to buy a Medigap policy when you first enrol in Medicare and then stick with it. This is because, during the Medigap Open Enrollment Period, you have guaranteed access to Medigap plans, and insurance companies cannot reject you based on your health. However, if you decide to switch Medigap plans later, you could be turned down due to your health status.
The price is the main difference between Medigap policies with the same letter sold by different companies. Costs can vary significantly, so it is essential to contact multiple companies that sell Medigap policies in your state to get estimates. You can also contact your local State Health Insurance Assistance Program (SHIP) to receive free help in choosing an insurance company in your area. They may also have a Medigap rate comparison shopping guide to assist you in finding the best rates.
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If you live in Massachusetts, Minnesota, or Wisconsin
In Massachusetts, Medigap plans are different from those in most other states. While most states offer ten different Medigap plan designs, Massachusetts has just three: the Medicare Core Plan and Medicare Supplements 1 and 1A. Supplement 1A, added in 2020, does not cover the Medicare Part B deductible, which is $257 in 2025. If you were eligible for Medicare before 2020, you can choose from all three supplement options, but if you became eligible in 2020 or later, you cannot enrol in a plan that covers the Part B deductible. Massachusetts has some of the strongest consumer protections for Medigap plans. It is one of eight states that require insurers to use community ratings, meaning premiums cannot vary based on age, and it prohibits pre-existing condition waiting periods.
In Minnesota, Medicare Supplement plans are available from insurers, who are required to offer certain plans. These plans may also be available as SELECT plans, which may require you to use specific healthcare providers to receive full benefits. Minnesota also offers Medicare Cost plans, depending on where you live in the state. You can get free help with your Medicare choices from the Senior LinkAge Line, which is the state's State Health Insurance Assistance Program (SHIP).
In Wisconsin, Medigap can help cover expenses that Medicare doesn't pay for. Wisconsin law mandates that all Medigap plans offer certain basic benefits, and many plans offer additional benefits as well. The premium you pay for Medigap can vary significantly between plans, so it is important to shop around and understand what each plan covers before choosing one. You can find resources and support for choosing a plan through the Medigap Helpline.
In general, the best time to buy a Medigap policy is during your Medigap Open Enrollment Period. You can buy a policy from any insurance company licensed in your state, but not all plans are offered in every state, and not all insurance companies sell every plan. You can shop by price, as the benefits of lettered plans are the same no matter which company sells them, and the only difference is the price. It is important to watch out for illegal practices by insurance companies when shopping for Medigap.
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If you have employer coverage
Medigap is extra insurance that can be purchased from a private health insurance company to help pay your share of out-of-pocket costs in Original Medicare. Generally, you must have Original Medicare, which includes Part A (Hospital Insurance) and Part B (Medical Insurance), to be eligible for a Medigap policy. If you are still working and have health insurance through your employer, your employer's coverage may already provide similar benefits to Medigap.
If you decide to stay at your job after becoming eligible for Medicare and continue to have health insurance through your employer, you likely don't need to purchase Medigap. Similarly, if you have health coverage through your spouse's employer health plan, you probably won't need additional Medicare supplement insurance. However, it is important to note that health plans vary, so it is recommended to consult your employer's benefits coordinator to understand how well your current plan covers the gaps in Medicare coverage before making a decision about purchasing Medigap.
If your employer coverage ends, you will have the opportunity to sign up for Medicare Part B without incurring a late enrollment penalty. Once you enroll in Part B, your Medigap Open Enrollment Period will begin, and you will have six months to purchase a Medigap policy, even if you are still covered by your employer's health plan. During this period, you can shop around for Medigap policies and compare prices and benefits offered by different insurance companies. It is important to consider not only the price but also the company's reputation and the specific benefits covered by the policy to ensure it meets your needs.
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Frequently asked questions
The best time to shop for Medicare Supplemental Insurance (also known as Medigap) is during your Medigap Open Enrollment Period. This is a one-time, 6-month period that starts when you enrol in Medicare Part B at age 65 or older. During this time, insurance companies cannot deny you coverage based on your health history.
If you're under 65 and have Medicare due to a disability or ESRD, you may not be able to buy a Medigap policy until you turn 65. Federal law generally does not require insurance companies to sell Medigap policies to people under 65, but some states do offer Medigap policies to this age group. Check with your State Insurance Department for more information.
It's important to compare the benefits of different plans and consider your current and future healthcare needs. Also, be aware that not all plans are offered in every state, and prices can vary depending on where you live and the type of policy you choose.
Medicare Supplemental Insurance (Medigap) is extra insurance that helps cover the out-of-pocket costs that Original Medicare (Parts A and B) does not pay. You can only buy Medigap if you have Original Medicare. You may not need Medigap if you have other health coverage, such as group health insurance through an employer or a Medicare Advantage plan.
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