Top Medigap (Medicare Supplement Health Insurance) Coverage: What You Need to Know [2024]

The top Medigap (Medicare Supplement Health Insurance) coverage plans cover the extra expenses associated with healthcare like deductibles and copayments. Most Medicare Advantage plans provide prescription drug benefits as well as coverage for hearing, dental, and vision costs. We’ve done the research and can tell you how to pick the best health insurance plan to supplement your Medicare coverage.

Medicare Supplement Health Insurance Coverage Explained

Medicare Supplement insurance, also known as Medigap, is private insurance you can purchase to handle those costs that traditional Medicare doesn’t cover.

When you need help with copayments, deductibles, or coinsurance bills, you can count on your Medicare Supplement Insurance (or Medigap) to work alongside Original Medicare. Let’s break down exactly what Medigap is all about:

• To start with, you must already be enrolled in Medicare Part A and Part B to buy Medigap insurance.
• Next, you need to compare health insurance quotes to find the right plan.

Medigap is not provided by Medicare, but offered by private insurance companies, so you will want to shop around a bit to find the plan that fits your budget and needs. There are several factors here that determine the most popular Medigap plans.

A great benefit of having a Medicare Supplement plan is each Medigap policy offers guaranteed renewals. Your provider is not allowed to cancel your policy if you have or develop health problems. As long as you continue to make your monthly payments, your coverage will be maintained.

Read more: Top Medicare Part A and B Coverage: What You Need to Know

Top Medigap (Medicare Supplement Health Insurance) Coverage Options

Private insurance companies provide Medigap, so you will see varying costs associated with these plans. To help determine the right plan for you, we’ve analyzed the most popular Medicare Supplemental insurance plans and their related costs.

Among those adding supplements to their Medicare plans, Medigap Plan F has traditionally been the most popular.  Before 2020, you could enroll in Plan F and pay a larger deductible in exchange for complete coverage of all the expenses not covered by Medicare (read our “What is the maximum out-of-pocket expense with Medicare?” for more information). However, changes in legislation mean Plan F is no longer available to new applicants. If you were enrolled in Medicare before 2020 you can keep the supplemental coverage, but otherwise, you are out of luck. The closest options are Plans G and N.

Each of these plans offers substantial coverage of your healthcare costs related to copayments and deductibles, just like Plan F, but with lower premiums available. Both Plan N and Plan G are available to new Medicare enrollees and are rapidly growing in popularity.

Comparing Medicare Supplement Health Insurance Costs

You may be looking for the cheapest health insurance, but be advised that Medigap insurance plans do not all provide the same benefits. Rates are determined by a variety of factors. Each private insurance provider determines its own prices for premiums, and these amounts can change over time. Age, date of enrollment, and plan type are the three main categories for rate determination.

Generally, your age will determine the cost of your monthly premiums, and some plans will cost more as you age. Older enrollees will pay higher premiums, and these rates will increase as you age.

Issue-determined rates are established on the date you enroll. Your monthly bill is determined on the date you sign up, and it will not change over time. Community-rated plans charge a set rate for all enrollees based on community standards for all participants. With these plans, your rates won’t be affected by your age or any other factors.

You will be paying these monthly premiums to the private insurance company that offers the Medicare Supplement plan you choose. This will be in addition to your regular payments for your original Medicare plan.

The Difference Between Medigap vs. Medicare Advantage Plans

Another viable method to boost your Medicare insurance coverage is to enroll in a Medicare Advantage plan. But what is the difference between a Medicare Advantage plan and Medicare Supplement Health Insurance?

While each plan type is similar in approach, there are significant differences between Medigap and Medicare Advantage plans. Let’s compare these additions to Original Medicare plans now.

First, Medicare Advantage plans combine Medicare Parts A and B and also provide additional coverage. Many include dental, vision, and hearing coverage as well as prescription drug coverage.

Medicare doesn’t cover prescription drugs, and neither do any Medicare Supplement plans. This means that if you want your prescription drug costs to be covered, you will need to add Medicare Part D to your insurance portfolio. If you then enroll in a Medicare Supplement plan, you could be paying for original Medicare, Medigap, and Medicare Part D. With Medicare Advantage, you have all three in one premium payment.

In addition, unlike Original Medicare, Medicare Advantage provides a ceiling for your out-of-pocket costs, so you can avoid unexpectedly high healthcare costs.

The Centers for Medicare and Medicaid Services (CMS) work with private health insurance companies to provide Medicare Advantage plans. These insurance providers have contracts with Medicare so that they can provide all the benefits of Medicare Part A and Part B, as well as the additional benefits Medicare Advantage provides. In this way, just like with Medigap insurance, you will get your coverage through a private insurance company and pay them directly.

The best way to find the top Medigap (Medicare Supplement Health Insurance) coverage plans near you is to be informed and compare multiple Medigap and Medicare Advantage plans before buying.

Decide specifically which benefits you want to receive and how much you want to spend, then enter your ZIP code below to find affordable Medicare Supplement Health Insurance companies in your neighborhood.