Understanding Medicare Supplement Insurance (Medigap): Coverage, Plans, and Costs
Medicare Supplement Insurance — often called Medigap — helps cover the out-of-pocket costs left after Original Medicare (Parts A and B) pays its share. These plans are offered by private insurance companies and are designed to protect you from unexpected healthcare expenses like deductibles, copayments, and coinsurance.
With a Medigap plan, you can enjoy greater financial security and more predictable healthcare costs.
Original Medicare covers a lot, but it doesn’t cover everything. Medicare Supplement plans help pay for the “gaps” in coverage, including:
Part A deductible and coinsurance (hospital costs)
Part B coinsurance and copayments (doctor visits, outpatient services)
Skilled nursing facility care coinsurance
First three pints of blood needed for a medical procedure
Foreign travel emergency care (up to plan limits)
Note: Medigap plans do not include prescription drug coverage (Part D), dental, vision, hearing, or long-term care.
Every Medigap policy is standardized by the federal government. Plan G from one company offers the same benefits as Plan G from another — only the price and customer service differ.
| Medigap Plan | Key Benefits | Ideal For |
|---|---|---|
| Plan G | Covers everything except the Part B deductible | Most comprehensive coverage available for new enrollees |
| Plan N | Lower premiums, small copays for office and ER visits | Those willing to trade small out-of-pocket costs for savings |
| Plan A | Basic benefits, no Part A deductible coverage | People wanting minimum supplement coverage |
| Plan F | Covers all Medicare-approved costs | Only available to those eligible before January 1, 2020 |
Important: Plan F is closed to new Medicare beneficiaries starting January 1, 2020, but existing enrollees can keep it.
| Feature | Medicare Supplement (Medigap) | Medicare Advantage (Part C) |
|---|---|---|
| Provider Choice | See any doctor who accepts Medicare nationwide | Use network providers (HMOs, PPOs) |
| Out-of-Pocket Costs | Minimal after premium and deductible | May have copays, coinsurance, and out-of-pocket maximums |
| Prescription Drugs | Separate Part D plan needed | Often included in Advantage plans |
| Extra Benefits | Limited | May include dental, vision, hearing, fitness |
| Travel Coverage | Foreign travel emergency coverage (some plans) | Emergency care usually in U.S. only |
Medigap premiums vary based on:
Your age (attained-age, issue-age, or community-rated pricing models)
Location (costs are generally higher in some states)
Insurance company (same plan, different prices)
Gender (some states allow gender-based pricing)
Health conditions (especially after your guaranteed issue window)
Example Costs:
Plan G: Typically ranges from $100 to $300 per month
Plan N: Slightly lower premiums, around $80 to $250 per month
Tip: Always compare prices across multiple insurers — the benefits stay the same, but the cost doesn’t.
The best time to enroll is during your Medigap Open Enrollment Period:
Starts: The month you’re both 65 or older and enrolled in Medicare Part B
Lasts: 6 months
Benefit: During this time, insurance companies cannot deny you coverage or charge you more based on health issues
If you miss this window, you may have to pass medical underwriting to qualify.
Medicare Supplement plans help you fill the gaps in Original Medicare, offering peace of mind, flexibility, and predictable healthcare costs. Whether you want full coverage (Plan G) or a more budget-friendly option (Plan N), there’s a Medigap plan that can fit your needs.
At Graham Life Services, we help you compare your options and find the best Medicare Supplement for your healthcare needs and budget. Let us help you make Medicare simple.
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