Original Medicare is great but it doesn’t cover everything. Kupuna who wish to supplement their Medicare coverage may do so with Medigap insurance that covers some of the costs that Medicare doesn’t such as deductibles, copays and coinsurance. But there is more than one supplemental insurance plan available. If you’re signing up for Medicare, you may be wondering how to compare Medigap policies. Like any insurance plan, the best plan for one is not the best plan for all. Seniors will need to consider their personal medical needs and budgets to determine the right plan. Ultimately, the best choice will fill in the coverage gaps where you personally spend the most on health care with a monthly premium that you can afford.
A caring Medicare agent can walk you through your options and help you choose the right Medigap policy for your needs. Schedule an appointment to discuss Medicare supplement plans today.
What is the best Medigap policy for 2021?
For 2021, the best overall (and most comprehensive) Medicare supplement plan for new enrollees is Plan G. Plan N is the best alternative to Plan G.
The best Medigap plan for seniors who enrolled in or who were eligible for Medicare before 2020 is Plan F*.
The best low-cost Medigap plan is Plan K.
While Plan F remains the most popular Medigap insurance policy, Plan G is the most popular with new enrollees who are not eligible for Plan F.
*Plans C & F are grandfathered:
As of January 1, 2020, Medigap plans sold to new enrollees are no longer allowed to cover the Part B deductible. As a result, Plans C and F stopped being sold to anyone new to Medicare starting January 1, 2020. Anyone who was already enrolled in one of these plans before this date may keep their plan. Seniors who were eligible but not yet enrolled may still be able to purchase one of these plans.
If you would like to compare Medigap plans side-by-side, this chart is helpful: https://www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies
How many Medigap plans are there?
Since 2010, when the federal government standardized Medigap plans, there have been 10 Medigap options available in most states. Each plan is designated with a letter of the alphabet: A, B, C, D, F, G, K, L, M and N. In most states, Medigap plans offer the same standardized benefits for each letter category, though the price of each plan may vary.
One thing to understand is that Medigap does not replace your Medicare Part B. Seniors must be enrolled in both Medicare Part A and Part B to be eligible for a Medigap plan.
Medigap plans are standardized
The nice thing about Medigap plans is that they are standardized, which makes it easier to compare them. Each standardized Medigap policy must be clearly labeled and sold as "Medicare Supplement Insurance." Medicare agencies sell from the list of standardized, lettered Medigap plans available in their state. Seniors can rest assured that any Medigap plan they purchase must follow federal and state laws designed to protect them. While every plan comes with the same base benefits, some plans offer extra benefits. Medicare agencies that sell Medigap plans must offer Medigap Plan A, Plan C or Plan F but they may choose which others to sell.
Our independent insurance agents are dedicated to assisting people on Medicare and those who are ready to transition from employer coverage to personal retirement coverage. We help kupuna understand their benefits options and apply for additional coverage, as needed. Because we represent all the major Medicare Advantage and supplement plans in Hawaii, we are able to offer unbiased advice; all at no cost to our clients.
At PBC, our clients are our number one priority and we look forward to getting to know you and your needs. Call us today at (808) 738-4500 to see how we may be of assistance.