Medicare Supplement Insurance Explained
Understand Medicare Supplement (Medigap) insurance, the different plan options (A-N), how to choose the right plan, enrollment periods, and costs.
Key Takeaway
Medigap policies help cover gaps in Original Medicare. Plan G and Plan N are the most popular for new enrollees. Enroll during your 6-month Open Enrollment Period to avoid medical underwriting.
Introduction
Medicare Supplement insurance, also known as Medigap, helps pay for some of the healthcare costs that Original Medicare doesn't cover, such as copayments, coinsurance, and deductibles. These policies are sold by private insurance companies and work alongside your Original Medicare coverage.
Understanding Medigap is important for veterans because it can help cover costs when you use Medicare instead of VA facilities. This guide will explain all Medigap plan options, costs, enrollment periods, and how Medigap works with VA benefits.
What Medigap Covers
Medigap policies are standardized, meaning Plan G from one company offers the same coverage as Plan G from another. However, premiums can vary significantly between companies.
| Benefit | Description | Coverage |
|---|---|---|
| Part A Coinsurance and Hospital Costs | Covers your share of costs for hospital stays beyond what Medicare pays | ✓ Covered |
| Part B Coinsurance or Copayment | Covers the 20% coinsurance for most Part B services | ✓ Covered |
| Blood (First 3 Pints) | Covers the cost of the first 3 pints of blood per year | ✓ Covered |
| Part A Hospice Care Coinsurance | Covers your share of hospice care costs | ✓ Covered |
| Skilled Nursing Facility Coinsurance | Covers your share of costs for extended skilled nursing facility stays | Varies by plan |
| Part A Deductible | Covers the Part A deductible ($1,736 in 2026, up $60 from 2025) | Varies by plan |
| Part B Deductible | Covers the Part B deductible ($283 in 2026, up $26 from 2025) | Varies by plan |
| Part B Excess Charges | Covers charges above Medicare's approved amount from providers who don't accept assignment | Varies by plan |
| Foreign Travel Emergency | Covers emergency care when traveling outside the U.S. (up to plan limits) | Varies by plan |
All Medigap Plan Types Explained
There are 10 standardized Medigap plans (A, B, C, D, F, G, K, L, M, and N). Plans C and F are no longer available to new enrollees after 2020, but existing enrollees can keep them.
Plan Plan A
Basic benefits only
Best For:
Minimal coverage needs, lowest cost option
Plan Plan B
Basic benefits + Part A deductible
Best For:
Slightly more coverage than Plan A
Plan Plan C
Comprehensive (not available to new enrollees after 2020)
Best For:
Grandfathered enrollees only
Plan Plan D
Good coverage, includes Part A deductible and skilled nursing
Best For:
Balance of coverage and cost
Plan Plan F
Most comprehensive (not available to new enrollees after 2020)
Best For:
Grandfathered enrollees only - maximum coverage
Plan Plan G
PopularComprehensive coverage (most popular for new enrollees)
Best For:
Maximum coverage with predictable costs - covers everything except Part B deductible
Plan Plan K
Partial coverage with out-of-pocket limit
Best For:
Lower premiums, willing to pay some costs
Plan Plan L
Partial coverage with lower out-of-pocket limit than Plan K
Best For:
Lower premiums with some cost-sharing protection
Plan Plan M
Good coverage, 50% of Part A deductible
Best For:
Balance of coverage and cost
Plan Plan N
PopularGood coverage with some copayments
Best For:
Balance of coverage and cost - popular alternative to Plan G
Plan Comparison: G vs. N (Most Popular for New Enrollees)
Plan G and Plan N are the two most popular Medigap plans for new enrollees. Here's how they compare:
Plan G
Premium:
Higher than Plan N, but more comprehensive coverage
Plan N
Premium:
Lower than Plan G, but some cost-sharing
When to Enroll: Medigap Open Enrollment Period
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This is a 6-month period that begins the month you're 65 and enrolled in Medicare Part B.
Medigap Open Enrollment Period
CriticalBest time to buy - guaranteed issue rights, no medical underwriting
After Open Enrollment
May be subject to medical underwriting, could be denied or charged more
Guaranteed Issue Rights
Special rights to buy Medigap without medical underwriting in certain circumstances
Guaranteed Issue Rights
During your Medigap Open Enrollment Period, you have guaranteed issue rights, which means:
- Insurance companies cannot deny you coverage
- They cannot charge you more due to pre-existing conditions
- They must sell you any Medigap policy they offer
- You can switch plans during this period without medical underwriting
Costs and Pricing Factors
Medigap premiums vary significantly by plan, company, location, age, and other factors. Understanding pricing helps you make an informed decision.
Premium Range
Medigap premiums typically range from $100 to $300+ per month, depending on several factors.
Plan Type:
More comprehensive plans (like Plan G) cost more than basic plans (like Plan A).
Insurance Company:
Same plan can cost 50-100% more from different companies. Always compare prices.
Location:
Premiums vary by state and even by zip code within a state.
Age:
Some companies use age-rated pricing (premiums increase with age) or issue-age pricing (premiums based on age when you buy).
Gender:
Some states allow gender-based pricing, which can affect premiums.
Pricing Methods
Insurance companies use different methods to price Medigap policies:
Community-Rated (No-Age-Rated):
Same premium for everyone, regardless of age. Premiums may increase due to inflation but not age.
Issue-Age-Rated:
Premium based on your age when you buy the policy. Premiums increase with inflation but not your age.
Attained-Age-Rated:
Premium increases as you age. Starts lower but can become expensive over time.
How Medigap Works with VA Benefits
For veterans, understanding how Medigap coordinates with VA benefits is important for making the right decision.
Medigap Only Works with Medicare
Medigap policies only pay for services covered by Original Medicare. They do not pay for VA services.
- Medigap covers gaps in Original Medicare when you use Medicare providers
- When you use VA facilities, VA pays for care - Medigap doesn't apply
- Medigap is valuable when you use Medicare instead of VA
When Medigap Makes Sense for Veterans
Medigap can be valuable for veterans in certain situations:
Frequent Medicare Use
If you frequently use Medicare providers (when VA isn't convenient), Medigap can reduce out-of-pocket costs.
Travel Coverage
Medigap provides predictable costs when using Medicare while traveling away from VA facilities.
Cost Predictability
Medigap provides predictable monthly costs instead of variable copayments and coinsurance.
When Medigap May Not Be Necessary
Medigap may not be cost-effective if you primarily use VA benefits:
- If you rarely use Medicare providers, Medigap premiums may not be worth the cost
- If you live close to VA facilities and primarily use VA care
- If you're comfortable with Original Medicare's cost-sharing and don't need predictable costs
Choosing the Right Plan for Veterans
Consider these factors when choosing a Medigap plan:
How Often You'll Use Medicare
If you frequently use Medicare providers (when traveling, for convenience, or when VA isn't accessible), a more comprehensive plan like Plan G may be worth the higher premium.
If you primarily use VA and only occasionally use Medicare, a lower-cost plan or no Medigap may be sufficient.
Cost vs. Coverage Trade-off
Plan G offers the most comprehensive coverage (except Part B deductible) but higher premiums. Plan N offers good coverage with lower premiums but some cost-sharing.
Consider your budget and how much you're willing to pay monthly vs. how much you're willing to pay out-of-pocket when you use Medicare.
Compare Prices
Same plan can cost significantly different amounts from different companies. Always compare prices from multiple insurers.
- Use Medicare's Medigap Policy Search tool
- Contact multiple insurance companies
- Consider both premium and company reputation
Related Resources
Need Help Choosing a Medigap Plan?
Our expert advisors can help you understand Medigap options, compare plans and prices, and determine if Medigap makes sense for your situation, especially when coordinating with VA benefits. Get personalized guidance tailored to your needs.