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What is a Medicare Supplement?

Medicare Supplement Insurance, commonly known as Medigap, aims to bridge the gap in healthcare costs not covered by Original Medicare Parts A and B.  Although Original Medicare provides a foundational level of healthcare coverage for hospital and medical expenses, it doesn’t cover everything.

This is where Medigap plans come into play.  With a Medigap policy, you can minimize additional costs ─ deductibles, copayments, and coinsurance.  Depending on your chosen plan, your policy can cover a significant portion of these expenses.

Choosing the right Medigap plan depends on your healthcare needs and financial situation.  Medigap plans are standardized but offer different coverage levels and premiums.  Some plans with higher monthly premiums might cover almost all out-of-pocket costs, while others with lower premiums have fewer benefits and pay for less out-of-pocket expenses.

When selecting a Medigap plan, weighing the premium costs against the benefits provided is important to find a plan that aligns with your healthcare needs and budget.

Why do I need a Medicare Supplement?  Is supplemental insurance necessary for people with Medicare coverage?

While supplemental insurance isn’t mandatory for people with Medicare, it helps pay for healthcare expenses that Original Medicare does not cover completely.

A Medicare Supplement minimizes out-of-pocket expenses that Original Medicare doesn’t cover, including copayments, coinsurance, and deductibles, ensuring more predictable healthcare spending.

What are the differences between Medicare Supplements and Medicare Advantage plans?

Medicare Supplement and Medicare Advantage plans differ in several key ways:

  • Coverage Origin ─ Medicare Supplement plans are additional policies that work with Original Medicare, while Advantage plans are replacement insurance ─ an alternative way to receive Medicare benefits.
  • Benefits ─ Medicare Supplement plans don’t typically include coverage for routine dental or vision, whereas many Medicare Advantage plans do offer these extra benefits.
  • Provider Choice ─ With Medicare Supplements, you have more flexibility in choosing healthcare providers.  Advantage plans usually have a network of providers you must use to get the lowest costs.

Eligibility and Enrollment

Understanding the eligibility requirements and enrollment timing is crucial when considering a Medicare Supplement.

Qualifying for a Medicare Supplement

To qualify for a Medigap plan, you must be enrolled in both Medicare Part A and Part B.

The ideal time to enroll in a Medigap policy is during your Medigap Open Enrollment Period.  This six-month period starts the first month you are 65 or older and enrolled in Medicare Part B.  During this period, you have a guaranteed issue right to buy any Medigap policy sold in your state, regardless of health status.

If you’re under 65 and eligible for Medicare due to disability or ESRD, your open enrollment period will depend on your state’s laws. Some states may not offer a Medigap open enrollment period for those under 65, and if they do, the timing and rights can differ from the standard open enrollment period for those 65 or older.

Costs of Medicare Supplement Plans

Understanding Premiums

Your premium is the monthly amount you pay to maintain your Medicare Supplement plan.  It varies depending on the plan you choose, the insurance company, your location, and sometimes your age, health status, and whether you were subject to medical underwriting.

What is the typical cost range for Medicare Supplement plans every month?

Generally, Medicare Supplement plan premiums range from $40 to $400 per month.  However, these can be influenced by the specific plan benefits, your geographic area, and the insurance company’s pricing method.

Out-of-Pocket Costs

  • Deductible ─ This is the amount you must pay out of pocket before your Medigap plan starts paying.  Some older plans cover the Part B deductible, while others require you to pay it yourself.

Beyond premiums and deductibles, additional costs may include:

  • Part B excess charges ─ If a doctor charges more than the Medicare-approved amount, you may have to pay the difference.
  • Foreign travel emergency care ─ If your plan includes this benefit, you could be responsible for some costs.

Choosing a Medicare Supplement Plan

When selecting a Medigap supplement, you should understand the variances between plans and which benefits align with your healthcare needs.  Medigap plans differ in what they cost and what they cover.

Medicare Supplement plans are standardized across most states, meaning the basic benefits for each plan (A through N) are the same regardless of the insurance company.  Be aware that some states, like Massachusetts, Minnesota, and Wisconsin, standardize their plans differently.


What are some potential drawbacks of enrolling in a Medicare Supplement plan?

  • Costs ─ Medigap plans come with monthly premiums, which escalate over time and can be a financial concern.
  • Enrollment restrictions ─ There’s a limited enrollment window.  Missing that could result in higher premiums or denial of coverage.
  • Inflexibility ─ If you wish to switch to a different Medigap plan, you might not have guaranteed-issue rights, potentially leading to medical underwriting and the possibility of being charged more or denied coverage based on your health status.
  • Limited Benefits ─ If you need prescription drug coverage, you must enroll in a stand-alone Medicare Part D plan.  Remember that you’ll be responsible for the Part D premium in addition to your Medigap premium.

How Do I Change Medicare Supplement Plans?

Switching Medicare Supplement Insurance plans can be done anytime throughout the year and is not restricted to the Medicare Annual Election Period.  However, specific criteria must be met to make the change successfully.

When Can You Switch Plans? | Special Considerations

  • Anytime ─ You can change Medicare Supplement plans whenever you choose during the year.  There’s no need to wait for specific enrollment periods.
  • Guaranteed Issue Rights ─ If you’re still within your Medigap open enrollment period, insurance carriers cannot use medical underwriting, ensuring that you can switch plans without health considerations playing a role.
  • Approval Not Guaranteed ─ Beyond your initial open enrollment period, changing plans may not be guaranteed, as insurance companies can approve or deny your application based on your health condition.

In most states, you must undergo medical underwriting if you want to change plans later.  Your medical history and prescriptions will be reviewed, and insurers will decide whether to offer you a policy based on this information.

  • State-Specific Rules ─ Some states have exceptions to the standard underwriting requirements, permitting changes to Medigap plans without medical questioning.

Rights and Protections | Guaranteed Renewal of Policy

Your Medigap policy is guaranteed renewable, regardless of any health conditions you may have.  This means that as long as you pay your premiums, your insurance company cannot cancel your policy.  You’re protected from cancellation due to health changes.  This helps ensure peace of mind that your coverage can be continuous.

Choosing the Right Insurance Company

Several factors should inform your decision on selecting an insurance company for your Medicare Supplement plan:

  • Financial Stability ─ Research the financial strength of various insurance companies to ensure they can reliably pay claims.  Look for ratings from institutions like A.M. Best or Standard & Poor’s.
  • Customer Service ─ Evaluate customer service reputations through reviews.  Ask your trusted, independent Medicare broker how well the carrier has handled their clients.

Final Thoughts

Remember, enrollment in a Medigap plan is easiest during your Medigap open enrollment period.  This period begins on the first day of the month that you are both 65 or older and enrolled in Medicare Part B.  During this period, you have guaranteed issue rights, meaning you cannot be denied a Medigap policy or charged more due to health conditions.


Engaging with your trusted, independent Medicare broker can help you navigate the details of Medicare Supplements and guide you through the decision-making process:

  • Understanding Benefits ─ They can explain the intricacies of what each Medicare Supplement plan covers.
  • Personalized Advice ─ An independent Medicare broker can assess your healthcare needs and budget to recommend appropriate plans.
  • Comparison Assistance ─ Independent brokers can compare plans from different private insurance companies to help ensure that your selections align with your needs.

Like any insurance program, Medicare involves complexities regarding its coverage options and costs.  I’m here to help you make informed choices that are aligned with your healthcare needs and financial circumstances.


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