The Ultimate Guide for Choosing the Right Medicare Supplement Plan

For the majority of our clients, a Medicare Supplement is the perfect way to protect them from the coverage gaps of Medicare. It’s predictable, it’s standardized by the government, and it’s excellent coverage.

But here’s the thing – there are multiple Medicare Supplement plans to choose from, and if you’re a researcher, you might want to know all the nitty-gritty details.

If you’re not interested in all the fine print, just contact us at any time, and we’ll provide you with our best recommendation. No research required.

→ Get a Medicare Supplement Quote

However, if you want all the details, this is your ultimate guide to everything Medicare Supplement.

What Is a Medicare Supplement?

For starters, a Medicare Supplement is a health insurance plan you can purchase to cover the costs left behind from Medicare. Medicare Supplements are also called Medigap plans – these terms are used interchangeably.

In simple terms, Medicare covers about 80% of your Medicare-approved medical expenses. A Medicare Supplement can pay for some or all of the remaining 20%.

Here are a few more details about Medicare Supplements:

• They have no networks – you can see any doctor that accepts Medicare assignment.
• They are standardized by the government, meaning the coverage is the same year after year.
• They are guaranteed renewable, meaning you can’t be dropped from the plan as long as you pay your premiums on time.
• There are a lot of plan options out there, but the plans we recommend and sell the most are Plans G and N.
• They don't include prescription drug coverage, so most clients purchase a Part D prescription drug plan in addition to a Medicare Supplement.

When Do I Need a Medicare Supplement?

You can only buy a Medicare Supplement if you’re on Medicare, so let’s start there.

You can first sign up for Medicare during a seven-month window that includes the three months before you turn 65, the month in which you turn 65, and three months after the month you turn 65.

As with most things, it’s ideal to sign up for Medicare as soon as you can or within the three months before you turn 65. Once you do that, you’ll be given an “Effective Date” for Medicare Part A and Part B.

Once you have those dates, you can contact us to apply for a Medicare Supplement! Additionally, we can help you sign up for Medicare, so come to us as soon as you wish, and we’ll be here to help.

Read more: When do I need to sign up for Medicare and a Medicare Supplement?

The other common scenario is if you’re working past 65 and don’t really need Medicare coverage until you’re off your employer group plan.

In that scenario, you can sign up for Medicare up to three months before your group coverage ends. From there, you have six months after you’ve signed up for Medicare Part B to get a supplement.

If this is confusing, please contact us and we’ll make sure you don’t miss any of the important dates.

Read more: Working Past 65

What Are the Different Medicare Supplement Plans?

There are many different kinds of Medicare Supplements – 11 to be exact. Plans are organized by letters A-N.

Medicare Supplement Benefits Chart

Note: Plan C & Plan F aren’t available if you turned 65 on or after January 1, 2020, and to some people under age 65. You might be able to get these plans if you were eligible for Medicare before January 1, 2020, but not yet enrolled.

*Plans F & G offer a high deductible plan in some states.

**Plans K & L show how much they'll pay for approved services before you meet your out-of-pocket yearly limit and Part B deductible. After you meet them, the plan will pay 100% of your costs for approved services.

***Plan N pays 100% of the costs of Part B services, except for copayments for some office visits and some emergency room visits.

Plans G and N

The most popular Medicare Supplements are Plans G and N.

Plan G covers everything Medicare leaves behind except for the Part B deductible. Now that Plan F is phasing out, Plan G is the plan that offers the most coverage. It does have a higher price tag, but if you want the least amount of medical bills as possible, this plan is a popular choice.

Plan N covers everything Medicare leaves behind except for:

• Part B deductible
• Part B excess charges (this only occurs if you see a doctor who does not accept Medicare)
• Part B copayments (up to $20 for office visits and up to $50 for ER)

If you don’t mind copayments here and there, Plan N can save you some money in premium. On average, Plan N is 28% cheaper than Plan G premiums from the same carrier.

How Much Do Medicare Supplements Cost?

Medigap rates are based on several factors:

• Zip code
• Age
• Gender
• Tobacco usage

You could also get a household discount if you live with another person. That discount percentage varies by Medicare Supplement carrier, and we take it into account when we run your quote.

Read more: Learn the Lingo: What Is the Medigap Household Discount, and How Do I Get It?

In our experience, a typical monthly premium is around $125, so you can use that as a general guide of what a Medigap plan costs. We know – it's far cheaper than the health insurance you’re used to, we’re sure!

Again, your age is a major factor here, so please contact us for an exact quote!

→ Get a Medicare Supplement Quote

Related: How Much Does Medigap Plan F Really Cost?: Medigap Plan F Rates Included

Another factor that has to do with the cost of your Medicare Supplement is rate increases. They’re unavoidable, so expect them. However, what’s the meaning behind them, and is there anything you can do about them?

What Are Medicare Supplement Rate Increases?

Rate increases are just a part of what it means to have a Medicare Supplement.

Rate increases happen for a few reasons:

1. Claims experience, which just means the insurance carrier has had to pay out more than they’re getting, so they raise everyone’s rate
2. Attained age pricing structure, which means the price of the plan is based on your current age, so it will go up each year on your birthday (Happy Birthday! Sick joke, we know.)

Here’s a quick example of a Medicare Supplement age increase scenario:

• At age 65, you pay $92.63.
• At age 66, you pay $92.63.
• At age 67, you pay $92.63.
• At age 68, you pay $96.74.
• At age 69, you pay $100.94.

Those are the two biggies – claims and your age. There are a few other factors that can play into it, like inflation, new technology, and admin costs, but that’s the gist.

Related: A peek behind the curtain of Medicare Supplement insurance rates

Can I Do Anything About Rate Increases?

When rate increases happen, you do have a choice – you can shop around for a better premium from a different company. However, you have to be able to pass medical underwriting in order to switch plans.

If you’re not healthy enough to do that, it can be worthwhile to look at an alternative option that doesn’t require you to pass health questions, such as a Medicare Advantage plan.

Here are some more articles on specific health conditions and how they affect your Medigap eligibility:

• Can you get insurance with COPD?
• Can I get a Medigap Plan If I Have Diabetes?
• Can I get a Medicare Supplement insurance plan if I’m overweight or obese?

Why Should I Buy a Medicare Supplement From an Insurance Agent?

You’re undoubtedly going to get a truckload of mail, phone calls, emails… everyone under the sun is trying to sell you something!

So… what’s the benefit of buying a Medicare Supplement from an agent versus just responding to one of the mailers you get?

To keep this brief, our agents here at Sams/Hockaday represent dozens of carriers, which means we can shop the market for you to find you the best price.

The mailers you get are coming from one carrier, and they usually have big marketing budgets, which means their premiums could be on the higher side.

Read more: Will I save money buying Medicare Supplement insurance through the mail?

Long story short: you’re probably going to pay more if you don’t shop around.

An agent can also do a ton of other great things for you at zero cost:

• Save you time by educating you and answering your questions
• Save you money by shopping the market for you
• Help you switch plans if you need to
• Assist you with claims if or when the time comes
• Do annual reviews with you
• Be your lifelong friend!

Our agents truly love what they do, and a huge part of that is the relationships they make with clients like yourself. (While saving you time and money in the process.)

Read more: 6 Reasons You Should Work With a Medicare Supplement Insurance Agent

Conclusion

To get started, Schedule an Appointment with the agent of your choice right from our website.

Want to learn even more about Medicare Supplements? Here are some related articles:

• Will my Medicare Supplement cover me if I go to Florida for the winter?
• Why switch Medicare Supplement plans when my current plan covers everything?