What Medicare Supplement Is The Most Popular Medigap?
The most popular Medigap or Medicare Supplement plan selected by individuals turning 65 is Plan G. Here’s the latest data from the American Association for Medicare Supplement Insurance.
Most Popular Medigap Plan Choices For Those Turning Age 65
- G – 51.0%
- N – 38.3%
- High Deductible G – 7.4%
- F / HD Plan F – 3.3%
While Plan F is no longer available for individuals who are new to Medicare, those with existing coverage may continue their Plan F coverage. These can be people who qualified for Medicare prior to age 65.
Why Is There Medicare Part C and Also Medicare Plan C?
Some 14 million Americans have coverage that’s called Medicare Supplement. These are different from Medicare Advantage plans and we know the terminology can be confusing.
Medicare Advantage is often called Medicare Part C. Medicare Supplement is often called Medigap. And, to keep things really confusing, Medigap plans are identified by letters. Yup, there is a Plan C. It’s very different from Part C.
If you don’t want to be confused, we strongly recommend you speak to one (or two) Medicare insurance agents. Some offer both Medicare Advantage AND Medigap. Find one who can help you make the best choices for your need and budget.
What Is Medigap G And Why Is It So Popular?
There are good reasons that G is so popular.
Medigap plans are health insurance policies that help to cover some of the costs that Medicare does not cover. That’s why the word ‘gap’ is used.
Medigap plans can help to cover:
- Copayments for doctor visits and other services
- Coinsurance for hospital stays, including skilled nursing facilities
- Preventive services
- The Medicare Part A & Part B deductible
- Part B excess charges
- Foreign travel emergencies (generally up to $50,000)
The Reason So Many Want Plan G
You have the ability to see any doctor, specialist or health professional who accepts Medicare. The same is true for hospitals. Want to go to the Mayo Clinic? No problem.
Medicare Advantage plans can designate who you can see for care. If you show up in an Emergency Room, they may treat and then transfer you to a facility included under your plan. And, some healthcare providers will no longer accept Medicare Advantage plan coverage (the Mayo Clinic is one that no longer accepts).
What Is The Plan G Deductible?
Medicare sets annual deductibles for Medicare Part A (hospital) the deductible is $1,600 for 2023. For other healthcare (such as doctor visits) covered by Medicare Part B (Not Plan b) the deductible is $226 (2023).
Medigap Plan G pays the hospital deductible. It also covers the expensive daily copays that you might encounter for a hospital stay that runs longer than 60 days. Plan G provides an additional 365 days in the hospital after your Medicare benefits run out, and it covers your skilled nursing facility co-insurance (limits apply).
For medical care (doctors, etc.) after you meet the $226 deductible it will cover all expenses for Medicare-approved care.
TIP: Don’t assume that care or services are automatically covered (approved) by Medicare. It’s smart to ask about this when you are making your appointment. You don’t want to be surprised after.
How Much Does Medigap Plan G Cost?
Every year the Association prepares the Medigap Plan G Cost Index. This reports the lowest and highest cost for major cities.
You can expect to pay between $100 and $300 monthly for Plan G coverage. Each insurance company sets their own rates and they can vary significantly. For example, according to our 2022 Price Index, a 65-year-old female in Chicago could pay as little as $116.30 or as much as $235.04 for essentially identical coverage.
TIP: In some places there are only a few insurers offering Medigap plans. But in many, you’ll find between 10 and 20 different companies offering Medigap. For that reason, getting comparison quotes is a smart move.
Read our suggest questions to ask Medicare agents before buying.
Do Rates for Medigap Plan G Increase?
Yes (typically). Most insurers increase the premium charged for Medigap coverage. Typically, this occurs as the policyholder ages.
Costs for Plan G have historically increased an average of 2% – 6% over the last three years. But each insurance company decides how much to increase rates. Some will raise rates faster, and some higher.
TIP: You can ask the Medicare insurance agent you work with for a carrier’s history of rate increases.
What Is The Difference Between Medigap Plan G and N?
The biggest difference between these two plans will be your out-of-pocket costs.
With Plan N you will be responsible for the Part B deductible. Plus you will pay a $20 co-pay for doctor visits. A $50 co-pay for ER visits, as well as excess charges.
With Medigap Plan G, you will be responsible for the Part B deductible but you will have no excess charges.
If you rarely or never go to doctors, then Plan N might be worth asking about. You’ll save money on the premium cost.
Find Costs For Most Popular Medigap Plan In Your Area
The Association offers a national directory you can use to find Medicare Supplement insurance agents in your area. It is 100% free and 100% private.
Additional Medicare Information You May Find Of Value
Please click on any of the links (below) to read other recent news stories or reports containing information we believe you may find of value.
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The Illinois Birthday Rule For Medicare Supplement Insurance
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