What Are the Different Medicare Supplement Plans and Which Is Best?
Last reviewed: July 2026
Medicare Supplement plans, also called Medigap, are private insurance policies that pay the deductibles, copayments, and coinsurance Original Medicare leaves on your tab. There are 10 standardized plans, but most retirees end up choosing between two: Plan G and Plan N. The "best" plan depends on your health, your budget, and how predictable you want your costs to be.
Key Takeaways
- Ten federally standardized Medicare supplement plans exist, but Plan G and Plan N cover the vast majority of new enrollees today.
- Plan G covers everything except the 2026 Part B deductible of $283, then pays the rest.
- Plans C and F are closed to anyone first eligible for Medicare on or after January 1, 2020.
- Medigap never covers prescription drugs; you need a separate Part D plan for that.
About the Author: Jeff Judge, CFP®, AEP®, ChFC®, CLU® is Managing Partner of Chesapeake Financial Planners in Forest Hill, Maryland. He has been helping families and business owners in Harford County and the Baltimore metro area navigate Medicare and retirement income decisions since earning his CFP® certification in 2013, by using Chesapeake Financial Planners’ signature process, the R.U.D.D.E.R. method™. Jeff often tells clients the cheapest premium is rarely the cheapest plan once you add up what you actually pay at the doctor.
What Are Medicare Supplement (Medigap) Plans?
A Medicare supplement plan is private insurance that pays the out-of-pocket costs Original Medicare (Parts A and B) does not. Original Medicare covers roughly 80% of approved costs for most services. Medigap helps cover the other 20%, which has no annual cap on its own.
Here's the part most people don't realize until they shop: these plans are standardized by the federal government. A Plan G from one insurer offers the exact same core benefits as a Plan G from another. What changes is the premium, the company's reputation, and how aggressively they raise rates over time. According to Medicare.gov, that standardization is by design, so you compare price and service rather than fine print. Jeff Judge notes: "Because a Plan G is federally standardized across every insurer, the only real decision you are making is which company has the most stable rate history and the premium you can sustain comfortably as you age."
One hard rule: Medigap only works with Original Medicare. You cannot pair it with a Medicare Advantage plan. If you go Advantage, Medigap is off the table until you switch back, and switching back can require medical underwriting later.
What Do Medicare Supplement Plans Cover?
A Medicare supplement plan can help pay for Part A hospital coinsurance, Part B coinsurance, the Part A deductible, skilled nursing facility coinsurance, the first three pints of blood, hospice coinsurance, and foreign travel emergency care up to plan limits. The richest plans, like Plan G, also cover Part B excess charges, which happen when a provider bills more than Medicare's approved amount.
What Medigap does not cover trips people up constantly. These plans pay nothing toward prescription drugs, dental care, vision care, hearing aids, or long-term care. Drug coverage requires a standalone Medicare Part D plan, and long-term care needs its own strategy entirely.
This is where I send clients down two paths at once. If healthcare costs in retirement are keeping you up at night, the supplement is only one piece. You still need Part D and a plan for the costs Medicare ignores completely.
How Much Should I Budget for Healthcare Costs in Retirement?
Which Medicare Supplement Plans Are Most Popular?
Ten standardized Medigap plans exist, lettered A, B, C, D, F, G, K, L, M, and N. But the Centers for Medicare & Medicaid Services closed Plans C and F to anyone who became eligible for Medicare on or after January 1, 2020. Those plans covered the Part B deductible, and federal law no longer permits new plans to do that. If you were eligible before 2020, you can still buy or keep them.
For most new enrollees, the real decision comes down to three options.
| Plan | Monthly premium | Part B deductible | Part B excess charges | Best for |
|---|---|---|---|---|
| Plan G | Higher | You pay it ($283 in 2026) | Covered | Predictable, near-complete coverage |
| Plan N | Lower | You pay it | Not covered | Healthy retirees who see doctors less often |
| High-Deductible Plan G | Lowest | Inside the deductible | Covered after deductible | Minimal healthcare users comfortable with risk |
Why Is Plan G Considered the Standard?
Plan G covers nearly everything Original Medicare leaves behind except the annual Part B deductible, which is $283 in 2026. Once you meet that deductible, Plan G pays all Part A and B coinsurance and copayments, the Part A deductible, Part B excess charges, and foreign travel emergency care. Your costs become almost entirely predictable: a monthly premium plus that one deductible.
That predictability is why Plan G dominates the market. Jeff Judge has watched clients sleep better knowing a hospital stay won't turn into a five-figure surprise. The trade-off is a higher premium than leaner plans.
When Does Plan N Make Sense?
Plan N covers most of what Plan G covers but shifts some cost back to you through copays: up to $20 for certain office visits and up to $50 for an emergency room visit that doesn't lead to admission. Plan N also does not cover Part B excess charges, which matters in states where providers can bill above Medicare's approved amount.
The appeal is a lower monthly premium. If you're healthy and don't visit the doctor often, those occasional copays usually cost less over a year than the premium gap. In my experience, Plan N is underused by people who'd actually come out ahead with it.
What About High-Deductible Plan G and Plans K and L?
High-Deductible Plan G carries the same coverage as standard Plan G, but you pay a $2,950 deductible in 2026 before the plan pays anything. The reward is a very low premium, often a fraction of standard Plan G. It fits healthy retirees who rarely use care and can absorb a bad year. Plans K and L cover a percentage of your costs rather than the full amount, with annual out-of-pocket limits. Most people skip them because Plan G and N are simpler to budget around.
What Is the Best Medigap Plan for New Medicare Beneficiaries?
When Should You Enroll in a Medicare Supplement Plan?
The single most important window is your Medigap Open Enrollment Period: the six months that begin the month you turn 65 and are enrolled in Part B. During this window, insurers must sell you any plan they offer at their best rate, regardless of your health history. This is called guaranteed issue.
Miss it, and in most states insurers can use medical underwriting. That means they can charge you more or deny coverage based on pre-existing conditions. I've seen clients put off this decision for a couple of years and discover the door had quietly closed. It rarely gets cheaper to wait.
If you're also weighing how Medicare premiums interact with your income, your enrollment timing and your tax planning are connected.
How do Roth conversions affect IRMAA and Medicare Part B premiums?
Frequently Asked Questions
What is the difference between Medigap Plan G and Plan N?
Plan G and Plan N differ mainly in how they split costs. Plan G covers everything except the annual Part B deductible, giving you near-complete predictability. Plan N has lower premiums but charges copays of up to $20 for office visits and $50 for non-admitted ER visits, and it does not cover Part B excess charges.
Why are Medicare Supplement Plans C and F no longer available?
Plans C and F are closed to anyone who became eligible for Medicare on or after January 1, 2020. Federal law under MACRA prohibited new Medigap plans from covering the Part B deductible. If you were Medicare-eligible before 2020, you can still buy or keep Plan C or Plan F, but new enrollees cannot.
Do Medicare Supplement plans cover prescription drugs?
No, Medicare supplement plans do not cover prescription drugs. Medigap policies sold today exclude drug coverage entirely. To get prescription coverage, you must enroll in a separate Medicare Part D plan. Many retirees pair a Medigap plan with a standalone Part D plan to cover both medical gaps and medications.
Can I switch Medicare Supplement plans later?
You can apply to switch plans at any time, but outside your initial six-month Medigap Open Enrollment Period, insurers in most states can use medical underwriting. That means they can charge more or deny coverage based on your health. Switching is easiest and cheapest when you first enroll at 65 with guaranteed issue rights.
How much do Medicare Supplement plans cost in 2026?
Medigap premiums vary widely by plan letter, insurer, age, location, and rating method, so there is no single price. Plan G typically costs more than Plan N, while High-Deductible Plan G carries the lowest premium because you pay a $2,950 deductible first. Compare identical plan letters across insurers, since benefits are standardized.
The Bottom Line on Choosing a Medicare Supplement Plan
For most retirees, the choice comes down to Plan G for predictability or Plan N for a lower premium, with High-Deductible Plan G as the budget option for healthy, low-utilization years. The smartest move is enrolling during your six-month Open Enrollment window at 65, when no insurer can hold your health against you. If you want help fitting a Medicare supplement plan into your full retirement income picture, download our retirement healthcare planning guide at chesapeakefp.com.
Disclosures
The information provided is for educational purposes only and should not be construed as investment advice. Investment strategies should be tailored to individual circumstances, risk tolerance, and goals. Past performance doesn't guarantee future results. Consult with qualified financial professionals regarding your specific situation.
Advisors associated with Chesapeake Financial Planners may be either (1) LPL Financial Registered Representatives offering securities through LPL Financial, Member FINRA and SIPC, and investment advisor representatives offering investment advice through Great Valley Advisor Group; or (2) solely investment advisor representatives offering investment advice through Great Valley Advisor Group and not affiliated with LPL Financial. Great Valley Advisor Group, and Chesapeake Financial Planners are separate entities from LPL Financial.
