You've enrolled in Medicare Parts A and B, but you're discovering something unsettling: Medicare doesn't cover everything, and the out-of-pocket costs can add up quickly.
That's where Medicare Supplement plans (also called Medigap) come in. These plans help fill the "gaps" in Original Medicare—covering deductibles, copayments, and coinsurance that Medicare doesn't pay.
At Chesapeake Financial Planners, we help pre-retirees and retirees understand their Medicare options, including whether a Medigap plan makes sense for their situation and budget.
What are Medicare Supplement (Medigap) plans?
Medicare Supplement insurance—commonly called Medigap—is private insurance designed to help pay for the out-of-pocket costs that Original Medicare (Parts A and B) doesn't cover.
These plans are standardized by the federal government, meaning a Plan G from one insurance company offers the same core benefits as a Plan G from another company. The main differences are price, customer service, and company reputation.
Important: Medigap plans only work with Original Medicare. They do not work with Medicare Advantage plans.
What do Medigap plans cover?
Medigap plans can help pay for:
- Medicare Part A coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are exhausted)
- Medicare Part B coinsurance or copayments
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B deductible (only Plan G covers this now for new enrollees)
- Part B excess charges (when doctors charge more than Medicare's approved amount)
- Foreign travel emergency care (up to plan limits)
What Medigap does NOT cover:
- Prescription drugs (you need a separate Medicare Part D plan)
- Vision care
- Dental care
- Hearing aids
- Long-term care
The most popular Medigap plans in 2025
There are 10 standardized Medigap plans lettered A, B, C, D, F, G, K, L, M, and N. However, Plans C and F are no longer available to new Medicare enrollees (those who became eligible for Medicare on or after January 1, 2020).
The most popular plans today:
Plan G: The gold standard
Plan G covers nearly everything except the Medicare Part B deductible (about $240 in 2025). After you meet that deductible, Plan G covers:
- All Part A and B coinsurance and copayments
- Part A deductible
- Part B excess charges
- Foreign travel emergency care
Why it's popular: Comprehensive coverage with predictable costs. You only pay the monthly premium and the annual Part B deductible.
Plan N: The cost-conscious option
Plan N covers most of what Plan G covers, but you'll pay:
- Up to $20 copay for some doctor visits
- Up to $50 copay for emergency room visits (waived if admitted)
- Part B excess charges are NOT covered
Why it's popular: Lower monthly premiums than Plan G, making it attractive if you're healthy and don't visit the doctor frequently.
Plan G High Deductible: For minimal healthcare users
This plan has the same coverage as Plan G, but you must pay a $2,800 deductible (2025) before the plan pays anything.
Why it's popular: Very low monthly premiums (often $30–$60/month). Good for healthy retirees who rarely need medical care.
Plans K and L: Partial coverage options
These plans cover a percentage of your costs rather than covering everything. They have out-of-pocket limits but require you to pay more upfront.
Why they're less popular: Most people prefer the predictability of Plan G or N.
How much do Medigap plans cost?
Premiums vary widely based on:
- Your location: Costs differ significantly by state and zip code
- Your age: Older applicants typically pay more
- The insurance company: Prices can vary by hundreds of dollars per month for the same coverage
- How the company prices policies: Community-rated (same for everyone), issue-age rated (based on age when you buy), or attained-age rated (increases as you age)
Typical monthly premiums (national averages for 2025):
- Plan G: $120–$200+
- Plan N: $90–$150+
- High Deductible Plan G: $30–$60
Important shopping tip: Because Medigap plans are standardized, always compare prices. The lowest-cost Plan G in your area offers the exact same benefits as the most expensive one.
When can you enroll in a Medigap plan?
The best time to buy is during your Medigap Open Enrollment Period, which lasts for 6 months starting the first day of the month you're both:
- Age 65 or older, AND
- Enrolled in Medicare Part B
During this period, insurance companies cannot deny you coverage or charge you more due to pre-existing health conditions.
Outside this window, insurers in most states can use medical underwriting—meaning they can deny you coverage or charge higher premiums based on your health.
Exceptions: Some states have additional protections. Check with your state insurance department.
Medigap vs. Medicare Advantage: Which is better?
This is one of the most important decisions you'll make, and there's no universal answer.
Medigap + Original Medicare:
- Pros: Freedom to see any doctor who accepts Medicare (no networks), predictable costs, comprehensive coverage
- Cons: Requires a separate Part D plan for prescriptions, higher monthly premiums, no extra benefits like dental or vision
Medicare Advantage:
- Pros: Often includes prescription drug coverage, may offer dental/vision/hearing benefits, lower (or $0) monthly premiums
- Cons: Must use in-network providers, may require prior authorization, out-of-pocket costs can be unpredictable
Who Medigap is best for:
- You travel frequently and want nationwide coverage
- You have complex health needs and see specialists regularly
- You prefer predictable costs and comprehensive coverage
- You want the freedom to choose any doctor
Who Medicare Advantage is best for:
- You're healthy and comfortable with network restrictions
- You want prescription, dental, and vision coverage in one plan
- You're on a tight budget and prefer lower premiums
- You stay close to home
At Chesapeake Financial Planners, we help clients evaluate both options based on their health, budget, and lifestyle.
Can you switch Medigap plans?
Yes, but it depends on your health and state.
During your initial enrollment period, you have guaranteed issue rights—meaning you can't be turned down.
After that, switching plans may require medical underwriting (in most states). If you have health issues, you may be denied or charged higher premiums.
However, some situations trigger guaranteed issue rights even after your initial enrollment:
- Your Medicare Advantage plan is leaving your area or stops providing care
- You moved out of your plan's service area
- Your Medigap insurer goes bankrupt
Common Medigap mistakes to avoid
1. Missing your Open Enrollment Period
This is your one chance to get coverage without medical underwriting. Don't delay enrolling in Part B just to save money—you may lose guaranteed access to Medigap.
2. Choosing a plan based solely on premium
While Plan G is Plan G regardless of insurer, customer service and financial stability matter. Research the company's reputation and claims-paying ability.
3. Not shopping around
Prices vary significantly between companies. Get quotes from at least 3–5 insurers before deciding.
4. Forgetting to add Part D
Medigap doesn't cover prescriptions. You'll need a separate Medicare Part D plan for drug coverage.
5. Switching from Medigap to Medicare Advantage without understanding the consequences
If you later want to return to Medigap, you may not qualify due to health underwriting.
How to choose the right Medigap plan
Step 1: Determine your budget
How much can you afford to spend on monthly premiums? Remember to factor in the Part B premium ($174.70/month in 2025 for most people) and Part D premiums.
Step 2: Assess your healthcare needs
Do you see doctors frequently? Do you prefer maximum coverage and predictability, or are you comfortable with some out-of-pocket costs?
Step 3: Compare Plan G vs. Plan N
For most people, the choice comes down to these two. Run the numbers: Would you rather pay higher premiums with Plan G, or lower premiums with some copays under Plan N?
Step 4: Shop multiple insurers
Get quotes from at least 3–5 companies for the same plan letter. Check their customer reviews and financial ratings.
Step 5: Consider your long-term health
If you expect to need more medical care as you age, comprehensive coverage like Plan G may be worth the higher premium.
Your next step
Choosing the right Medigap plan isn't about finding the "best" plan—it's about finding the best plan for you based on your health, budget, and priorities.
At Chesapeake Financial Planners, we help clients navigate Medicare decisions as part of their overall retirement planning—ensuring healthcare costs are built into your financial plan.
Ready to explore your Medicare Supplement options? Schedule a complimentary consultation with our team today.
This material is for educational purposes only and is not intended as insurance advice. Medicare rules and Medigap plans are subject to change. Please consult with a licensed insurance agent or Medicare specialist for personalized guidance.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a registered investment advisor and separate entity from LPL Financial.
Chesapeake Financial Planners | 2402 Scotlon Ct, Forest Hill, MD 21050 | (410) 652-7868 | www.chesapeakefp.com
