There are 10 Medicare supplement ("Medigap") insurance plan types, each denoted by a different letter of the alphabet.
All Medigap plans help pay for the things the Original Medicare plan won’t cover, but the details vary by policy type.
More than 13 million Americans have a Medicare supplement insurance policy, with membership growing three percent each year.
United Healthcare is the single largest Medicare supplement insurance company in America. Other large Medigap companies include Mutual of Omaha, Humana, Cigna and Anthem Blue Cross & Blue Shield.
The best Medicare plan depends on your own needs, preferences and budget. One person’s “best” plan might be a poor match for someone else.
Medigap Plan F is the most popular Medicare supplement in America; one in every two policyholders has a Plan F. It is popular because it gives people the most complete benefits – what’s known as first dollar coverage.
Plans with first dollar coverage cover 100% of your Medicare Part A and Part B out of pocket costs, including deductibles and co-insurance, plus 80% of medical costs when traveling outside the country.
Keep in mind that those generous benefits don't come cheap and you might not even be able to have them in the first place.
Medicare supplement insurance rules changed in 2020 with the passage of the Medicare Access and CHIP Reauthorization Act (MACRA).
People who joined Medicare after January 1, 2020, are not allowed to buy plans with first dollar coverage. Those who already have this coverage are allowed to keep it.
Plan G is less expensive than Plan F and has almost all the same benefits. Generally speaking, this is what many industry experts call the best Medicare supplement on the market.
If you want this coverage but your budget is tight, you may consider the Plan G High Deductible option.
Some Medicare enrollees find a Medicare Advantage plan to be a better fit.
Most Medicare Advantage plans have a $0 monthly premium in addition to your regular Part B premium normally taken out of your Social Security check each month.
Along with giving you hospital and medical benefits, Medicare Advantage plans frequently also include Part D drug coverage and extra benefits like dental care.
Remember that unlike a Medicare supplement, Medicare Advantage plan members are subject to a doctor network. They sometimes also require referrals or prior authorizations before the enrollee is allowed to see a specialist.