If you’re new to Medicare, you’ve likely heard terms like “Medigap” or “Medicare Supplement” and wondered what they mean. Many people find Medicare confusing, especially when trying to understand the different coverage options. This guide explains Medicare Supplemental Coverage in an easy-to-understand way and uncovers important details most people don’t know.

What is Medicare Supplemental Coverage

Medicare Supplemental Coverage (Medigap) is extra insurance you can buy from private companies. It helps pay for costs that regular Medicare doesn’t cover in full, like copays and deductibles. It fills in the gaps so you don’t get stuck with as many out-of-pocket medical bills.

Original Medicare (Parts A and B) is excellent coverage, but it wasn’t designed to cover 100% of your healthcare costs. You’ll still face deductibles, copayments, and coinsurance. A Medicare Supplement plan helps pay extra fees, so you’re not surprised by medical bills.

What Does It Actually Cover?

Here are the specific costs these plans pay for:

Hospital and Medical Costs:

• Part A deductible: $1,676 per benefit period.
• Hospital coinsurance (Part A): $419/day for days 61–90; $838/day for lifetime reserve days.
• Skilled nursing facility coinsurance (Part A): $209.50/day for days 21–100.
• Part B deductible: $257 annually
• Part B coinsurance: Usually 20% of the Medicare-approved cost (after deductible)

The Key Difference: Medigap vs. Medicare Advantage

This is where many people make mistakes because they don’t understand this crucial difference.

Medicare Supplement works WITH Original Medicare: You keep your Medicare card and use it everywhere. The Medigap plan pays for the costs Medicare doesn’t cover.

Medicare Advantage REPLACES Original Medicare: You get a new insurance card from a private company that becomes your primary insurance.

Here’s what many people miss: Once you choose Medicare Advantage, you cannot easily buy a Medigap plan later. Insurance companies can deny you or charge higher rates based on your health.

Understanding Plan Letters

Medicare Supplement plans are labeled by letters — A, B, D, G, K, L, M, and N. These letters identify different sets of benefits, not levels of quality.

If you became eligible for Medicare on or after January 1, 2020, you can’t buy Plan F or Plan C, as they were discontinued for new beneficiaries.

The Most Popular Plans

Plan G: Covers almost everything except the Part B deductible. Once you pay that deductible each year, you typically have no other out-of-pocket costs.

Plan N: Has lower monthly premiums but small copays ($20 for doctor visits and $50 for emergency room visits).

High Deductible Plan G: Offers lower monthly premiums, but you must pay $2,800 out-of-pocket (2024) before the plan begins paying.

The Golden Window: Medigap Open Enrollment

There’s a special six-month window when insurance companies must sell you a Medigap policy. This starts the month you’re both 65 or older and enrolled in Medicare Part B.

During this period:

• You can’t be denied coverage.
• You can’t be charged more due to health issues.
• Coverage starts right away, even with pre-existing conditions.

If you delay signing up for Part B because you’re still working, your six-month Medigap window begins once your Part B coverage starts.

How Medigap Premiums Are Priced

Medigap plans use three pricing methods:

• Community-rated:Everyone pays the same price.
• Issue-age-rated:The price is based on your age when you first buy the policy and doesn’t increase as you get older.
• Attained-age-rated:Premiums increase as you age.

In Florida, most Medigap plans are issue-age-rated, meaning your premium is based on your age when you buy the plan, not your current age.

What Medigap Doesn’t Cover

• Prescription drugs (you’ll need a separate Part D plan)
• Dental care
• Vision or eyeglasses
• Hearing aids
• Long-term care
• Private-duty nursing

Extra Benefits to Know

• Travel coverage:Medigap works anywhere in the U.S., and some plans help cover emergency medical care when traveling abroad.
• Household discounts:Some insurers offer 5%–12% discounts when both spouses enroll.

Making Your Decision

When choosing a Medigap plan, consider:

• How often do you visit doctors
• Whether you have chronic conditions
• If you prefer predictable monthly costs
• How much risk are you comfortable taking

Medicare decisions affect both your health and your budget. Our independent advisors can help you understand your Medicare options in clear, simple terms and guide you to the plan that best fits your life.

About the Author:

Parker was born and raised in Lakeland, FL, where he attended George Jenkins High School. He went on to receive his Bachelor of Science degree in Marketing and Management from the University of South Florida Polytechnic.

In 2008, Parker passed his state insurance exam and began selling Medicare Advantage plans under a local brokerage in Lakeland. In 2010, Parker worked as a sales agent for United Healthcare and became the top salesman until leaving in June 2019 to start his own insurance agency, Health Plus Advisors, Inc.

Parker has been married for almost 11 years to his wonderful wife, Courtney, and has three kids. Boone, age 9, loves to play baseball; Reese, age 8, competes in gymnastics; and Baylor, age 5, loves soccer and softball. During the summer, they love to spend time on the water in Anna Maria; during the winter, visiting family in Georgia and Connecticut.