In our experience, the most commonly purchased Medicare supplement insurance policies are Plans F, G and N.
These three are popular because they cover most gaps and are widely available. Competition helps keep premiums low for new enrollees and those who are shopping for better rates.
Plans G & F are the most comprehensive policies. They check the most important boxes as you can see in the chart above. While popular, they do not necessarily offer the best value. More on that below. Traditional Plan F covers all deductibles, copays and coinsurance not covered by Medicare. As you might guess, it has the highest monthly premiums.
So long as your healthcare expenses are approved by Medicare (and most are), Plan F will fill in all of the remaining gaps. You will have nothing more to pay. It does not matter how big the bill, Plan F picks up where Medicare leaves off. There are no calendar year or lifetime maximums – your policy will never stop paying – and it can never be cancelled due to usage. (This is true of all Supplements.)
It’s important to know, however, recent legislation eliminated the sale of Medicare supplement which cover the Part B deductible. This change began in January of 2020. Plans affected include C, F and High Deductible F.
If you have these policies, you can keep them – and even shop for new ones. This legislation only affects those who are new to Medicare in 2020 and thereafter. Those beneficiaries will not be able to purchase Plans F, C and HD Plan F. We are seeing much more interest in Plan G and Plan N because of these changes.
High Deductible Supplements
Plans G and F also offer a high deductible version. They have a $2,370 deductible for 2021. It was $2,340 in 2020, $2,300 in 2019, $2,240 for 2018, $2,200 in 2017 and $2,180 in both 2016 and ’15.
This amount must be met before your High Deductible supplement pays benefits, but Medicare still pays its portion first as it normally would. High Deductible Medigap premiums are the lowest available in most states. They are distinguishable from their traditional counterparts based on cost. Our clients who are in good health sometimes prefer these lower premiums when compared to higher cost policies.