Medicare supplemental, or Medigap, insurance helps pay for the costs that spill over from your regular Medicare coverage. You can buy a Medicare Supplement plan from private insurers, and plans vary by state and insurer. The plans are standardized by the Centers for Medicare and Medicaid Services, but premiums can vary. Most of the time, a Medicare Supplement policy is guaranteed renewable for life, as long as you continue to pay your premiums. Check this out to find more information about Medicare Supplement plans and how they can help manage your out-of-pocket expenses.
The best Medicare Supplement plan for you will depend on your current and future healthcare needs and costs. For example, if you are planning to get more serious health issues in the future, you may want to consider a Medicare Supplement plan that covers skilled nursing care or other long-term care benefits. You should also consider your out-of-pocket costs and budget. Some Medicare supplements cover more than others, and some have higher premiums but lower out-of-pocket expenses. You can choose a Medicare Supplement plan that works for you by deciding which benefits are most important to you and then reviewing the options available in your area.
If you are enrolled in an employer’s retiree health plan, you may not need a Medicare Supplement policy. However, if you decide to switch from an employer’s plan or you are moving out of your Medicare Advantage provider’s service area, a Medicare Supplement policy may be helpful for you.
It’s best to purchase a Medicare Supplement during your open enrollment period, which is the first six months after you become eligible for Medicare at age 65 or older. However, you can still get a Medicare Supplement after the open enrollment period if you meet certain conditions. You can find out more about your Medicare Supplement plan options and open enrollment periods by contacting your insurer or using the Medicare Plan Finder.
You should know that Medicare Supplement policies do not include prescription drug coverage, so you will need to enroll in a separate Medicare Part D plan. You can do this during your open enrollment or any month when you are able to sign up. Choosing the right plan will depend on your prescription drug needs and how much you are comfortable paying for your coverage.
Typically, you will pay more for a plan with comprehensive coverage, such as Plan F, but this will help pay for the gaps in coverage that are not covered by other options. Other supplements, such as Plan G and Plan N, offer more affordable coverage by requiring you to pay some cost-sharing in return for lower premiums.
Private insurers that sell Medicare Supplement plans differ in their plans offered, states served, prices, extra perks and customer service. NerdWallet has reviewed and ranked the top insurance companies for Medicare Supplement plans based on their financial strength, service quality, customer service, and other factors. Learn more about the best Medicare Supplement companies in 2024 here.