Cost-sharing and high-deductible Medicare Supplement plans have lower monthly premiums. However, these plans have lower premiums in exchange for higher out-of-pocket costs. Below is a highlight of the most affordable Medigap plans for Medicare enrollees.
Top 6 Most Affordable Medicare Supplement Plans
Medigap insurance fills the gaps that Original Medicare doesn’t cover. The plans listed below have a lower monthly cost because they include copayments, coinsurances, or high deductibles.
Consulting an insurance agent can help you save time and money when searching for the most suitable policy.
The Medigap Plans with the lowest premiums include:
- Plan K
- Plan L
- Plan M
- Plan N
- High deductible Plan G
- High deductible Plan F
Medicare Supplement plans don’t include prescription drug coverage, dental, vision, hearing, or life insurance. For coverage on these benefits, you’ll enroll in a separate policy.
Plan K
The average national premium for Plan K ranges from $60 – $120 each month. Although, costs can vary depending on many factors.
Medicare Supplement Plan K covers the following:
- Part A inpatient coinsurance
- Medicare Part B preventive care coinsurance
- 50% of Part A hospice care coinsurance
- 50% of the Part A deductible
- 50% of the Part B coinsurance
- 50% of skilled nursing care coinsurance or copayment
- 50% of the first 3 pints of blood
Plan K includes a maximum out-of-pocket of $6,940. Once you spend that amount on Medicare-covered services, Plan K covers 100% of your remaining costs.
This plan doesn’t cover the Part B deductible, Part B excess charges, or foreign travel emergencies.
Plan L
Another affordable supplemental option is Plan L. Medigap Plan L costs an average of $70 to $190 a month, depending on your state, age, and other factors.
Medicare Supplement Plan L covers the following:
- Medicare Part A coinsurance
- Part B preventive care coinsurance
- 75% of Part A hospice care coinsurance
- 75% of the Part A deductible
- 75% of the Part B coinsurance
- 75% of skilled nursing facility coinsurance or copayment
- 75% of the first 3 pints of blood
There is a maximum out-of-pocket of $3,470 on Plan L. Once you spend the maximum on Medicare-covered expenses, Plan L covers the remaining costs for the year.
Plan L doesn’t cover foreign travel emergencies, Part B excess charges, or the Part B deductible.
Plan M
Medicare Supplement Plan M has a little more coverage than Plan K or L. The average cost for Plan M is $70-$200. As with any Medigap plan, prices vary based on location, age, gender, and more.
Medigap Plan M covers the following:
- Medicare Part A coinsurance
- Part A hospice care coinsurance
- 50% Part A deductible
- Part B preventive care coinsurance
- Part B coinsurance
- Skilled nursing facility coinsurance or copayment
- First 3 pints of blood
- Foreign Travel emergency room care
Plan M doesn’t have a maximum out-of-pocket because this plan has less cost-sharing than Plan K or Plan L.
There is no coverage for Part B excess charges or the Part B deductible with Plan M.
Plan N
Of the cost-sharing plans on this list, Plan N covers the most and is more popular than Plan K, Plan L, or Plan M. The average cost of Plan N is $100-$210 each month. Although, depending on several factors, you pay more or less for this plan.
Medigap Plan N covers the following:
- Medicare Part A coinsurance
- Part A hospice care coinsurance
- Part A deductible
- Part B preventive care coinsurance
- Part B coinsurance
- Skilled nursing facility coinsurance or copayment
- First 3 pints of blood
- Foreign Travel emergency room care
With Plan N, there is a copay of $20 for doctor visits and up to $50 copayment for emergency room visits that don’t result in hospital admission. There is no maximum out-of-pocket with Plan N since the benefits are more significant than Plan K or Plan L.
Plan N doesn’t cover the Part B deductible or excess charges.
High Deductible Plan G
A high-deductible plan could be affordable if cost-sharing plans don’t appeal to you. High-Deductible Plan G costs around $50-$100 per month.
High Deductible Medigap Plan G covers the following:
- Part A coinsurance
- Part A hospice care coinsurance
- Part A deductible
- Part B preventive care coinsurance
- Part B coinsurance
- Part B excess charges
- Skilled nursing facility coinsurance or copayment
- First 3 pints of blood
- Foreign Travel emergency room care
The high deductible amount for this plan in is $2,740 for the year. Preventive care is covered 100% even before you meet the deductible.
High deductible Plan G doesn’t cover the Medicare Part B deductible.
High Deductible Plan F
Beneficiaries eligible for Medicare Part B after 2020 won’t qualify for this Plan. High-Deductible Plan F costs between $50-$110, depending on many factors.
High-Deductible Medigap Plan F covers the following:
- Part A coinsurance
- Part A hospice care coinsurance
- Part A deductible
- Part B preventive care coinsurance
- Part B coinsurance
- Part B excess charges
- Part B deductible
- Skilled nursing facility coinsurance or copayment
- First 3 pints of blood
- Foreign Travel emergency room care
In , the deductible for this plan is $2,740. Once you meet the deductible, the policy works like standard Plan F.
Standard Plan F covers all the gaps in Medicare. However, Plan F and Plan C were considered discontinued several years ago.
Are there any other affordable Medigap plan options?
Medicare Supplement Plan A offers basic benefits. While this plan may have a low premium, the benefits are minimal. Also, Plan B may have a lower premium; however, the benefits still need to be added.
Spending a little bit more monthly to have adequate Medicare coverage is better. In some instances, these basic benefit plans may even cost more than plans with proper coverage.
FAQ’s
Do Medigap plans cost the same in every state?
No, the cost of Medigap varies by state, age, gender, and more. Although, plans do have the same coverage from state to state. For example, Medicare Supplement Plan F has the same benefits in all states. Some states, such as Massachusetts, Wisconsin, and Minnesota, don’t have letter plans, but the policies provide similar coverage options.
Which state has the most expensive Medigap policies?
New York has some of the most expensive Medigap plans due to a higher cost of living and some state-specific Medigap insurance rules. Other states, such as Florida, Connecticut, and Washington, are on the list of most expensive Medigap insurance.
Is Medicare Supplement price based on income?
No, your monthly premium for a Medigap plan isn’t income based. However, Medicare Part B and Medicare Part D have income-related monthly adjustment amounts.
What is the best Medicare Supplement Insurance Plan?
Many people find Medicare Supplement Plan G, Plan N, or Plan F provides adequate coverage for a reasonable cost. The most popular option is Plan F; however, this plan is only available to those eligible for Medicare before 2020.
What is an affordable alternative to Medicare Supplement insurance?
One alternative to Medigap insurance is a Medicare Advantage plan. These plans commonly include Medicare Part D, additional benefits, and low monthly premiums. However, there are some negatives to Medicare Advantage plans.
Which insurance companies offer the most affordable Medigap plans?
Many top Medicare Supplement insurance carriers offer affordable plan options, including Mutual of Omaha, Humana, Heartland National, Aetna, and . Some companies are more competitive than others in certain areas, so it’s best to compare healthcare costs with each company. This will ensure you’re getting the most bang for your buck.
When can I enroll in affordable Medigap insurance?
The best time to sign up for Medigap is during your Medicare Supplement Open Enrollment Period. During this time, you can choose any plan you like without undergoing medical underwriting. However, you can apply for a Medigap plan anytime.
How to Explore Affordable Medicare Supplement Plans
The easiest way to explore your Medigap options is with the help of a licensed insurance agent. Our agents can explain out-of-pocket costs, premiums, plan types, additional benefits, and more over the phone. We’ll even help you identify the best prescription drug plan based on your medications.
Call us now at the number above to discover your Medicare benefit options. Fill out an online rate comparison form to see the cost of Medigap in your area today.
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