How to Choose a Medigap Plan

About

Medicare 101

Current Clients

How to Choose a Medigap Plan

By Daniel Petkevich

Jan 10, 2023

Making Sense Out of the Medigap Alphabet Soup

Ever heard folks talking about Plan F or Plan G? Those are Medigap plans. Here, we'll explain what they are and why we think Plan G is a good fit for folks who want the most coverage.

Stay Up to Date on Medicare!

Medigap plans exist to - you guessed it - fill the gaps in Part A (In-Patient Coverage) and Part B (Out-Patient) coverage. They are plans that are subsidized and defined by Medicare but offered by private insurance carriers. What that means is you'll purchase a Medigap plan from a private carrier, like Cigna or Anthem, and that the benefits of the same plan are the same across carriers. Plan G from Cigna is the same as Plan G from Anthem. If you buy a Medigap plan, you'll pay a premium for it on top of the Part B premium you're already paying.

At first, choosing a Medigap plan can be daunting because there's a literal alphabet soup of options. There's Plan A, Plan B, Plan C, Plan D, Plan F, Plan G, Plan K, Plan M, and Plan N. Here's a description of their benefits:

Whew! That's a lot of information. Let's go through this table by choosing one of the plans with the most checkmarks: Plan G. With Plan G, you get:

Coverage for Part A Coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up - With just Part A, you have to pay $400 per day in 2023 or more after the 61st day you're in the hospital. Plan G covers this and gives you an extra year of covered days.
Part B Coinsurance - With Part B, you're on the hook for 20% of medical expenses after you meet your deductible. Plan G covers all qualifying medical expenses after you meet your deductible.
Blood - Should you need blood, Plan G covers the first three pints, which Part A does not.
Part A Hospice & Skilled Nursing Facility Care - Should you go to a hospice or skilled nursing facility, Plan G covers your coinsurance.
Part A deductible - Plan G covers your Part A deductible, $1,600 in 2023.
Part B deductible - Plan G does not cover this.
Part B Excess Charge - Doctors who accept Medicare will sometimes bill more than what Medicare will reimburse. Usually, you are on the hook for this "excess charge" but Plan G will cover it.
Foreign Travel - Plan G will pay for 80% of your medical expenses abroad up to $50,000.
Out of Pocket Limit - There is no out-of-pocket limit

Now let's get to choosing a plan. In the world of insurance, paying more doesn't always get you better coverage. A plan's premium is dictated by a number of factors, one of which is how many people are enrolled in it. Generally, the more people enrolled in a plan the lower its premium.

This relationship between coverage and premium is important to remember because around two-thirds of the people enrolled in Medigap plans are enrolled in Plans F or G. They offer the most coverage of all the Medigap plans but aren't the most expensive. As an example, consider the average prices of Medigap plans in California for a 65-year-old non-smoking female from carriers with at least an AM Best rating of "A-".

Looking at this data, we can immediately rule out five of the 12 Medigap plans available. Here's how:

Five plans are more expensive than Plan G, but only one, Plan F, has stronger benefits. This lets us rule out Plans C, D, B, and M. No point in paying more for less coverage.
The only difference between Plan F and G is that the former covers the $226 Medicare Part B deductible. However, looking closely at the chart we see that Plan F costs, on average, about $50 more per month than Plan G. No point in paying an extra $600 a year for $226 in savings.

So we've whittled down our options to G, A, L, N, K and the high deductible versions of Plans F and G. Which one you choose depends on the prices unique to you (we used averages) and how much coverage you want. For folks who want maximum coverage, Plan G is usually the best fit. Go to

www.fairsquaremedicare.com

to see how much you'd pay for Plan G.

Stay Up to Date on Medicare!

Your Medicare One-Stop-Shop

Your guide to Medicare Parts A & B, Medicare Advantage, and Medigap. 100% free.

Get the Fair Square Bulletin

Medicare savings tips, helpful guides, and more.

888-572-6033

info@fairsquaremedicare.com

About

Medicare 101

Current Clients

Medicare Supplement Plans

Medicare Advantage Plans

Fair Square 2025

•

Notice of Privacy Practices

Virgil Insurance Agency, LLC (DBA Fair Square Medicare) and www.fairsquaremedicare.com are privately owned and operated by Help Button Inc. Medicare supplement insurance plans are not connected with or endorsed by the U.S. government or the federal Medicare program. This is a solicitation of insurance. A licensed agent/producer may contact you. Medicare Supplement insurance is available to those age 65 and older enrolled in Medicare Parts A and B and, in some states, to those under age 65 eligible for Medicare due to disability or End-Stage Renal disease. Virgil Insurance Agency is a licensed and certified representative of Medicare Advantage HMO, HMO SNP, PPO, PPO SNP and PFFS organizations and stand-alone PDP prescription drug plans. Each of the organizations we represent has a Medicare contract. Enrollment in any plan depends on contract renewal. The plans we represent do not discriminate on the basis of race, color, national origin, age, disability, or sex. Plan availability varies by region and state. For a complete list of available plans please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov. © 2025 Help Button Inc

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

MULTIPLAN_FairSquareMedicare_01062022_M

How to Choose a Medigap Plan

Making Sense Out of the Medigap Alphabet Soup

Stay Up to Date on Medicare!

Stay Up to Date on Medicare!

Recommended Articles

More of our articles

Your Medicare One-Stop-Shop

About

Medicare 101

Current Clients

Medicare Supplement Plans

Medicare Advantage Plans