If you’re approaching 65 and exploring your Medicare options, you’ve likely come across the term ‘Medicare Supplement plan’ — also called Medigap. But what exactly does it cover, how does it work, and is it right for you?
What Original Medicare Covers — and What It Doesn’t
Original Medicare (Parts A and B) covers a wide range of healthcare services, but it does not cover 100% of your costs. You’re typically responsible for deductibles, copayments, and coinsurance — and there’s no cap on your annual out-of-pocket spending with Original Medicare alone.
What a Medicare Supplement Plan Covers
A Medicare Supplement (Medigap) plan is sold by a private insurance company and is designed to fill those coverage gaps. Depending on which plan you choose, it may cover some or all of the following: Part A coinsurance and hospital costs, Part B coinsurance or copayments, the Part A deductible, skilled nursing facility coinsurance, and in some cases foreign travel emergency care.
Medicare Supplement Plan G — The Most Popular Choice
Plan G has become the most popular Medigap option for new enrollees because it covers nearly all out-of-pocket costs after you pay the annual Part B deductible. Once that deductible is met, Plan G covers 100% of approved Medicare costs for the rest of the year.
Who Should Consider a Medicare Supplement Plan?
A Medicare Supplement plan is typically a good fit if you: see doctors frequently or have ongoing medical needs, travel and want coverage that works nationwide, want predictable healthcare costs, or prefer the freedom to see any Medicare-accepting provider without network restrictions.
How Much Does a Medigap Plan Cost?
Medigap premiums vary based on your age, gender, location, and the plan you choose. In California, Plan G premiums typically range between $100 and $300+ per month. Many beneficiaries find that the predictability and peace of mind are well worth it — especially if they use healthcare services regularly.