What Is The Most Popular Medicare Supplement Plan

What Do Medicare Supplement Plans Cover?

All 10 Medicare Supplement plans offer the following core set of benefits:

• 100 percent of Your Part A Coinsurance There is also an additional 365 days of coverage after your Part A benefits are exhausted.
• Part B Coinsurance Plan K pays 50 percent, Plan L pays 75 percent, all other plans pay 100 percent.
• Your First Three Pints of Blood Each Year Plan K pays 50 percent, Plan L pays 75 percent, all other plans pay 100 percent.
• Part A Hospice Coinsurance Plan K pays 50 percent, Plan L pays 75 percent, all other plans pay 100 percent.

Some plans build on these baseline benefits and cover other out-of-pocket costs, such as your Part A and Part B deductibles, Part A skilled nursing facility coinsurance, and Part B excess charges. A few plans even offer a foreign travel emergency benefit that helps cover medical costs if you need care while traveling outside the United States.

Medicare Supplement Plan Benefits at a Glance

Plan F has the most comprehensive coverage you can buy. If you choose Plan F, you essentially pay nothing out-of-pocket for Medicare-covered services. Plan F pays 100 percent of your Part A and Part B deductibles, coinsurance amounts, and excess charges.

If you’re worried about budgeting for healthcare costs, Plan F is also a great choice because you’ll know exactly how much you’ll spend each month on Medicare expenses.

How Much Does Medicare Supplement Plan F Cost?

Plan F premiums are usually the highest of all Medicare Supplement plans. This makes sense because it offers the highest level of coverage.

Medicare Supplement costs vary based on a number of factors, including your age, sex, smoking status, and even your ZIP code.

The following table shows national average 2020 Plan F premiums according to enrollee age:

Lower Monthly Premiums With High-Deductible Plan F

Plan F is also available in a high-deductible option. With the high-deductible plan, you pay the first $2,340 (in 2020) of your out-of-pocket costs, then your plan covers 100 percent of your share for covered Medicare services.

For example, if you went to the emergency room for chest pain and were ultimately admitted to the hospital for a week, you would pay the $1,408 Part A deductible, the $198 Part B deductible, and the first $734 of your Part A and Part B coinsurance.

Your plan would pay 100 percent of the remaining costs for that admission and all other services for the rest of the calendar year.

The average premium for high-deductible Plan F is around $50 a month in 2020.

Is Plan F Going Away?

Legislation passed in 2015 eliminates Plan F for people who first become eligible for Medicare on or after January 1, 2020. The good news is that if you were first eligible before that date, you may still be able to buy Plan F.

Plan F and Part B Excess Charges

Some states have state-specific laws affecting Medigap plans. Eight states currently forbid providers from charging the 15 percent Part B excess charges.

If you live in one of the following states, you might save money if you buy a plan without the Part B excess charges benefit:

• Connecticut
• Massachusetts
• Minnesota
• New York
• Ohio
• Pennsylvania
• Rhode Island
• Vermont

Medicare Supplement Plan F is best suited for:

• People who first became eligible for Medicare before January 1, 2020
• People who don’t want to pay any out-of-pocket costs for covered healthcare services
• People who see providers that don’t accept assignment and are billed for Part B excess charges

Plan G has essentially the same comprehensive benefits as Plan F, except that it doesn’t cover the Part B deductible. Plan G pays 100 percent of your out-of-pocket costs for covered services once you meet your Part B deductible.

The following chart shows average 2020 Plan G premiums according to enrollee age:

There’s also a high-deductible Plan G option available if you want the same comprehensive coverage with a much lower monthly premium. Once you pay $2,340 in covered healthcare costs, your plan pays 100 percent of your out-of-pocket costs.

Plan G and Part B Excess Charges

Plan G also covers your Part B excess charges. If you live in Connecticut, Massachusetts, Minnesota, New York, Ohio, Pennsylvania, Rhode Island, or Vermont, Plan D might be a good option. This is because Plan D provides the same benefits as Plan G, except for coverage of the Part B excess charges. It’s a good idea to compare premiums to see if you can save money with Plan D.

Medicare Supplement Plan G is best suited for:

• People who first became eligible for Medicare on January 1, 2020 or later
• People who want predictable out-of-pocket costs
• People who want the premium flexibility of a high-deductible option

Why Is Medicare Supplement Plan N So Popular?

Plan N is a value-priced plan with comprehensive benefits. It covers 100 percent of your out-of-pocket costs under Part A and Part B, except for the Part B deductible and Part B excess charges.

The one catch with Plan N is that you pay a small copayment each time you see a doctor or visit the emergency room.

Here’s how it works: Assume you’ve already met your Part B deductible for the year. When you see the doctor, you pay a copayment of up to $20 and your Medicare Supplement plan pays 100 percent of the balance.

How Much Does Plan N Cost?

The average monthly premium for Plan N is $111. Copayments are typically up to $20 for primary and specialist care, and up to $50 for emergency room visits. The $50 copay is waived if you are admitted to the hospital.

There are usually no copayments with the following services:

• Urgent care visits
• Home healthcare
• Durable medical equipment

Medicare Supplement Plan N is best suited for:

• People who want comprehensive coverage with a relatively low monthly premium
• People who don’t mind a small copayment at the time of service
• People who don’t have to worry about Part B excess charges

The Bottom Line

Plan F, Plan G, and Plan N are the most popular plans because they ensure predictable out-of-pocket Medicare costs. No matter which of these plans you choose, you know how much you’ll pay when you receive healthcare.

The Medicare Plan Finder is a great resource for comparing plans in your area. You can also talk with a licensed Medicare broker if you want more detailed information about individual insurance companies and plan premiums.