Medigap plans, also called Medicare supplement plans, are private insurance that can be added onto Original Medicare.
Medigap plans are a good way to get coverage for copays, coinsurance, deductibles, and other out-of-pocket costs associated with Medicare. Some Medigap plans may even cover healthcare received outside the U.S. For prescription drug coverage, you will need to get a Medicare Part D plan.
It’s important to remember that you can’t use a Medigap plan alongside a Medicare Advantage plan. In order to enroll in a Medigap, you must already be enrolled in Medicare Part A and Part B.
Medigap covers the gaps
As its name suggests, Medigap covers the “gaps” in insurance that Original Medicare does not cover, such as copayments, coinsurance, and deductibles, and is handled through a private insurance company. You can purchase a Medigap plan that fits your healthcare needs by choosing from plans available in your state.
You will pay a monthly premium for your Medigap policy, in addition to the monthly premium you pay for Part B. Medigap premiums generally range from around $100 to $250 per month, but if you have a chronic illness or frequent doctor visits, the additional premium could save you money in the long run.
The rules for Medigap’s offerings and benefits vary by insurance company and by state. However, there are some similarities across Medigap Plans A through N.
Your Medigap policy covers only you, and not your spouse. Note that if you have a Medicare Savings Account (MSA) Plan, it’s illegal for anyone to sell you a Medigap policy.
Any Medigap plan is guaranteed renewable as long as you pay your premiums.
Top 10 Medicare Supplement Plans 2020
Here are the top-rated Medicare supplement plans for 2020. Plans may vary in your state. The key is to choose the best-rated plan with the lowest rates and rate trend that’s available to you. The most popular Medigap plans are Plans F, G, and N because they offer the most coverage. Plan F is being phased out in 2020, but only for people who were not age 65 before January 1, 2020. Plans of the same letter offer the same coverage no matter where you live.
- Aetna. Aetna is one of the oldest insurance companies around, having been in business since 1853. The company is reliable, and your rates won’t change over a 12-month period. Their website offers convenient features like tracking claims and requesting an ID card.
- Cigna. Cigna offers good customer service and an easy overall process. Cigna also covers people with serious conditions to which many other insurance companies may not extend coverage. They also offer a seven percent discount if both spouses sign up.
- Manhattan Life. Providing insurance since 1850, Manhattan Life is one of the only providers that offers coverage in Puerto Rico. They also offer a seven percent discount if you live with someone else, and a streamlined website experience.
- Mutual of Omaha. Mutual of Omaha has dealt with Medicare since its inception. They have several subsidiary companies in different states, so your plan might be called “United of Omaha” or something different, but it is still part of the Mutual of Omaha parent company. They feature a website where you can pay your bill and view your account easily, and they offer quick payment of claims and a household discount of 12 percent.
- Bankers Fidelity. Bankers Fidelity is a top-rated company that has 60 years of experience helping seniors with their insurance. They offer guaranteed renewable coverage and an easy-to-use website.
- Transamerica. With top ratings in customer satisfaction, Transamerica earned the People’s Choice Award from Insure.com. They are a financially strong company that has been around since the early 1900s. They also offer household discounts.
- United Healthcare. One of the most popular plans in the U.S., UHC plans also offer the SilverSneakers fitness program.
- Blue Cross Blue Shield. Since 1929 Blue Cross Blue Shield has been providing reliable coverage. They insure about one in three Americans today. Their website offers 24/7 access to policy information. They also offer household discounts and a top-rated mobile app.
- Anthem Medigap. A division of Blue Cross Blue Shield, Anthem plans are sold in certain states. They offer SilverSneakers and other programs to stay healthy and save money.
- Combined Insurance. Since 1922, Combined Insurance has been providing health insurance across North America. They provide over 5 million supplemental policies and feature an easy-to-use self-service portal.
