Medicare

Medicare Supplement Plans Explained: Which Medigap Plan Is Best for You?

Medicare covers a lot — but not everything. The gaps in Original Medicare (deductibles, coinsurance, copays) can add up to thousands of dollars per year for people who use healthcare regularly. Medicare Supplement insurance, commonly called Medigap, fills those gaps. But with 10 standardized plan types and significant premium variation between insurers, choosing the right Medigap plan requires understanding what you're actually buying. This guide explains every major plan type, compares the most popular options, and shows you how to find the best premium for your situation.

May 2026 · 12 min read · SmartBenefitUSA Research Team
Key Takeaways:
  • Medigap plans are federally standardized — a Plan G from any insurer provides identical coverage. Only premiums differ between insurers for the same plan.
  • Plan G is the most comprehensive plan available to new Medicare enrollees (people who turned 65 after January 1, 2020). After paying the $257 Part B deductible, you pay nothing for Medicare-approved services.
  • Plan N offers similar coverage with lower premiums ($25–$50/month less) in exchange for up to $20 copays per office visit and no coverage of Part B excess charges.
  • Your Medigap Open Enrollment Period (6 months starting when you turn 65 with Part B) is your most important window — insurers cannot deny coverage or raise premiums due to health during this time.
  • Medigap does NOT include prescription drug coverage — you need a separate Part D plan.

What Is Medicare Supplement (Medigap) Insurance?

Original Medicare (Parts A and B) pays for most but not all of your covered healthcare costs. You're left responsible for deductibles, copays, and coinsurance — costs that can be unpredictable and substantial if you need significant care.

Medicare Supplement insurance (sold by private insurers, regulated and standardized by federal and state governments) pays some or all of those remaining costs. You continue to have Original Medicare as your primary coverage; Medigap is secondary. Every Medicare-accepting doctor and hospital in the country accepts Medigap — there are no networks, no referral requirements, and no pre-authorization requirements for covered services.

In 2026, approximately 14 million Medicare beneficiaries have Medigap coverage. Monthly premiums range from about $80/month for the most basic plans to $400+/month for comprehensive plans in high-cost states, depending primarily on age, plan type, tobacco use, and state of residence.

Understanding Medicare's Cost-Sharing Gaps

Before choosing a Medigap plan, it helps to understand exactly what costs Original Medicare leaves you responsible for:

Medicare Gap2026 AmountWhen It Applies
Part A deductible$1,632Each hospital benefit period (not per year)
Part A coinsurance (days 61–90)$408/dayEach hospital day after 60
Part A coinsurance (days 91–150)$816/dayLifetime reserve days
Skilled nursing facility coinsurance$204/dayDays 21–100 of SNF stay
Part B deductible$257/yearAnnual, before Part B kicks in
Part B coinsurance20% of approved costsAll outpatient services, after deductible
Part B excess chargesUp to 15% above approved rateWhen provider doesn't accept assignment

The 20% Part B coinsurance is the biggest risk for most Medicare beneficiaries. A $100,000 cancer treatment course would leave you with a $20,000 bill. A major cardiac event requiring a $50,000 procedure would cost you $10,000 out-of-pocket. These are the costs Medigap is designed to protect against.

The 10 Standardized Medigap Plans

As of 2026, 10 standardized Medigap plans are available: A, B, C, D, F, G, K, L, M, and N. Plans C and F are no longer available to people who became eligible for Medicare on or after January 1, 2020 (they covered the Part B deductible, which was eliminated for new enrollees). The chart below shows what each plan covers:

BenefitABDG*KLMN
Part A hospital coinsurance + 365 days
Part A deductible ($1,632)50%75%50%
Part B coinsurance (20%)50%75%✓*
Part B excess charges
Skilled nursing coinsurance50%75%
Foreign travel emergency
Out-of-pocket annual limit$7,220$3,610

*Plan G: covers everything listed. Does NOT cover Part B deductible ($257/year). *Plan N: copays up to $20/doctor visit, up to $50/ER visit; no excess charge coverage.

The Three Best Plans for Most People in 2026

Plan G: Best Overall Coverage (Most Popular for New Enrollees)

Plan G is the gold standard for comprehensive Medigap coverage for people new to Medicare. After you pay the $257 Part B annual deductible, Plan G pays 100% of all Medicare-approved costs: hospital stays, surgery, doctor visits, outpatient procedures, skilled nursing facility coinsurance, and more. You also get Part B excess charge coverage (important in states like New York and California where many high-end specialists opt out of Medicare assignment) and 80% coverage of emergency healthcare outside the US.

2026 Typical Monthly Premiums for Plan G:

Your maximum annual out-of-pocket with Plan G in 2026: just the $257 Part B deductible, then nothing for covered services. This predictability is Plan G's primary advantage.

Plan N: Best Value for the Healthy (Second Most Popular)

Plan N covers the same major benefits as Plan G — hospital coinsurance, Part A deductible, 20% Part B coinsurance, skilled nursing coinsurance, foreign travel emergency — with two meaningful differences:

  1. Copays: Up to $20 per office visit and up to $50 per emergency room visit (waived if admitted)
  2. No Part B excess charge coverage: If your doctor doesn't accept Medicare assignment, you're responsible for up to 15% above the Medicare-approved rate

In exchange, Plan N premiums are typically $25–$50/month lower than Plan G — $300–$600/year less. This premium savings offsets the copays if you have fewer than 15–30 office visits per year and your providers accept Medicare assignment (most do).

Who benefits most from Plan N: Relatively healthy people who see doctors occasionally but want protection against major healthcare events. The lower premium is pure savings in years with few office visits; in bad years, the copays are a modest additional cost compared to the premium savings.

Plan G High Deductible: Lowest Premium, High Out-of-Pocket Ceiling

High-Deductible Plan G works like Plan G in all coverage respects but requires you to pay the first $2,870 (2026 amount) of Medicare cost-sharing before Plan G coverage kicks in. After meeting that deductible, you pay nothing for covered services.

Monthly premiums for HD Plan G run $30–$65/month — dramatically lower than standard Plan G. This plan makes financial sense for people who are generally healthy and want catastrophic protection at a minimal premium — similar in concept to a high-deductible health plan with an HSA during working years.

Plan G vs. Plan N: A Side-by-Side Comparison

FeaturePlan GPlan N
Monthly premium (age 65, avg.)$145–$175$110–$145
Part B deductible covered?No ($257/yr)No ($257/yr)
Doctor visit copay$0Up to $20
Emergency room copay$0Up to $50
Part B excess chargesCoveredNOT covered
Hospital coinsurance$0$0
Part A deductible ($1,632)CoveredCovered
Skilled nursing coinsuranceCoveredCovered
Best forFrequent care users, predictabilityOccasional care, cost-conscious

Medigap vs. Medicare Advantage: Which Is Right for You?

This is one of the most important health insurance decisions a person turning 65 makes. Both options fill Medicare's gaps — but very differently.

Medigap advantages: See any Medicare-accepting provider nationwide (no networks). Predictable costs — you know your maximum annual outlay. No pre-authorization requirements for covered services. Covers foreign travel emergencies (Plan G/N). No need to coordinate care through a primary care physician.

Medicare Advantage advantages: Lower or $0 monthly premiums (many plans have no additional premium beyond Part B). Often includes dental, vision, hearing, and fitness benefits Original Medicare doesn't cover. Drug coverage often built in (MAPD plans). Can be cost-effective for people who rarely use healthcare.

Medigap disadvantages: Higher monthly premium. No prescription drug coverage (need separate Part D plan). Switching from Medicare Advantage back to Medigap later is difficult — you'll face medical underwriting in most states.

Medicare Advantage disadvantages: Network restrictions (must use plan's network or pay out-of-network rates). Higher out-of-pocket maximums when you use care significantly ($3,500–$8,550 in 2026). Prior authorization requirements can delay or deny care. Plans can change their networks, formularies, and costs annually.

General principle: if you have significant ongoing health needs, travel frequently, or want maximum predictability, Medigap Plan G is usually the better choice financially when accounting for full cost of care. If you're generally healthy and primarily want low premiums with some ancillary benefits, Medicare Advantage may serve you well — but understand the risk of much higher costs if your health changes.

Enrollment: When and How to Sign Up

Medigap Open Enrollment Period (Most Important)

Your Medigap Open Enrollment Period (OEP) is a 6-month window that begins the month you turn 65 AND are enrolled in Medicare Part B. During this period:

This is the single most important enrollment window. Once it closes, you can be medically underwritten and denied coverage or charged significantly higher premiums based on health history (except in states with more protective rules like New York, Connecticut, Massachusetts, and a few others). If you delay Part B enrollment (because you have employer coverage), your Medigap OEP doesn't begin until you enroll in Part B.

Guaranteed Issue Rights (Special Enrollment Periods)

Outside the OEP, you have guaranteed issue rights (cannot be denied or charged more) in specific situations: losing employer-sponsored coverage, moving out of your Medicare Advantage plan's service area, your Medicare Advantage plan leaving the market, or losing Medigap coverage through no fault of your own. These situations trigger a 63-day Special Enrollment Period with guaranteed issue rights.

How to Find the Lowest Premium for the Same Plan

Because all Plan G policies are standardized and provide identical coverage, the only reason to pay more for one insurer over another is service quality — and Medicare Supplement companies all pay the same claims. Premium shopping is therefore critically important:

Check Your Medicare Eligibility and Options

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Frequently Asked Questions

What is the difference between Medicare Supplement and Medicare Advantage?
Medicare Supplement (Medigap) works alongside Original Medicare (Parts A and B) — you keep Original Medicare as your primary insurance and Medigap pays most or all remaining cost-sharing. You can see any doctor nationwide who accepts Medicare, with no networks or referrals. Medicare Advantage (Part C) replaces Original Medicare with a private plan that has network restrictions and typically lower premiums but higher out-of-pocket costs when you need significant care. Medigap has higher premiums but near-zero out-of-pocket costs for covered services after your deductible. The right choice depends on your health needs, budget, and how much you value provider flexibility.
What does Medicare Supplement Plan G cover in 2026?
Plan G covers: Part A hospital coinsurance and costs up to an additional 365 days after Medicare benefits are exhausted; Part A hospice care coinsurance; Part A deductible ($1,632 in 2026); Part B coinsurance (20% of approved costs); Part B excess charges (up to 15% above Medicare's approved rate, when providers don't accept assignment); skilled nursing facility coinsurance (days 21–100); and foreign travel emergency coverage (80%, up to plan limits). Plan G does NOT cover the Part B deductible ($257 in 2026). After paying that annual deductible, Plan G covers 100% of Medicare-approved costs — making your remaining out-of-pocket costs essentially $0 for covered services.
Is Medicare Supplement Plan G worth it in 2026?
Plan G is worth it for most people who prefer cost predictability and freedom to choose any Medicare-accepting provider nationwide. In 2026, typical Plan G premiums range from $120–$220/month depending on age, gender, tobacco use, and state — or $1,440–$2,640/year plus the $257 Part B deductible. In exchange, you pay nothing else for Medicare-approved services. For people with significant health needs — multiple specialist visits, hospitalizations, or ongoing treatments — the total annual cost of Plan G is often less than Medicare Advantage when you add up copays, specialist costs, and the out-of-pocket maximum risk under heavy use.
When is the best time to enroll in a Medigap plan?
The best time is during your 6-month Medigap Open Enrollment Period, which starts automatically the month you turn 65 AND are enrolled in Medicare Part B. During this window, insurers cannot deny coverage or charge higher premiums due to pre-existing conditions. After this window closes, you can be denied coverage or charged significantly more based on health history in most states. If you miss this window, there are limited Special Enrollment Periods — such as losing employer coverage or your Medicare Advantage plan leaving the market — that also provide guaranteed issue rights.
What is the difference between Plan G and Plan N?
Both Plan G and Plan N are popular choices in 2026. Plan G covers 100% of Medicare-approved costs after the $257 Part B deductible — no copays for doctor visits or ER visits. Plan N also requires the $257 Part B deductible but adds copays: up to $20 per office visit and up to $50 per emergency room visit. Plan N also does NOT cover Part B excess charges (relevant if your doctors don't accept Medicare's approved rates). Plan N premiums are typically $25–$50/month lower than Plan G. Plan N makes financial sense if you rarely visit doctors for routine care and your providers accept Medicare's approved rates without excess charges.

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