The Top 5 Medicare Supplement Plans (and How to Pick the Right One)

You know when you eat leftovers, but they’re not quite enough to fill you up, so you have to grab some chips, an apple, some cheese and peanut butter—oh, and three cookies—to really satisfy you?

That’s what a Medicare supplement plan (also called Medicare Supplement Insurance or Medigap) does. Medicare is like the leftovers—enough to give you some protein, but not really enough to fully meet your needs—and Medigap finishes the job.

All those Medigap plans with all those letters can be overwhelming, and maybe you’re wondering, Which one is actually worth the money?

What you really need to know is how to match the right supplement plan with your budget without overpaying for coverage you won’t use. Well, this article can help you do that. We’ve ranked the top five Medicare supplement plans and compared the two front-runners—and we’re even going to show you how to find your fit.

A Quick Refresher on Medicare (Before We Rank the Plans)

First, we’ll quickly go over Medicare—because if you don’t know what that is, understanding supplement plans will be a little difficult. (If you want more than a quick look, check out our deep dive, What Is Medicare and How Does It Work?)

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Medicare is health insurance run by the federal government for people 65 and older and those with disabilities. It’s divided into Parts A, B, C and D. Parts A and B together are known as Original Medicare.

• Part A is hospital insurance.
• Part B is medical insurance (it covers things like doctor visits and outpatient services).
• Part C is its own separate coverage called Medicare Advantage. It’s offered by private insurance companies and bundles Parts A, B and D together with a few other benefits and restrictions.
• Part D is drug coverage.

Medicare pays for a lot, but not everything. In addition to premiums, every time you use Medicare, you have deductibles (costs you pay out of pocket before Medicare kicks in) and coinsurance.

In 2026, Part A’s deductible is $1,736, Part B’s is $283, and Part D’s is no more than $615 per year.^3,4 Medicare Advantage (Part C) deductibles differ from plan to plan since it comes from private insurance companies. And remember that the government updates these numbers annually, so you’ll want to keep an eye on them.

The Top 5 Medicare Supplement Plans

What Are Medicare Supplement Plans?

Medicare supplement plans (Medigap plans) help pay for costs Medicare doesn’t cover—like coinsurance and deductibles. They supplement Original Medicare coverage.

What Is the Purpose of Supplement Plans?

Medicare supplement plans help cover the sometimes-high cost of deductibles and coinsurance—and with how high those can be, it’s a good thing they were invented! Private insurance companies offer Medigap plans to give you more control over how much coverage you have.

Medigap plans are lettered A through N (although plans E, H, I and J are no longer available), and each one works alongside Original Medicare (Parts A and B) slightly differently. Now, don’t get the lettered Medigap plans confused with the lettered parts of Medicare. They aren’t the same!

But Uncle Sam thought it’d be a good idea to name them the same way. To be honest, Uncle Sam is sounding a little like your senile old uncle who calls all your cousins the same name. But let’s keep it straight: Medicare Part A (hospital insurance) is not the same thing as Medigap Plan A, and so on.

Each lettered Medigap plan covers your out-of-pocket costs related to Medicare at a different level. Let’s look at how each plan differs.

Types of Medigap Plans

There are 10 different Medigap plans currently available and four more that are no longer available but still exist. Some of those 10 plans aren’t available to folks new to Medicare, some aren’t available in certain states, and not every insurance company sells every plan. So while every plan offers standardized coverage, plan availability is not the same across the board.

Take a look at the table below to see what kind of gap coverage each plan offers.

Looking at the benefits of Plan F, you can see why it’s been the most popular. But like we mentioned earlier, some plans aren’t available anymore—and F is one of them. Plans C and F are now available only to people who were eligible for Medicare before January 1, 2020, but didn’t enroll at that time, or to people who already have them. That’s because the government changed the rules, and now newer Medigap plans can no longer cover Part B deductibles. (Reason #500 why you should look for someone you trust to help you navigate this stuff.)

Benefits for Plans D and G depend on the purchase date. Anyone who bought one of those plans on June 1, 2010, or later will see different benefits from people who bought those plans more recently.⁷

Because it offers the most benefits, Plan G is becoming the most popular Medigap plan for folks new to Medicare. Except for your Part B deductible, Plan G covers all your Medicare-covered medical expenses.

Supplement Plan N is the second most popular Medigap plan for new Medicare enrollees. People with fewer medical needs tend to like it because it’s cheaper than Plan G while still offering a lot of coverage. It saves you money by letting you carry more risk for higher out-of-pocket costs. But if you don’t have a lot of medical needs, the risk could be worth it.

All the plans are standardized and offer the same basic benefits in every state except three: Massachusetts, Minnesota and Wisconsin (because they’re special).⁸

For example, in Massachusetts the Medicare supplement plans aren’t lettered. Your choices if you want a Medigap plan are the Core Plan, Supplement 1 Plan and Supplement 1A Plan. (Cough, cough—excuse us, we’re just choking on how boring those names are.) If you live in one of these states, check with your state or a Medicare expert to find out what’s available.

Plan G vs. Plan N: Which Should You Pick?

Medigap Plan G vs. Plan N

Here’s the bottom line: Choose Plan G if you’re looking for maximum coverage and simplicity. But go with Plan N if you’re healthy and want lower premiums.

What Are the Benefits of Medicare Supplement Plans?

Because they offer more flexibility, Medigap plans are usually a better fit than a Medicare Advantage plan for most people. Let’s look at all the benefits of a Medicare supplement plan.

Financial Protection

The main purpose of Medigap is to cover the out-of-pocket expenses you’re left with after Medicare has paid its share. You’ll have a yearly deductible to meet and coinsurance to pay every time you use a service like the hospital or doctor’s office. Depending on what plan you choose, Medigap will cover up to 100% of your Part A deductible and coinsurance costs.

Flexibility and Choice

One of the good things about Medigap is that you can go to any hospital, doctor or service provider that accepts Medicare. If you’ve got health insurance now (please say you do), you know you have to go to providers within your insurance company’s network. But unlike Medicare Advantage, with Original Medicare and a Medigap policy, you can go almost anywhere.

Travel Coverage

How does six weeks in Cabo sound? Or a cruise up the Seine? If you love traveling overseas, some Medigap plans cover unexpected medical needs abroad. Plans C, D, F, G, M and N will cover 80% of your costs for services normally covered by Medicare after you meet your deductible.

Medigap vs. Medicare Advantage: What’s the Difference?

Here’s the main difference: Medigap layers on top of Original Medicare to fill its gaps. Medicare Advantage replaces Original Medicare with a bundled private plan.

We mentioned that Medicare Parts A and B are Original Medicare, while Part C is Medicare Advantage. The big difference between Medigap and Medicare Advantage is that Medigap is added on to Original Medicare to create a full coverage plan, while Medicare Advantage is a separate plan that bundles Parts A, B and often D.

Medigap has many different options so you can customize it to your needs. Medicare Advantage is all one package, so you have less flexibility.

To be fair, in conjunction with Original Medicare, Medigap doesn’t have a yearly out-of-pocket maximum. And Medicare Advantage does, which is nice. But keep in mind, the reason Medigap doesn’t cap your out-of-pocket costs is because it’s designed to cover your Medicare-approved out-of-pocket costs (up to 100%)—which means no surprise bills for covered services.

With Medigap, you can go to any provider who accepts Medicare. But Medicare Advantage limits you to providers within a network. And Medicare Advantage folks who need to see a specialist are on their own if that specialist isn’t in the network.

If you have Medigap, you’ll potentially have up to three Medicare-related cards: one for Parts A and B, one for Part D, and one for Medigap. If you have Medicare Advantage, you’ll just have one card because it all comes in a bundle.

One of the attractive things about Medicare Advantage is how simple it sounds. Having everything all together sounds easier. And it probably is in some ways. But for most people, Medicare Advantage isn’t a good fit.

How Much Do Medicare Supplement Plans Cost?

Medicare supplement plan premiums vary widely. Plan G typically runs $100–300 per month, Plan N $80–200, and High-Deductible Plan G often under $50. Your exact cost depends on age, location, gender, tobacco use and insurer.

With Medigap, all plans that are titled with the same letter have the exact same coverage. But since they’re offered through private insurance companies, the price can vary. So it’s important to understand how the plans are priced (aka rated) and shop around for the best option.

Premiums

Medigap plans are a form of private health insurance, so you do have a premium. And remember, you’ll also pay a premium for Medicare Part B.

Insurance companies make the call on how much you’ll pay for your Medigap policy—and they use different methods to determine the number.

There are three ways companies calculate your premium or rates:

• Community-rated (aka not-age-rated)
• Issue-age-rated (aka entry-age-rated)
• Attained-age-rated

No matter which method the insurance company uses, your location, gender, marital status and lifestyle (think smoking, not whether you like to wear Omega watches or drive a convertible) also affect your rate.

Pricing on your available Medigap plans will depend on the provider. Shop around to make sure you’re getting the best deal. Remember, not all Medigap plans are available in every state.

Out-of-Pocket Costs

Let’s do a quick recap of what out-of-pocket costs Medigap plans generally cover.

Medicare supplement plans usually cover some or all of:

• Part A coinsurance hospital costs
• Part B coinsurance or copayment
• First three pints of blood
• Part A coinsurance or copayment for hospice care
• Skilled nursing facility care (not included in Plans A and B)
• Part A deductible (not included in Plan A)
• Foreign travel emergency (not included in Plans A, B, K and L)

Medigap plans don’t cover anything ineligible for Medicare like dental, vision, hearing aids or long-term care. They also only cover drugs or Part B deductibles for folks who were eligible for Medicare prior to January 1, 2020.

How to Choose the Right Medicare Supplement Plan

The right Medigap plan will meet your coverage needs (like foreign travel because you go to Italy every summer) and meet your budget.

Here are some questions to consider when trying to decide:

• Do you want maximum coverage? Get Plan G.
• Are you pretty healthy and want a lower premium? Get Plan N.
• Are you looking for the lowest premium and know your budget can handle a deductible? Get the High-Deductible Plan G.
• Were you Medicare eligible prior to 2020 and want everything covered? Get Plan F.

When you’re shopping around for a Medigap policy, it’s a good idea to keep track of everyone you talked to and the information on policies they gave you (or find someone like the RamseyTrusted^® advisors at Chapter to do that for you!).

How to Enroll in Medicare Supplement Plans

Eligibility Requirements

Not just anybody can get one of these amazing benefit plans. You must own at least 50 hectares of land, have a castle upon it, and be no further than seventh cousins to the king. Yes, we’re joking. But there are eligibility requirements.

You must be one of the following:

• 65 years old (or older)
• Getting disability benefits
• Diagnosed with amyotrophic lateral sclerosis (ALS)
• Diagnosed with end-stage renal disease (ESRD)

You also must be enrolled in Medicare Parts A and B, but it’s a big fat no if you’re enrolled in a Medicare Advantage plan. That’s not how Medicare enrollment works. You can sign up for Medigap the same month you enroll in Medicare Part B.

Here’s your “How to Enroll in Medigap” list:

1. Enroll in Original Medicare (Parts A and B).
2. Take note of your Medigap Open Enrollment Period (OEP), which begins the first month you enroll in Part B and extends for six months. (See the section immediately after this list for more info about the OEP.)
3. Work with a Medicare advisor to compare plans that best fit your needs.
4. Apply for Medigap through an insurer.

What Is the Medigap Open Enrollment Period?

The Medigap OEP runs for six months from the date you first enroll in Part B. If you enroll during that window, you can’t be denied coverage for preexisting conditions.⁹ That’s comforting! It’s your one opportunity to sign up for Medigap when you’re guaranteed coverage.

Once you’ve got a Medigap policy, the insurance company can’t cancel it even if your health changes (unless you don’t pay your premiums). But if you did not have other health insurance before enrolling and have a preexisting condition, the insurance company could delay your coverage up to six months.

After your Medigap OEP ends, you have no guarantee of coverage. You’re allowed to buy a Medigap plan any time of the year, but insurance companies can decide not to sell you one. And if they do, it’s often more expensive.

There is one exception to this, and that’s if you qualify for what’s called guaranteed issue rights based on your circumstances. An example would be if you lost your coverage for reasons outside your control, like your plan ended, or you moved and your plan doesn’t cover your new location. In these situations, insurers are still required to cover you.

Getting the right Medicare supplement plan is super important for making sure your retirement nest egg doesn’t suddenly get a hole blown in its side from medical expenses you thought were covered. And if you don’t believe us, listen to the story of Bonnie F., a member of our Ramsey Baby Steps Community on Facebook.

“My sister went to a licensed Medicare consultant,” Bonnie recalls. “She was trying to get off of a Medicare Advantage program and go back to her original supplement and now can’t get back on it. She was told she couldn’t go back to a supplement so she’s stuck. My sister’s disabled and needs a good plan. She does not have enough income for all these copays but her doctor does not like the Advantage plans. She never has any extra money for copays.”

That’s a sad story and a tough situation. But it doesn’t have to be that way!

Get Expert Help

If you feel like turning on a marathon of The Andy Griffith Show and zoning out instead of dealing with this insanity, how about this: Call up the folks at Chapter and let them guide you through it. They’re our only RamseyTrusted Medicare advisors! They know the right questions to ask and the plans to go with them—because they’re experts in Medicare. They’ll shop 24,000 plans to make sure you get the right one.

And they don’t just hand you a plan and wave you off into the sunset. They’ll check in every year to make sure your coverage is still working well for you, and they’ll help make adjustments if needed. If you’re confused about how to use your benefits, Chapter advisors are there to help. And it’s free! Chapter advisors don’t upsell you because Chapter makes money by getting you covered. So it’s kind of a no-brainer.

Get Medicare done—connect with Chapter!