Top 3 Medicare Supplement Plans for 2024

Since its inception in 1965, Medicare has provided affordable healthcare to over 58 million Americans. As the baby boomer generation reached retirement age, more individuals became eligible for Medicare coverage. In 2023, Medicare expenditures totaled approximately $709 billion in benefits. The program covers services like lab tests and durable medical equipment, including nebulizers, dialysis machines, and mobility aids, under original Medicare (Parts A and B).

However, original Medicare offers limited coverage, often leaving beneficiaries with significant out-of-pocket costs. To bridge this gap, many opt for Medicare supplement plans, known as Medigap. These plans, regulated by the government, offer additional benefits uniformly across most states, except for Wisconsin, Massachusetts, and Minnesota. The benefits and premiums vary depending on the plan (A through N) and the insurance provider.

Medigap plans supplement original Medicare and are purchased alongside Parts A or B. Beneficiaries select a plan based on their coverage needs and budget. Here’s a brief overview of the top three Medicare supplement plans this year:

Medicare Supplement Plan N
Known for its low premiums, Plan N involves small copayments for ER visits and doctor appointments—typically around $20 for office visits and $50 for emergency visits. The plan covers the Medicare Part A deductible and offers full coverage after day 21 of skilled nursing care, up to 100 days. It also provides emergency medical coverage when traveling abroad.

Medicare Supplement Plan G
If you desire more comprehensive coverage than Plan N, Plan G is ideal. It includes all of Plan N’s benefits, plus coverage for Medicare Part B excess charges and foreign travel emergencies. Unlike Plan N, there are no copayments for doctor or ER visits, and it covers the additional charges doctors may bill beyond Medicare’s approved rates.

Medicare Supplement Plan F
Plan F offers the most extensive coverage, including Part B excess charges and the Part B deductible. However, it comes with higher premiums, which may be costly for some. An alternative is the Medicare Supplement Plan F High Deductible, which features a substantial deductible (around $2,300) but lower monthly premiums. Benefits kick in after meeting this deductible.

Choosing the right Medigap plan can significantly reduce healthcare expenses. When selecting a plan, consider copayments, deductibles, premiums, and your state’s regulations. Premium costs tend to increase with age. To secure lower premiums and better acceptance odds, it’s advisable to enroll within the six-month open enrollment period, starting the month you turn 65, reducing the likelihood of denial due to health issues.