4 Steps to Choose a Medigap Policy

Choosing the right Medigap policy for you takes only a few key steps. You'll need to find the right fit by identifying your current and future health needs, weighing costs and looking at the quality of Medigap companies.

1. Identify your coverage needs

Medicare Supplement plans do not cover medical services or procedures like normal health insurance does. Instead, they help you manage the roughly 20% of medical costs that Medicare does not pay for.

Deciding on your coverage needs comes down to how easily you can handle a major expense, how likely you are to seek care and what your budget can handle. For example, if you have a good amount in savings, you're in good health and you'd like to save on your monthly costs, you should look at Plan K, which offers low coverage levels but costs significantly less than other Medigap plans.

However, if you have ongoing health issues and you travel out of the country often, you should consider Plan G since it has high levels of coverage including up to 80% of your foreign emergency medical costs.

Although most states let you choose from 10 different Medicare Supplement policies, three plans make up over 80% of all Medigap policies sold nationwide.

Best Medicare Supplement plans for new enrollees with coverage details

Consider your current and future health needs before choosing a Medigap plan

If you have an ongoing condition, you should look at a policy that provides high levels of coverage like Medicare Supplement Plan G or N. However, if you're in good health, and you don't anticipate major medical costs in the future, you may be better off buying a less expensive Plan K policy.

Switching Medigap plans in the future may open you up to higher rates. That's why it's usually a good idea to pick a plan that works for you now and in the future. If your family has a history of health problems, or if you have a reason to believe you'll need more coverage in the future, you should opt for more coverage with Medigap Plan G or N.

2. Look at plan cost and quality

Price and customer service quality are the only factors you should consider when choosing between Medigap companies because coverage is the same no matter which you pick. That means two different companies may charge different prices while providing the same coverage.

Companies may offer cheaper plans for a few reasons. For example, some companies are more efficient than others. However, companies that have more expensive plans also often offer better customer service and faster claims processing.

You should consider companies like AARP/UnitedHealthcare and Mutual of Omaha if customer service is a high priority for you. These companies tend to receive fewer complaints than average.

On the other hand, companies like typically provide cheap plans but worse customer service.

3. Find discounts and cost savings

Before you buy a Medicare plan, you should see if you can lower your costs even further by taking advantage of discounts and savings programs. Some insurance companies offer bundling discounts if you have another kind of coverage with it.

Some companies have discounts for paying online or setting up autopay. For example, Humana will take $2 off your monthly rate when you set up an automatic payment through your bank or credit card.

4. Get in touch with a broker or provider

Once you've identified the plan and provider you want, you should get in touch with a local Medicare Supplement broker, or you can buy a plan directly from an insurance company.

Historically, Medigap brokers played a bigger role in the sales process. In the pre-internet era, they were essential for consumers who wanted to compare Medicare Supplement plans. Nowadays, they're less necessary for consumers who know what they want and who aren't afraid to navigate the buying process on their own.

You may choose to use a Medicare Supplement broker if you want to discuss your needs with a qualified professional. Brokers typically have an in-depth knowledge of the products they're selling.

Some insurance companies don't let you buy Medigap policies directly through their website. You may have to call a broker or agent over the phone. If you wait until after your initial enrollment period to buy a Medigap plan, you may have to fill out a health questionnaire and possibly pass a physical in order to qualify for a policy.

Frequently asked questions

Sources

Medicare Supplement plan details and rules are from Medicare.gov. Medigap policy provider recommendations are based on plan costs, and complaint data is from the National Association of Insurance Commissioners (NAIC).