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Medicare Supplemental Insurance – Is It Worth It?

Medicare Supplemental Insurance, or Medigap, is an additional policy to cover the gaps in Original Medicare.

It helps lower your out-of-pocket costs during the year but comes with a price. Not only would you have an additional premium for the plan, but you would also want to purchase a drug plan.

Many beneficiaries wonder if a Medicare Supplement plan is worth the money. The truth is, it all depends on the individual and what your budget and health needs are. Boomer Benefits is a Medicare broker who can help you explore your options and determine what Medicare plans are right for you.

Medicare comprises Part A and Part B, offering coverage for hospital stays, skilled nursing facility care, hospice care, doctor visits, outpatient care, preventive services, medical equipment, and more. The federal government provides these two parts of Medicare, which are the same for every beneficiary.

However, there are notable gaps, including deductibles, copayments, and coinsurance. If you had Medicare Parts A and B only, you’d be responsible for meeting the Part A and B deductible before Medicare pays a portion of the cost. You would be responsible for 20% of the cost for Part B services after the deductible is met.

It’s important to understand there is no cap to your costs with Original Medicare.

Coverage Offered by Medicare Supplemental Insurance

Medigap plans come in standardized levels (A, B, C, D, F, G, K, L, M, N), each catering to different coverage needs. Generally, they offset Medicare’s out-of-pocket costs like deductibles, copayments, and coinsurance. Each plan covers these gaps differently. Some may cover certain services at 100% or 50%. Some plans may even extend coverage to extras like foreign travel emergencies.

It’s important to know all these options so you can choose the right plan for your needs.

Cost Considerations

The cost of Medigap varies based on factors like the chosen plan, location, age, and, potentially, health status. Typically, you’ll pay a monthly premium in addition to your Medicare Part B premium. Prices span a spectrum, so comparing when shopping plans is necessary to ensure you find the most cost-effective option.

Pros and Cons

Pros of Medigap include:

  • Predictable costs.
  • Broader coverage beyond Original Medicare.
  • Freedom to select healthcare providers.

However, drawbacks encompass an additional premium and premium increases.

Additionally, if you don’t enroll during your Medigap Open Enrollment window, you may need to go through underwriting to get a plan or change plans in the future. This means you could be denied due to pre-existing conditions.

Determining Worth

The worth of Medicare Supplemental Insurance hinges on individual healthcare needs and financial circumstances. Medigap might be worth it if you prioritize cost predictability and desire broader coverage. Conversely, it might not be necessary if you’re budget-constrained or already covered comprehensively through Medicare Advantage.

Advantage plans work differently from Medicare Supplement plans. They tend to have lower monthly premiums but copays for services, so you pay when you use the plan. This means your costs aren’t always predictable, but you should never pay more than the plan’s maximum out-of-pocket limit.

Comparing the Benefits

One significant benefit of Medigap plans is their flexibility in choosing healthcare providers. With most Medigap plans, you’re not limited to a network of providers, giving you the freedom to see any doctor or specialist who accepts Medicare. This flexibility can be particularly valuable if you have a preferred healthcare provider, frequently travel, and need medical care away from home.

Another advantage of Medigap plans is the predictable costs they provide. With Original Medicare alone, your out-of-pocket expenses can vary widely depending on the services you need, and there is no cap on your costs.

Medigap plans help to streamline these costs by covering or reducing many of the expenses that Medicare doesn’t pay for, like deductibles, copayments, and coinsurance. This can make it easier to budget for healthcare expenses and provide peace of mind, knowing that you won’t face unexpected medical bills.


By offering broader coverage and predictable costs, Medicare Supplemental Insurance can provide significant benefits for those looking to enhance their healthcare coverage. However, it’s essential to weigh the potential drawbacks, such as higher premiums and limited enrollment periods, against the advantages to determine if it’s worth the investment for your unique situation.

In conclusion, Medigap plans can be valuable for ensuring comprehensive healthcare coverage and peace of mind when managing medical expenses. However, it’s crucial to evaluate your options carefully, considering factors like cost, coverage needs, and personal preferences, before making a decision. Consulting with a licensed insurance professional can provide valuable guidance in navigating the complexities of Medicare Supplemental Insurance and determining the best course of action for your healthcare needs.

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