This can be a real debatable topic, definitely. The best Medicare Supplement plans to review in 2024. You can be pretty sure no matter what I say as I update this article today, someone will figure out a way to criticize what I author. Why didn’t I mention this plan or that plan.
Starting out in the “Medicare” business nearly 25 years ago I’d like to think I have creditable experience worth considering. I’ve talked to more than a fair share of seniors in that time as well. You can say I have a lot of “real world” feedback and factual information about Medicare and Medicare Supplements to share. So, with that said, onto our review of the best Medicare Supplement plans to take a close look at.
Original Medicare and a Med Supp
First thing to remember about any Medicare Supplement plan… If not already enrolled in Original Medicare, you will need to have the intention to switch to Original Medicare to appy for coverage. Secondly, you must have both Parts A and B of Original Medicare.
Please understand and take note… Medicare Advantage (Part C) is not Original Medicare. It is a subsidized private plan offered as a similar, but alternative only by a private insurance carrier. Your Medicare premiums are actually sent to the private company and not retained by the government.
Medicare Supplement, Medigap Plans do not work with Part C, Medicare Advantage.
Sometimes you will hear the slang term Med Supp used to describe a Medicare Supplement. These terms all represent the same thing.
With Original Medicare, approved claims will be paid to your provider at 80% of their approved amount. The remainder 20% is your responsibility. What most people do it take out a Medicare Supplement sold by many health insurance companies to pay the remaining 20% of those Medicare approved charges. Remember, the key here is…Medicare must approve the claim or no Medicare Supplement will pay anything regardless the plan benefits. The best Medicare/Medigap Supplement policy is going to pick up more of the 20% than an inferior plan. Plans are designed by Medicare not insurance companies.
All Medicare Supplements have a plan letter label from “A to N.” We suggest Plan F, G and N.
Why? The benefits and feedback from our clients.
If you want the 20% of Medicare approved claims paid for, certain plans denoted by their plan letter will better to protect your interests.
The name of the insurance company has nothing to do with how good a Medigap plan is or pays your healthcare claims.
Medicare Supplement Coverage Is Standardized
When I first started helping folks obtain Medicare Supplement policies back in the late 90’s, Medicare had just simplified the actual comparison between Medicare supplement policies by creating uniformity in the industry.
In 1992, Medicare Supplemental coverage was standardized. All offerings had to conform to specific Medicare approved design. Since 1992, Medicare Supplemental plans are identical from company to company based on the standardized plan letter (A-N) mentioned earlier.
By doing this, as a Medicare beneficiary, you know exactly what you are going to get for your money regardless of the insurer’s name. Medicare took the guessing or fear of changing from one insurance company to another out of the equation. An apples to apples comparison was made very simple.
In providing you with the best Medicare Supplement plans review, we just don’t want to make it about the plan letter either. While “standardization” and plan letters allow an apples to apples comparison, what you should know is that the premiums from company to company can vary, even drastically.
So, why is this you ask?
There are a few different reasons. Most are beyond the scope of this post. The easiest to understand is that some insurance carriers just have more rigorous underwriting standards. In other words, they are pickier about who they will take based on their particular health questions. As a result, the carrier can expect a lower claims experience on their particular Medigap policies. This can transfer into a lower cost for you in the short and/or long term. For example, qualifying for coverage with AARP United Healthcare is a lot easier than qualifying for a policy with Aetna or Mutual of Omaha.
Guess which one of those carriers is the most expensive as a general rule?
The Best Rated Medicare Supplement Plan Is?
While “best” is a relatively loose term, there are some Medigap plans that just stand out. Some of these plans have been well rated by seniors for years. Most people on Original Medicare will have one the 3 I’m about to reveal to you, right now.
Plan F, The Top Of The Line Medigap Plan
Plan F for years was the most popular plan and touted as “the best.” It is fully comprehensive in coverage and picks up all your Medicare approved healthcare bills and offers no work on your part. All deductibles and co-payments required by Medicare itself are covered by the plan. As long as Medicare approves your providers medical claim, Plan F covered 100% of remaining charges. Problem is…you pay a good deal extra to have all the administrative work done.
Unfortunately, Plan F is no longer available to people who were not eligible for Medicare prior to January 1, 2020. For those who are grandfathered in prior to that date, the Plan F will still be available whether you have the Plan F or not.
The Plan F could involve higher rate increases over time due to an aging group of seniors.
Why?
Younger Medicare beneficiaries will not be allowed into the plan any longer. Younger people are historically “healthier” which helps keep expenses lower for the insurance company. Lower expenses to them means lower rate increases for those policyholders in the specific plan.
While certain states actually restrict insurers from raising premiums on one particular Medigap plan (Plan F in this case), it is something to be mindful of especially if on a smaller, fixed income.
The G Plan…Best Alternative for Medicare Supplemental Coverage?
Plan G has become much more popular in recent years. A Medicare Supplement review of the top plans would be incomplete without this one.
Since Medicare announced that Plan F would be unavailable to those turning 65 as of 1/1/2020, most reputable agents have seen its value.
Personally, Plan G has been one of my top two Medicare Supplements recommendations for nearly 25 years. It is much more cost effective and it earned the “best value seal” from this office a long time ago.
My friend and now deceased associate/co-owner of this company, Ken Craig carried Plan G on himself thru his Medicare years.
What does that tell you?
It has always delivered more affordable premiums and near top flight coverage for seniors. You just plain “get more out” of a Plan G than the Plan F for the cost of coverage.
Plan F just offers a more convenience but at a considerably higher cost. As of January 2024, you will have to pay $240 dollars to Medicare for the Part B annual deductible for all outpatient services with Plan G. After that, all your Medicare approved claims will be paid in full.
If there is a downside to the Plan G in our review, I would say it does have potential for greater rate increases over time for a couple reasons. However, this would be something to speak to a seasoned and indepedent agent/broker to elaborate on.
If you are new to Original Medicare, this is the most benefit rich policy you can purchase.
Last but not least… Medicare Supplement Plan N.
This is the most cost effective supplement to seriously consider in 2024. While there are potential co-payments for outpatient visits, the coverage is still very good protection from high out of pocket expense.
Remember, you must pay the first $240 (in 2024 ) which is the Part B deductible for your outpatient care such as…your doctor, physical therapy (for example) each year. In addition when insured with a Plan N, you will also have to a $20 co-payment for these types of visits each time.
A trip to the ER, could result in a $50 co-payment per visit if you are not admitted to the hospital.
After satisfying all the above, Plan N will pick up any other Medicare approved amount unless the outpatient provider does not accept Medicare as payment in full.
By law, those particular providers may charge up to 15% additional. While the vast majority of providers accept Medicare “Assignment” a small amount do not. This can even include ambulance services, doctors office, PT or Oxygen providing companies.
With that said, it is not too often that “Part B Excess Charges” are experienced. Over 90% of Medicare participating doctors accept the Medicare approved amount as payment in full. Just be mindful, that excess charges are possible with the N Plan.
Now, question yourself if you want protection against “part b excess charges exposure?” Are you ok with paying $20 co-payments for every visit?
If you don’t like the sound of this, this is where you step away from the Plan N. It is not the best Medicare Supplement in this review for your comfort. Your solution is going to be either Plan F or G.
Just be mindful, Plan N has a considerably lower premium and lower historical premium increases over time.
Two Last, Sometimes Hidden Gems…High Deductible Plan F and High Deductible Plan G
Ok, this one is a bonus, but they are not for everyone. Depending on where you live… coastal areas, Florida, New York are prime areas to take a good look at the rates on the Plan F High Deductible of HD-G. Sometimes these can be good options, especially for those who have a good health history and a solid rainey day fun set aside. In 2024, the “upfront deductible” you pay before supplemental benefits “kick in” is $2800. Why might a high deductible plan be attractive? Well, the very large premium savings that can offset the high deductible particularly over a course of years. The premium savings can help you “self insure” the high deductible keeping the money in your pocket versus the insurance companies coffers. If you have had “good health” this may be a strategy to hang onto more of your money rather than paying out to an insurance company.
Final Thoughts On The Best Medicare Plans
Is Medicare Plan G better than Plan F? No, but it currently is a better value financially speaking.
These two plans are clearly “the best” in terms of benefits. Plan F comes at a cost…for first dollar coverage and pure convenience. Expect to pay for add convenience when comparing the two.
What Medicare Supplement plan do I need as a senior…
What are your needs, wants and budget? How much are your willing to pay each month for convenience and additional peace of mind? How much out of pocket are you willing to risk?
If an actual poll was taken of the seniors I have worked with over the years and by the shear numbers of Plan F, Plan G and Plan N that have been purchased across the country, the best rated Medicare Supplement plans have just been reviewed for you here today.
Even by strict numbers, rather than just opinions of many seniors, the top 3 Medicare Supplement plans in order are the Plan F, Plan G and Plan N.
Remember, it is the plan letter that defines the limitation of your Medicare bills.
No insurer pays better than another.
It is strictly a function of the Medicare Supplement plan you select, not the insurance company offering it. Medigap coverage is very regulated by both the state and federal government levels.
All plans were standardized in 1992 and are strictly regulated by the government to assure seniors of their coverage and aid in making the best decision for their healthcare needs.
With the new MACRA laws that took effect on January 1, 2020, newly eligible seniors lost a couple options to choose from.
The new law affects the availability of both Plan C and F to new Medicare recipients while also requiring newer guaranteed issue provisions for qualified individuals to either Plan G and Plan D.
We are suggesting taking a hard look at Plan N for the long run if your budget is very tight. The lower cost and limited out of pocket risk versus the comprehensive coverage of the G Plan has always been its strength.
Plan G has really become the new “BMW” as of January 1, 2020 for those turning 65 or entering Medicare eligibility.
If you are still not sure you understand your Medicare options, you might want to go here to get up to speed on how your Medicare choices affect you.
While these plans may still be the best rated Medicare supplement plans, there are underlying factors which may make one better for you than another. It is really a personal matter.
Make sure you are working with a Medicare specialist when trying to obtain coverage. Getting an independent health insurance broker is key to finding the best Medicare Supplement for your needs and coverage goals.
Further, the lowest price on a Med Supp does not mean a good deal for you long term. Rate increases are a part of life with Medicare and Medigap policies. Whether you are turning 65 pretty soon or feel you are being overcharged by your current insurance company and need a change, working with a seasoned specialist who knows the market can offer optimal service for you.
Hope our review of the best Medicare Supplement plans has been of value. As always, feel free to comment below.
If you have any further questions or if we can be of additional assistance, don’t hesitate to call. We are here to help. 269-244-3420