What your Medigap coverage really costs.
Add up your Part B premium, your Medigap plan and your Part D drug plan, then compare the whole Medigap route against a Medicare Advantage plan on estimated annual cost. All figures are 2024 estimates.
Original Medicare + Medigap
Plan G covers nearly every gap, so your out-of-pocket is usually just the 2024 Part B deductible of $240.
Advantage plans often have a $0 premium but your yearly out-of-pocket can climb to the 2024 cap of about $8,850 in a heavy-use year.
Which route costs less for you?
Medigap vs Advantage as your care use grows
Your Medigap cost at a glance
Annual cost by route at several out-of-pocket levels
Medigap out-of-pocket stays low because the plan covers the gaps. Advantage out-of-pocket rises with how much care you use, up to the 2024 cap.
| Out-of-pocket in the year | Medigap route | Advantage route | Lower cost |
|---|
Medigap, explained
What Medigap Covers
Fills gaps in Original Medicare: Part A deductible ($1,676), Part B coinsurance (20%), foreign emergencies. Plan G is most popular, covers all gaps except Part B deductible.
Medigap vs Medicare Advantage
Medigap: traditional Medicare + supplement, see any provider, higher premium. MA: replaces Medicare, network-restricted, lower premium often $0. Tradeoffs: freedom vs cost.
Premium Increase Reality
Medigap premiums increase 3-7% yearly. Plus age-related increases (some plans). 20-year retirement at 5% = double premium. Plan for $300-400/mo in later retirement years.
Open Enrollment Window
6 months from your 65th birthday + Medicare Part B enrollment. Guaranteed issue, no medical underwriting. After this window, insurers can deny or charge more based on health.
Common questions
When can I buy Medigap?
Best: first 6 months on Medicare Part B (around age 65). No medical underwriting. Later = potentially denied or rate-up.
Plan G vs Plan F vs Plan N?
Plan F (most coverage, not available to new Medicare 2020+). Plan G (Plan F minus Part B deductible). Plan N (lower premium, some copays). Plan G most popular now.
Does Medigap cover prescriptions?
No, that's Part D, separate plan. Get both for complete coverage.
Can I switch Medigap plans later?
Yes but requires medical underwriting. Can be denied. Annual review of premium is worth it but switching is harder.
Medigap vs Medicare Advantage which wins?
Medigap usually wins long-term IF you can afford premiums and value provider freedom. MA wins for tight budgets and acceptance of network restrictions.
Estimates for planning only, based on 2024 figures. Actual costs depend on your ZIP code, the specific plans you choose, your health, premium increases over time and how much care you use. Confirm every plan detail with the insurer and Medicare before you enroll.