How much will Medigap plans cost in 2021?

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Medicare Supplement plans, also known as Medigap, help to cover the costs left over after Medicare pays its share. Medicare covers around 80 percent of expenses for hospital and medical care. You are still responsible for the Part A and Part B deductibles, premiums, copayments, and coinsurance. Medigap plans cover some of  these Original Medicare costs to varying extents. Six of the available plans also offer 80 percent coverage for foreign travel emergency care, which is critical for travelers because Medicare offers virtually no help paying for healthcare outside of the United States. People add Medigap plans for a number of reasons, and the benefits differ based on your healthcare needs and financial flexibility.

2021 Medigap Costs

Each plan varies in the premiums it charges. You pay your Medigap premiums in addition to your Part A and Part B premiums. Costs for the same plan type will vary from state to state and across the country, but trends stay the same. The plans with the highest premiums are C D, F, and G. Plans C and F are no longer available to people new to Medicare as of 2020, but if you already had one of those plans you can keep it. 

The lowest premiums come with the high-deductible options for Plan F and G. These are not available in every state, and with the low premiums come high deductibles of $2,370 in 2021. Until you meet that deductible, you receive no coverage (no help in paying expenses for Part A and Part B out-of-pocket costs). Plan F and Plan G are the most comprehensive Medigap plans in terms of coverage, which is why their premiums are normally high. These high deductible plans are a way for people with few medical expenses to save on premiums. If they can afford the deductible in the event of an emergency, the promise of full coverage for that affordable price can be well justified.

Plans K and L have out of pocket maximums, which have been adjusted for 2021. The 2021 out of pocket maximum for Plan K is $6,220. Plan L has an out of pocket maximum of $3,110.

Medigap Coverage

Medigap plans cover some of the following benefits:

  • Part A hospital costs and coinsurance
  • Part B copays and coinsurance
  • Blood (the first three pints)
  • Part A hospice care
  • Skilled nursing facility care
  • Part A deductible
  • Part B deductible (covered by Plans C and F, which are not available to new Medicare beneficiaries)
  • Part B excess charges (bills above the Medicare-approved amount)
  • Foreign travel emergency (covered at 80 percent by Plans C, D, F, G, M, and N)

If you’re looking for additional coverage, a Medicare Supplement Plan may be right for you. Give Bobby Brock Insurance a call today to discuss your options further.

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Justin Brock

President & CEO of Bobby Brock Insurance