Understanding Your Medigap Options in 2025
For seniors on Original Medicare, Medigap plans can provide essential financial protection by filling the “gaps” in coverage. These standardized plans help cover costs like copayments, coinsurance, and deductibles that Original Medicare doesn't. While the coverage for each lettered plan is identical across all providers, the premiums can vary significantly by company and location.
Why Plan G is a Popular Choice
Medigap Plan G is often considered the best choice for seniors who became eligible for Medicare on or after January 1, 2020. Since federal law prohibits new Medigap policies from covering the Part B deductible for these individuals, Plan G offers the next best thing. It covers nearly all other out-of-pocket costs, including:
- Medicare Part A coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are exhausted)
- Medicare Part B coinsurance or copayment
- First 3 pints of blood
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B excess charges
- Foreign travel emergency coverage (up to plan limits)
The appeal of Plan G is its predictable cost structure. After meeting the small annual Part B deductible ($257 in 2025), you will typically not face any other cost-sharing for Medicare-approved services for the rest of the year. This predictability is highly valued by seniors who want to avoid unexpected medical bills.
The Rise of Medigap Plan N
For seniors seeking a balance between comprehensive coverage and lower monthly premiums, Medigap Plan N has become a popular contender. While offering robust benefits, Plan N requires policyholders to pay a few out-of-pocket costs in exchange for its affordability. These include:
- A copayment of up to $20 for some office visits
- A copayment of up to $50 for emergency room visits (waived if admitted)
- The Medicare Part B deductible
- Part B excess charges (charges exceeding the Medicare-approved amount, which are not covered by Plan N)
Despite these small copays, Plan N can be a very cost-effective option, particularly for relatively healthy individuals who don't anticipate frequent doctor visits. The savings on premiums compared to Plan G can be substantial over the course of a year.
A Low-Premium, High-Deductible Alternative
For the most budget-conscious and healthiest seniors, the high-deductible version of Plan G (HDG) can be an excellent choice. This plan offers the same comprehensive coverage as the standard Plan G but with a much lower monthly premium. The trade-off is a high annual deductible ($2,870 in 2025) that must be met before the plan begins paying for benefits. This structure works best for those who have a healthy lifestyle and can afford the out-of-pocket costs if a major medical event were to occur.
A Comparison of Popular Medigap Plans (2025)
| Feature | Medigap Plan G | Medigap Plan N | High-Deductible Plan G |
|---|---|---|---|
| Premium | Higher | Lower | Lowest |
| Part B Deductible | Not covered ($257 in 2025) | Not covered ($257 in 2025) | Not covered (part of HDG deductible) |
| Part B Coinsurance | 100% covered | Covered, except for small copays | Covered after HDG deductible |
| Part B Excess Charges | 100% covered | Not covered | 100% covered after HDG deductible |
| Office Visit Copay | $0 | Up to $20 | $0 after HDG deductible |
| ER Visit Copay | $0 | Up to $50 (if not admitted) | $0 after HDG deductible |
| Annual Out-of-Pocket Max | None (predictable costs) | None | Yes ($2,870 in 2025) |
Factors to Consider When Choosing a Plan
Selecting the right Medigap plan is a personal decision that depends on several factors. Consider these steps to help you make an informed choice:
- Assess Your Health: Consider your current health status and any potential future medical needs. Do you have chronic conditions or anticipate frequent doctor visits? More comprehensive plans like Plan G can offer greater peace of mind.
- Evaluate Your Budget: Look at your monthly budget to determine how much you can comfortably afford for premiums. Weigh the cost of lower premiums (Plan N, HDG) against the risk of higher out-of-pocket costs.
- Check Your Eligibility: If you became eligible for Medicare before January 1, 2020, you may still be able to purchase the older Plan F, which covers the Part B deductible. Otherwise, Plan G is the most comprehensive option.
- Compare Providers and Prices: Because benefits are standardized, the best plan for you might simply be the one with the lowest premium from a reputable insurer. Different insurance companies charge different rates, so it’s essential to compare quotes in your area. Use resources like the official Medicare website to start your search.
- Review the Coverage Details: Understand exactly what each plan covers and your potential out-of-pocket responsibilities. For example, Plan N's small copays and lack of excess charge coverage might be a dealbreaker for some.
A Final Word on Plan F for Existing Policyholders
For seniors who enrolled in Medigap before 2020, Plan F remains a viable option. It is the most comprehensive plan available, covering all costs not paid by Original Medicare. However, since it is no longer available to new enrollees, the pool of policyholders is shrinking. This could potentially lead to higher premiums over time as costs are spread among a smaller group. Many existing Plan F policyholders find that switching to Plan G can offer significant savings with minimal change in coverage, given that the Plan B deductible is typically small compared to the premium difference.
Making Your Final Decision
For most seniors newly eligible for Medicare in 2025, Plan G is the gold standard for comprehensive coverage and predictable costs. Plan N is a strong alternative for those willing to accept small copayments for lower premiums. The high-deductible Plan G is ideal for healthy seniors seeking the lowest possible premiums. The best choice ultimately depends on your individual health status, financial situation, and tolerance for risk.
For more detailed information and to use the official plan finder tool, visit the Medicare Plan Finder online.
