What's the Best Medicare Supplement for Seniors? A 2025 Guide

According to the National Council on Aging, approximately 17% of Medigap beneficiaries spend more than 10% of their income on healthcare costs. Understanding what's the best Medicare Supplement for seniors is crucial for managing these expenses and protecting your financial health in retirement. While the "best" plan depends on your individual needs and budget, the most popular options include Plan G and Plan N, which offer distinct coverage and cost structures.

Quick Summary

Comparing Medicare Supplement plans like Plan G and Plan N involves weighing comprehensive coverage against lower premiums and cost-sharing. Choosing the right Medigap policy requires evaluating personal health needs, budget, and travel habits. Your Medigap choice is a key factor in managing out-of-pocket medical expenses.

Key Points

• Plan G is Most Comprehensive for New Enrollees: For those new to Medicare in 2025, Plan G offers the most comprehensive coverage, paying for nearly all Original Medicare out-of-pocket costs after the annual Part B deductible.

• Plan N Offers Lower Premiums with Cost-Sharing: Plan N features lower monthly premiums than Plan G, but beneficiaries are responsible for certain copayments for doctor's and emergency room visits and Part B excess charges.

• High-Deductible Plan G is Budget-Friendly: For lower monthly costs and protection against catastrophic events, the High-Deductible Plan G requires you to meet a significant annual deductible before coverage begins ($2,870 in 2025).

• Benefits are Standardized: All Medigap policies of the same letter (e.g., Plan G) offer the exact same benefits, regardless of the insurance company. This means you should shop based on price and carrier reputation.

• Enroll During Your Open Enrollment Period: The best time to enroll is during your 6-month Medigap Open Enrollment Period to avoid medical underwriting and secure the best rates.

• Evaluate Your Health and Finances: Your decision should be based on your health status, budget, tolerance for risk, and how often you travel, as these factors determine which plan provides the best value.

Understanding Your Medigap Options in 2025

Medicare Supplement Insurance, or Medigap, is sold by private companies to cover the "gaps" in Original Medicare (Part A and Part B), helping pay for out-of-pocket costs such as deductibles, copayments, and coinsurance. Since January 1, 2020, Medigap Plans C and F are unavailable to new Medicare enrollees, making Plan G and Plan N the most comprehensive options for those newly eligible. While benefits for each plan letter are standardized across insurers, premiums can vary.

Comparing Popular Plans: G, N, and High-Deductible G

• Medigap Plan G: This is a comprehensive option for new enrollees, covering all Original Medicare out-of-pocket costs except the annual Part B deductible. It offers predictable costs after the deductible is met.
• Medigap Plan N: Offering lower premiums than Plan G, Plan N is suitable for healthier individuals. It has similar benefits to Plan G but requires copayments for some doctor visits (up to $20) and ER visits not leading to inpatient admission (up to $50). Plan N does not cover Part B excess charges.
• High-Deductible Plan G: This plan has the lowest premiums and a high annual deductible ($2,870 in 2025). It's a good choice for those wanting a safety net against major medical events.

Factors to Consider When Choosing

Selecting a Medigap plan involves assessing your personal needs:

• Health Status and Predictability: Consider Plan G for chronic conditions for predictable costs. Plan N might be better for those in good health due to lower premiums.
• Budget vs. Risk Tolerance: Higher premiums for Plan G offer fewer out-of-pocket costs. Plan N has lower premiums but requires some cost-sharing. High-Deductible G offers minimal premiums but high upfront costs before coverage.
• Travel and Lifestyle: Many Medigap plans, including G and N, cover foreign travel emergencies. Medigap also works with any Medicare-accepting doctor or hospital nationwide.

Comparing the Top Medigap Plans for New Enrollees (2025)

Feature	Medigap Plan G	Medigap Plan N	High-Deductible Plan G
Availability	Available to all Medicare-eligible individuals.	Available to all Medicare-eligible individuals.	Available to all Medicare-eligible individuals.
Monthly Premium	Higher than Plan N, but more predictable.	Lower than Plan G, but requires cost-sharing.	Lowest premium of the three options.
Part A Deductible	Covered 100%	Covered 100%	Covered after meeting the annual deductible ($2,870 in 2025).
Part B Deductible	Not covered. You pay this first.	Not covered. You pay this first.	Covered after meeting the annual deductible ($2,870 in 2025).
Part B Coinsurance	Covered 100%	Covered 100%, except for potential copays.	Covered after meeting the annual deductible ($2,870 in 2025).
Copayments (Doctor Visits)	$0	Up to $20	$0 (after meeting the annual deductible).
Copayments (ER Visits)	$0	Up to $50 (if not admitted)	$0 (after meeting the annual deductible).
Part B Excess Charges	Covered 100%	Not covered.	Covered after meeting the annual deductible ($2,870 in 2025).
Foreign Travel Emergency	Covered (80% up to plan limits)	Covered (80% up to plan limits)	Covered (80% up to plan limits, after foreign travel deductible).
Annual Out-of-Pocket Cap	No annual cap	No annual cap	Yes, the $2,870 deductible is the cap (plus premiums).

Key Steps to Enrollment and Finding the Right Plan

1. Time Your Enrollment: Enroll during your 6-month Medigap Open Enrollment Period starting when you turn 65 and have Part B for guaranteed issue rights. Medical underwriting may apply later.
2. Compare Costs: Since benefits are standardized, compare premiums from multiple insurers like AARP/UnitedHealthcare, Mutual of Omaha, and Anthem.
3. Use Official Resources: Consult the Medicare website for a plan comparison chart or contact your State Health Insurance Assistance Program (SHIP) for free guidance.

Conclusion: Choosing the Right Policy for Your Needs

Deciding what's the best Medicare Supplement for seniors depends on your health, finances, and risk tolerance. Plan G is ideal for comprehensive coverage and predictable costs. Plan N suits healthier individuals seeking lower premiums and willing to accept some cost-sharing. High-Deductible Plan G is a low-premium option for catastrophic coverage. Enroll during your open enrollment period to avoid underwriting. Utilize available resources to compare plans and make an informed decision for financial security.

Centers for Medicare & Medicaid Services

Frequently Asked Questions

What is the difference between Medigap and Medicare Advantage?

Medigap is supplemental insurance that works with Original Medicare (Parts A & B) to cover out-of-pocket costs. Medicare Advantage (Part C) is an alternative to Original Medicare, offered by private companies, that bundles Part A, Part B, and often Part D coverage into one plan, usually with a restricted network of doctors.

Is Plan G available to everyone?

Yes, Plan G is available to all Medicare beneficiaries who are eligible. It is the most comprehensive option for those who first became eligible for Medicare on or after January 1, 2020, as they cannot enroll in Plans C or F.

Does Plan N cover all my doctor's visits?

Plan N covers most of your Part B services, but you will have to pay a copayment of up to $20 for some office visits and up to $50 for emergency room visits that don't result in a hospital admission.

How does the high-deductible Plan G work?

The high-deductible Plan G has a lower monthly premium. In exchange, you must pay an annual deductible ($2,870 in 2025) for covered services before the policy begins to pay its share.

What are Part B excess charges?

Part B excess charges are additional fees that a healthcare provider can charge (up to 15% more than the Medicare-approved amount) if they do not accept Medicare assignment. Plan G covers these charges, but Plan N does not.

How do I choose between Plan G and Plan N?

Consider Plan G if you prefer more predictable costs and don't want to worry about copays or excess charges, even with a higher premium. Choose Plan N if you are relatively healthy, have fewer doctor visits, and prefer lower monthly premiums, accepting some cost-sharing.

When is the best time to enroll in Medigap?

The best time is during your 6-month Medigap Open Enrollment Period, which starts the month you turn 65 and are enrolled in Medicare Part B. During this time, you have guaranteed issue rights, meaning your health status cannot be used to deny you a policy or increase your rates.