Center for a Secure Retirement
Medigap Plans in 2022: What to Watch For in Each Plan

Medigap Plans in 2022: What to Watch For in Each Plan

Are you thinking about adding Medicare Supplement Insurance — such as Medigap — to your health benefits planning? If so, you're in good company. In fact, according to a recent CNBC article, 14.5 million Americans have enrolled in a Medigap plan. Private insurance companies offer a wide range of these plans. Understanding what Medigap does and doesn't cover as well as the differences between Medigap plans in 2022 can help you make a more informed decision about whether you need supplement insurance with Medicare and determine which plan is best for you.

What is Medigap?

Available through private insurance companies, Medigap is Medicare Supplement Insurance created to cover the "gaps" in Original Medicare. It helps to pay for some of the costs such as co-payments, coinsurance and deductibles. It also helps to pay for services not covered by Medicare such as medical expenses that occur in a foreign country.

When you file a claim, Medicare covers the Medicare-Approved Amount, and your Medigap provider then pays its share. However, keep in mind that Medigap doesn't cover prescription medication, long-term care, vision care or dental care.

Medigap plans cover individuals, although providers may offer household discounts to help you save money.

Most Common Medigap Plans in 2022

With the Medicare enrollment period approaching, now's the time to make decisions about your health care benefits for 2022. If you're considering getting Medical Supplement Insurance, compare what's included in each Medigap Plan.

Some plans, like Plan F, have been more popular than others in the past because they offer wider coverage. However, recent changes mean that not everyone is eligible for all Medigap plans.

Here are the most common Medicap plans for 2022, including what each plan does and doesn't cover.

Plan A

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: No
  • Foreign travel: No
  • Part A Deductible: Yes
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan B

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: No
  • Foreign travel: No
  • Part A Deductible: Yes
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan C

Note: Plan C is not available to people newly eligible for Medicare in 2020 or later.

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: Yes
  • Part B Deductible: Yes
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan D

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: Yes
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan F

Note: Plan F is not available to people newly eligible for Medicare in 2020 or later.

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: Yes
  • Part B Deductible: Yes
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan G

Note: Plan G does cover Part B excess charges. That makes it a good alternative to Plan F.

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: Yes
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan K

  • Coverage of co-payments and coinsurance: Yes for Part A, 50% for Part B
  • Skilled nursing care: 50%
  • Foreign travel: No
  • Part A Deductible: 50%
  • Part B Deductible: No
  • Hospice Care: 50%
  • Out-of-pocket Limit: $6,220 in 2021

Plan L

  • Coverage of co-payments and coinsurance: Yes for Part A; 75% for Part B
  • Skilled nursing care: 75%
  • Foreign travel: No
  • Part A Deductible: 75%
  • Part B Deductible: No
  • Hospice Care: 75%
  • Out-of-pocket Limit: $6,220 in 2021

Plan M

  • Coverage of co-payments and coinsurance: Yes
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: 50%
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Plan N

Note: Plan N is usually the least expensive of all the Medigap plans.

  • Coverage of co-payments and coinsurance: Yes for Part A; 100% for Part B co-payments for some office visits (up to $20) and for emergency room visits not resulting in inpatient admission (up to $50).
  • Skilled nursing care: Yes
  • Foreign travel: 80%
  • Part A Deductible: Yes
  • Part B Deductible: No
  • Hospice Care: Yes
  • Out-of-pocket Limit: Not applicable

Medigap Changes in 2022

The first thing to know about Medigap changes in 2022 is that premium rates can increase due to inflation and other factors. For the most up-to-date information on Medigap rates in your area, check with Medigap Medicare Supplement Insurance providers in your state.

It's also important to know that as of January 2020, if you have just recently become eligible for Medicare, Medigap cannot cover the Medicare Part B deductible. That's why newly eligible Medicare applicants are ineligible for plans C and F as noted above. However, Plan G does help cover Part B excess charges.

What to Know When Comparing Medigap Plans

When you're comparing Medigap plans, keep these points in mind.

Medigap plans in 2022 are standardized to offer similar benefits regardless of provider and state, with the exceptions of benefits offered in Massachusetts, Minnesota and Wisconsin. For example, Plan N includes similar benefits in New York State and California, regardless of which provider you choose.

However, not all plans are available in every state. Additionally, the deductibles can vary by state and also by the provider within the state. You might also find a wide range of premiums across providers.

Rising Medicare costs, economic concerns and the realities of life on a fixed income mean today's American seniors must pay close attention to their personal health care spending. Understanding the options available through Medigap can help you decide if it's a good choice for you and which plan is best suited to your needs. Don't forget to comparison shop among providers as premiums can vary greatly. And remember, keeping up-to-date with Medigap changes each year can help you better plan for health care spending.

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