When it’s time to sign up for Medicare, you might find the process daunting due to the maelstrom of parts: A, B, C (Medicare Advantage), D, Medigap plans, Special Needs Plans and more.
Navigating through this sea of information is crucial, especially for beneficiaries considering the pros and cons of original Medicare and Medigap.
[READ: How to Change Your Medicare Supplement Plan]
What Are the Parts of Medicare?
Medicare consists of four main parts that provide a unique level of coverage. Each one plays an important role in giving beneficiaries comprehensive health insurance, from hospital and physician care to drug coverage and other benefits.
| Medicare part | What it covers | Costs in 2026 |
| Part A (hospital insurance) | Inpatient care in hospitals, skilled nursing facility care, hospice care and some home healthcare | Premium: $0 (if a beneficiary or their spouse has paid Medicare taxes, typically for 10 years, during their working years) Deductible: $1,736 |
| Part B (medical insurance) | Medically necessary services and preventive services, including visits to the doctor and other healthcare providers, outpatient care, annual physical exams, vaccines and durable medical equipment (such as walkers or wheelchairs) | Premium: $202.90 Deductible: $283 |
| Part C (Medicare Advantage) | These stand-alone insurance options administered by private insurance companies must cover everything that original Medicare (Part A and Part B) does. | Varies by plan, but out-of-pocket costs are capped at $9,250 |
| Part D (prescription drug) | These plans, added as part of a Medicare Advantage plan or used in tandem with original Medicare, vary in terms of specific drugs covered and in-network pharmacies | Varies by plan, but out-of-pocket costs are capped at $2,100 |
[READ: How Much Does Medigap Cost?]
What Is Medigap?
Medicare supplemental insurance, also known as Medigap, is extra insurance that you can purchase from a private health insurance company to help cover the “gaps” of original Medicare. After all, it’s impossible to predict every medical need with certainty, and because original Medicare only covers 80% of costs after the deductible and lacks an out-of-pocket limit, medical bills can add up. Medigap plans are designed to help cover the 20% you are responsible for, including:
— Routine costs, such as copays and deductibles
— Major expenses, such as a long-term hospital stay
Types of Medigap plans
There are 10 standardized Medigap plans
available in most states, identified by letters: A, B, C, D, F, G, K, L, M and N.
By law, each lettered plan offers the same core benefits regardless of the insurance provider. However, the costs can vary between insurance companies, so it’s important to compare prices for the same lettered plan to ensure you get the best deal.
Keep in mind that Medigap monthly premiums are in addition to your regular Medicare premiums.
[READ: Your Guide to Medigap Plan A]
Can You Have Both Medicare Advantage and Medigap?
No, you cannot have both a Medicare Advantage plan and a Medigap plan. However, you can mix and match either option with other plans.
[IMAGE]
Who Is Eligible for Medigap Insurance?
To be eligible for a Medigap plan, certain criteria must be met. This includes:
— Age requirement. Those who are age 65 and older qualify. Federal law does not require companies to sell Medigap plans to those who qualify for Medicare and are under 65, but some states do.
— Enrollment in original Medicare. You must sign up for parts A and B to qualify.
— Residency. While each lettered plan provides the same benefits, that doesn’t mean that each one is offered in your state. Plans offered in Massachusetts, Minnesota and Wisconsin have different standards of coverage.
Benefits of Medigap Insurance
While the monthly premiums can be expensive depending on the plan selected and on your health, they can save you money in the long run.
— Parts A and B coinsurance coverage. No one likes to feel nickel-and-dimed by smaller charges, such as coinsurance or copays. If you need surgery or a long hospital stay, these plans can give you peace of mind knowing that you won’t have large and potentially financially crippling medical bills coming due.
— Predictable healthcare costs. Medigap plans also offer the benefit of predictability in your healthcare costs, making it easier to budget for medical expenses.
— Renewable coverage. Medigap plans are renewable as long as you pay the premiums, providing lifetime coverage.
— Foreign travel coverage. Medigap plans often include coverage for foreign travel emergencies, which original Medicare does not cover, giving you additional protection if you travel internationally.
Choosing a Medigap Plan
Once you have found the lettered plan whose benefits best fit your needs, it’s time to do a little comparison shopping.
“No matter what plan you are considering, exploring plan details and speaking with providers and others who have already purchased the plan you are considering is worthwhile,” says Joe Baker, president emeritus of the Medicare Rights Center, a New York City-based nonprofit that helps older adults understand Medicare benefits.
The most comprehensive Medicare supplement insurance plan is Plan F, which covers an extensive array of benefits. However, Plan F has not been available to people new to Medicare since January 1, 2020. Individuals who were eligible for Medicare as of that date but not yet enrolled may still be able to buy one of these plans, and individuals who enrolled before January 1, 2020, have been allowed to keep their plan since the rule change.
New members who are not eligible for Plan F may want to consider Plan G. This Medigap plan also offers comprehensive coverage, though it does not cover the Medicare Part B deductible (which Plan F does). It is currently the most popular Medigap option, according to KFF.
When to Enroll in a Medigap Plan
The best time to purchase a plan is the six-month period after your 65th birthday and when you enroll in parts A and B. This is known as your Medigap open enrollment period, and unlike the yearly Medicare open enrollment period, this only happens once. During this time, you can buy any policy available at preferred pricing regardless of preexisting health conditions.
Changing your Medigap coverage outside of this period can result in losing your preferred status. There are some exceptions, and Medicare.gov provides an online tool to check if you have a legal right to switch or drop Medigap policies. Outside of this six-month window, insurers may charge higher premiums or decline coverage based on factors such as preexisting conditions or age.
Bottom Line
Signing up for a Medigap plan can be a smart financial move to help shield you from large medical bills. Additionally, Medigap plans offer the flexibility to choose any doctor or hospital that accepts Medicare, without the need for referrals.
Medigap policies are standardized, meaning the benefits of each plan type are the same across all insurance companies to ensure members receive consistent coverage regardless of the healthcare provider.
More from U.S. News
Does Medicare Cover Eye Exams, Glasses and Vision Care?
How to Get a Replacement Medicare Card
Does Medicare Cover Chronic Pain Management?
What?s the Difference Between Medicare and Medigap? originally appeared on usnews.com
Update 06/11/26: This story was previously published at an earlier date and has been updated with new information.
