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How Much Can a Medigap Plan Save Me


There are many options for supplemental insurance to Medicare. You might be wondering How much can a Medigap plan save me? Indeed, the answer to this question depends on a variety of factors. One of the most important factors is how much you would be spending on out-of-pocket health care costs without a Medigap plan. In the content below, we’ll go over the ways in which a Medigap plan can save you money. Additionally, you’ll gain a better grasp of how much money a Medigap plan can save you.

How Much Can a Medigap Plan Save Me?

Often, beneficiaries wonder if enrolling in a Medigap plan is worth it. Yet, the answer to this question is not one-size-fits-all. An Advantage plan might be better for those who rarely need to see doctors and cannot easily spring for the monthly premium.

The best way to predict your future health care costs is to analyze your current health care costs. Still, the future is uncertain and if you can afford more coverage, it’s better to have it.

If you’re currently enrolled in Medicare, the Medicare Summary Notice you receive each quarter can help you determine costs, along with your medical bills. You’ll want to consider how much you’ve been paying out-of-pocket, meaning deductibles, copayments, and coinsurance.

Thus, the answer to how much a Medigap plan can save you is different for each person. At the least, these plans will cover coinsurance and copays. In an extreme situation, a Medigap plan can help you save hundreds of thousands of dollars. These situations involving medical emergencies are on the rarer side. Yet, they are possible and coverage can alleviate the additional financial burden.

How Can a Medigap Plan Help Me Save Money?

Without a Medigap plan, Part A and Part B only partially cover your inpatient and outpatient costs. For people who need to spend more out-of-pocket on their health care, Medigap plans make sense. The coverage most Medigap plans offer includes costs for skilled nursing facilities. Do you anticipate the need to stay at a skilled nursing facility in the future?

If so, the coverage a Medigap plans includes could provide significant savings – tens of thousands of dollars if you need to stay more than 20 days. The same goes for hospital visits. Medigap covers up to 365 days in the hospital after Medicare benefits are used up.

Do you think you may eventually need a blood transfusion? All Medigap plans pay at least 50% for the first three pints of blood.

If you plan on traveling outside of the United States, a Medigap plan can be a wise choice. Most Medigap plans pay for foreign travel emergency costs up to a lifetime plan limit of $50,000. Original Medicare doesn’t work outside the United States, so costs could add up if you suffer a medical emergency abroad.

Also, consider any diagnoses you have, and whether these mean you’ll need to visit doctors more often. Part B partially pays for durable medical equipment, such as wheelchairs. If you foresee a need for DME, a Medigap plan will take care of costs you’d otherwise need to pay.

What are the Savings Amounts with Medicare Supplement Plans?

Most Medigap plans pay for the total Part A deductible each year. The Part A deductible is over $1,400 annually and increases each year. Further, those eligible for Plan C or Plan F can also have the Part B deductible covered, saving over $200 annually.

Some Medigap plans cover Part B excess charges for those living in the states allowing them. If this is the case for you, you could easily be saving significant money by enrolling.

If you find that most of your costs are related to prescription drugs that you take at home, know that available Medigap plans don’t provide coverage for these. Whether or not you choose to go with a Medigap plan, you should consider a Part D plan to help cover prescription drug costs.

How Can I Compare Medigap Premium Costs Versus Savings?

Ultimately, an important consideration you must make is whether you’ll be saving more with a Medicare Supplement plan than you would be spending in premiums over the years. With a Medigap plan, you must pay a monthly premium in addition to your Part B premium (and Part A premium, if applicable).

This monthly cost is what makes many people hesitate to enroll in Medigap plans. However, if you’ve analyzed your future savings, you’ll know if it makes sense to pay the monthly premium.

To find the right Medigap plan for you, determine what coverage makes sense for your needs and what you’re willing to pay each month. Plans offering more coverage come with higher Medicare Supplement premiums. There are additional factors that impact the prices, including your location. It’s also possible that not all plans are available in your area.

If you don’t need the full range of coverage that the more expensive plans offer, you can find a happy medium. The best way to do this is to know what each Medigap plan covers and choose the one that fills in the gaps for which you most need coverage.

How to Save Money with a Medicare Supplement Plan

Enrolling in a Medigap plan is a decision best made when informed and educated about your options. There are multiple levels of coverage. The best result comes from choosing the one that is right for your health and budget needs. Keep in mind not just the present moment, but the future as well.

To explore the Medicare Supplement plan options available to you, call the phone number above. An agent licensed in your state will help find the best coverage. We can analyze your current health care costs and give you a better idea of what you'll save with a Medigap plan.

Don't have time to call now? Fill out our online rate form to get a plan comparison. When you work with us, we provide ongoing support beyond helping you enroll.

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Lindsay Malzone

Lindsay Malzone is the Medicare expert for MedicareFAQ. She has been working in the Medicare industry since 2017. She is featured in many publications as well as writes regularly for other expert columns regarding Medicare. You can also find her over on our Medicare Channel on YouTube as well as contributing to our Medicare Community on Facebook.

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