Medicare Supplement Annual Enrollment Period Options and Benefits

The Medicare Supplement Annual Enrollment Period (AEP) offers several options to help you choose the right plan. This period typically runs from October 15 to December 7 each year.

During AEP, you can enroll in a new Medicare Supplement insurance plan or switch to a different one. You can also drop your current plan, but keep in mind that you may not be able to get back into it later.

One of the most significant benefits of AEP is that you can enroll in a plan without having to answer medical questions. This means your health status won't affect your ability to get coverage.

You'll have 45 days to enroll in a new plan once you've applied, giving you time to review and compare your options.

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Medicare Supplement insurance plans are also known as Medigap plans. They work alongside Original Medicare coverage to help fill in some of the coverage gaps.

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Medigap plans can pay for certain costs that Original Medicare doesn't cover, such as cost sharing and benefits like emergency overseas health coverage and Medicare Part B excess charges.

These excess charges can add up to 15% extra amount that non-participating providers may charge you over what Medicare will pay for a covered service.

Private companies administer Medigap plans to help fill in Medicare coverage gaps. A Medigap policy can be held alongside Original Medicare, made up of Parts A and B.

Medigap plans can help cover some of the out-of-pocket expenses, such as copayments, coinsurance, excess charges, and deductibles.

Here are some of the out-of-pocket expenses that Medigap plans can cover:

Medigap policies only cover one person. If a person and their spouse both want a Medigap policy, each must buy their own.

You have a one-time, six-month Medigap open enrollment period that begins the first month of Medicare Part B coverage, which is a great time to buy a Medigap policy without worrying about health or medical history.

This enrollment period is guaranteed, meaning you can't be denied or charged more based on your age, gender, or health status. You can buy any Medigap policy sold in your state during this time.

If you're under 65 and qualify for Medicare, you don't get this guaranteed enrollment period. However, some states offer additional protections that allow you to buy a Medigap policy during an initial open enrollment period.

You also have guaranteed issue rights during specified "trial" periods, such as the first year you're in a Medicare Advantage plan. During this time, you can try a Medicare Advantage plan and then switch to Original Medicare and buy any Medigap policy offered by any insurer in your state.

If you disenroll from a Medicare Advantage plan within the first year, you have 63 days to apply for a Medigap policy. Some states, like Connecticut, Massachusetts, Maine, and New York, require Medigap insurers to offer policies continuously throughout the year or once per year without regard to medical conditions.

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Medicare supplement policies come in different types, each with its own set of benefits. There are 10 different types of Medigap policies, labeled A through N.

Plan G is the most popular Medigap policy, covering nearly 5.3 million people, or 39% of all policyholders, in 2023. It covers the Part A deductible and all cost sharing for Part A and B covered services, but not the Part B deductible.

Plan G has become the most popular plan since Plan F can no longer be sold to new beneficiaries who turned 65 on or after January 1, 2020. Plan F covered all the same benefits as Plan G, as well as the Part B deductible.

Plan N has the third largest share of Medigap enrollment, covering 10% of policyholders or nearly 1.4 million people.

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Medigap policies come in 10 different types, each with its own standardized set of benefits. The most popular policy is Plan G, accounting for 39% of all policyholders in 2023.

Plan G is the most comprehensive policy available to new policyholders, covering the Part A deductible and all cost sharing for Part A and B covered services. It doesn't cover the Part B deductible, however.

Plan F is no longer available to new beneficiaries who turned 65 on or after January 1, 2020, due to a change in law. It covered all the same benefits as Plan G, as well as the Part B deductible.

Plan F has the second largest share of Medigap enrollment, covering 36% of Medigap policyholders or nearly 4.9 million people. Plan N has the third largest share of Medigap enrollment, covering 10% of policyholders or nearly 1.4 million people.

Plan N is similar to Plan G, except that there are Part B copayments for some office visits and some emergency room visits. It also doesn't cover Part B excess charges.

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As you start to explore your Medicare options, it's essential to understand the different parts that make up this comprehensive health insurance program.

Medicare Part A is hospital insurance, covering costs associated with hospital stays, care in a skilled nursing facility, and hospice care.

Medicare Part B provides medical insurance, covering services such as doctor visits, outpatient care, and preventive services.

Medicare Part C, also known as Medicare Advantage, is an alternative to Original Medicare, offered by private insurance companies.

Medicare Part D is a prescription drug plan, helping to cover the cost of prescription medications.

Medicare Supplement Insurance, also known as Medigap, is designed to fill gaps in Original Medicare coverage, providing additional financial protection.

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During your Medigap open enrollment period, you can buy any policy sold in your state, and insurance companies can't deny coverage due to health conditions. This is a one-time opportunity, and once it ends, the rules change.

If you enroll during this time, you have a guaranteed issue right, which means insurance companies can't charge you more or deny coverage based on your health history. This protection is only available during open enrollment and guaranteed issue periods.

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You can also enroll in Medigap during Medicare or Medicare Advantage open enrollment periods, but if you're outside of your Medigap open enrollment period and don't have guaranteed issue rights, insurers can charge you more or deny coverage based on your health or medical history.

Here are the open enrollment periods when you can switch from Medicare Advantage to Original Medicare with a Medigap plan:

In some states, you may have additional opportunities to switch Medigap policies without medical underwriting, known as "birthday rules." These rules differ significantly between states, so it's best to check with your State Health Insurance Assistance Program (SHIP) for more information.

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If you have group health coverage with an employer or union, you can choose to delay enrolling in Medicare Part B. This means you can wait to enroll until your group health coverage ends.

You won't face a late enrollment penalty if you enroll in Medicare without a break in coverage. People get the best price during Medigap open enrollment, which begins after your group health coverage ends.

Medigap open enrollment begins when you enroll in Medicare Part B, even if you're still covered by your employer. This is a great opportunity to sign up for Medigap coverage at a lower price.

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You can switch to Original Medicare within the first year after trying Medicare Advantage, and you'll have guaranteed access to any Medigap policy offered by any insurer in your state.

If you decide to switch, you can buy any Medigap policy except for Plan C or Plan F, which have specific qualification requirements.

You can't be charged more for a Medigap policy just because of your health or medical history, thanks to the trial right.

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You can buy any Medigap policy sold in your state during your 6-month open enrollment period.

Medigap plan providers cannot deny coverage, even if you have specific health conditions. This is a great time to enroll in a Medigap policy that suits your needs.

Private companies don't have to offer Medigap plans after the open enrollment period ends, and if they do, the policies may cost more.

If a company decides to increase the cost of a plan based on your past or present health problems, it's only allowed outside of the Medigap OEP.

This is known as medical underwriting, and in some cases, health conditions can be excluded from coverage altogether.

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The free look period is a 30-day window that gives you time to decide if you want to keep a new Medigap policy.

You'll have to promise to cancel your existing policy as part of the application, but wait to cancel it until you're sure you want to keep the new policy.

To take advantage of the free look period, don't cancel your existing policy right away, and decide within 30 days if you want to keep the new policy.

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The average monthly Medigap premium across all current Medigap policyholders was $217 in 2023.

Premiums vary significantly depending on the policy type, with Plan G having an average monthly premium of $164 and Plan F having an average monthly premium of $274.

Nine states require community rating among policyholders ages 65 and older, which means the same premium is charged to everyone, regardless of age or gender.

Four states permit issue-age rating but prohibit attained-age rating, which means the premium is based on the age of the beneficiary when they purchase the Medigap policy.

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The three states with the highest premiums for Plan G are New York, Connecticut, and Maine, all of which have continuous or annual guaranteed issue protections.

In 36 states, rules vary as to whether the same premiums are required for people under 65 and people ages 65 and older during the initial open enrollment period.

Among these 36 states, 21 states limit how much insurers can charge in premiums for beneficiaries under age 65.

The average monthly premium for Plan G ranged from $140 in Washington D.C. and $141 in Hawaii and New Mexico to $236 in New York in 2023.

The five states with the most expensive monthly premiums on average in 2023 for Plan G are New York, Connecticut, Maine, Washington, and Florida.