Why Not Pick the Cheapest Medigap Plan? Pros, Cons, and Tips

There’s no doubt that price plays a big role in choosing a MedSup plan, but why not pick the cheapest Medigap plan? Before you pull the trigger on a new low-cost Medigap Plan A, you must weigh the benefits of each plan against the overall coverage, so you’re not left with unexpected expenses down the road.

Before we continue: When we refer to the “Cheapest Medigap Plan,” we’re talking about the relative cost differences between the various lettered plans—such as Plan A, Plan N, and Plan G. Some plans tend to be priced significantly lower than others. For example, Plan A typically costs less than Plan N, which in turn is usually less than Plan G. We’re not comparing prices between insurance companies offering the same plan letter; we’re strictly looking at how the plans themselves differ in average cost.

What Makes the Cheapest Medigap Plan Attractive?

When you’re exploring Medigap plans, it’s only natural to be drawn to the lettered plan with the lowest premium. After all, saving money is always appealing, especially when you’re living on a fixed income.

However, while the price is a major factor, it’s important to understand that a cheaper lettered plans often comes with trade-offs. These plans typically cover less, which could lead to higher out-of-pocket expenses when you need care. It’s easy to be tempted by the idea of paying less each month, but lower cost lettered Medigap plans may not meet your specific health needs.

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What is the Cheapest Medigap Plan and Is It Worth It?

The cheapest Medigap plan is often plan A, which provides the basic coverage required by law. It covers essential benefits like Part A and Part B coinsurance and certain hospital costs, but it doesn’t include some of the additional coverage options that other plans, like Plan G or Plan N, offer.

While it may seem like a great deal due to its lower cost, it’s important to consider your healthcare needs. Plan A doesn’t cover things like skilled nursing facility care, foreign travel emergencies, or the Part B excess charges that some other plans do. Depending on your health situation, the savings from choosing Plan A may not be worth the potential out-of-pocket costs you could face later on. Senior65.com rarely, if ever, recommends Medigap Plan A. It is not worth it!

If you are interested in quality cheap Medigap plan, we believe High Deducible Plan G is a much better low cost plan than Medigap Plan A. Here is why:

• Low Monthly Premiums: High G usually has one of the lowest monthly premiums out there.
• Same Coverage as Plan G After Deductible: Once you meet the deductible of $2,870 , High Deduct G offers the same comprehensive coverage as standard Plan G—including hospital copays and 20% coinsurance for outpatient services.

So if you’re relatively healthy and want to keep monthly costs low, High Deductible Plan G can be a smart option. For a clearer idea of which plan suits you best, use our Wizard Tool to compare Medigap plans in your area.

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See All the Medigap Lettered Plans

In most states, there are ten standardized Medigap plans available. However, Plans C and F are no longer offered to anyone becoming eligible starting in 2020. Take a look at the table below to compare the coverage and benefits each plan offers:

Source: Medicare.gov.

So Which Medigap Plans Should I Consider?

We think there are really 3 main plans you should be looking at:

Medigap Plan G: Most expensive but best coverage. It has had the most enrollments since 2020 for good reason. It covers everything except the Part B deductible.

Medigap Plan N: Less expensive that G but has copays and doesn’t cover excess charges. A very good option if you are ok with copays. Excess charges are very rare.

Medigap High Deductible G: One of the lowest priced plans out there. Same coverage as Plan G but requires a big $2,870 deductible first. Great for healthy people who want to pay less each month in exchange for a higher deductible.

All the other lettered plans are either overpriced or have dangerous gaps in coverage.

What About Selecting the Cheapest Insurance Company?

Once you select your Medigap plan letter (eg. Plan N) then you should definitely look to see which insurance provider sells that plan at the best monthly price. Since all Plan N’s are identical in network and benefits and insurance companies cannot generally offer better (or worse) service, you should consider the cheapest plan! The most expensive Plan G insurance provider will pay the exact same amount for all claims as the cheapest Plan G insurance plan so why pay more.

👉Ready to make a choice? Compare prices in your area through our Instant Free Quote.

Tips for Finding Affordable Medigap Plans That Offer Good Coverage

Finding a Medigap plan that balances affordability with strong coverage doesn’t have to be tricky. Here are some tips to help you get the best value:

• Assess Your Health Needs First
  Think about your current health and how often you visit doctors or specialists. If you rarely see a doctor, a plan with lower premiums and higher copays might work. But if you expect frequent care, paying a bit more for a plan with lower out-of-pocket costs could save you money in the long run.
• Once You Select the Right Plan, Then Look for the Cheapest Price
  It’s ok to select the lowest cost insurance provider once you have decided on which lettered plan you are going with.
• Don’t forget Discounts If you are looking for the cheapest price, make sure you factor in household discounts, autopay and New to Medicare discount. Ready for the details? Our article has all the info you need: Medigap: Discounts and Special Offers.
• Use Online Tools to Compare Plans
  Our Instant Quote Tool lets you easily compare costs, discounts and coverage from multiple carriers in your area — all in one place.
• Check for State-Specific Protections
  Some states have special rules that allow you to switch plans more easily or avoid medical underwriting. Find out if you qualify with our Medigap Birthday Rule Guide.
• Consult an Expert When Needed
  Insurance decisions can be complex, so not hesitate to reach out to our team at Senior65.com for help. Just call us at 800-930-7956. There is never a charge or hidden fee to work with us and no one can sell the same Medigap plan for less than Senior65.com can.

Q&A: Why Not Pick the Cheapest Medigap Plan

Q: Does choosing a cheaper plan limit my access to doctors or hospitals?

A: Usually No. With most Medigap plans you can visit any doctor or hospital that accepts Medicare — there are no networks to worry about. The only exception are Medigap SELECT plans. Medicare SELECT plans typically lower cost and have smaller provider networks compared to standard Medigap (Medicare Supplement) plans. Senior65.com does not feature SELECT plans in our quoting tool.

Q: How can I tell if a cheaper plan will actually cost me more in the long run?

A: It helps to look beyond just the monthly premium and think about how often you visit doctors, or need emergency care. Using tools like our Instant Medigap Quote Tool can help you compare plans side by side, factoring in both premiums and potential out-of-pocket costs.

Q: What should I do if I’m not sure which plan is right for me?

A: Don’t hesitate to reach out to us at 800-930-7956 to discuss your options based on your health and budget. You can also try our Medigap Underwriting AI Tool to see your chances of approval for different plans if you are not in your initial enrollment or special enrollment period.