How Many Medigap Plans are Available in 2022 – If you’re nearing retirement age, it’s important to start planning for Medicare. And if you’re looking for information on Medigap plans, you’re in the right place. In this article, we’ll discuss how many Medigap plans will be available in 2022 and the most popular options. So keep reading to learn more!
Medigap Plan Options in 2022
The nice thing about Medigap plans, also called Medicare supplements, is that they don’t change from one year to the next. Of course, there are occasional updates to the program that may impact eligibility, but overall, Medigap plans in 2022 are the same as they were in 2021.
There are ten Medigap plans to choose from in 2022: Plans A, B, C, D, F, G, K, L, M, and N. There are also high-deductible versions of both Plans F and G. Some other plans are also still in use (Medigap Plans C, E, H, I, and J), but they are not a viable option for most people.
Let’s talk about the most popular Medicare supplements in 2022.
The Most Popular Medigap Plans in 2022
Three Medicare supplements are the most popular among Medicare beneficiaries. Choosing any of the other seven options is still very helpful in reducing your out-of-pocket healthcare costs, but these three are the most popular for the coverage they provide.
Medigap Plan F
Until recent years, Plan F was by far the most popular Medicare supplement. However, it is no longer available for anyone who turned 65 on or after January 1, 2020.
Plan F was so popular because it offered first-dollar coverage. That means that enrollees had virtually no out-of-pocket costs. As long as Original Medicare (Parts A and B) had approved the service or procedure, Plan F would pay for any costs that remained after Parts A and B paid.
Anyone who turned 65 prior to the cutoff date can still enroll in Plan F, even if they delayed their enrollment until this year. Individuals who were already enrolled in Plan F are also allowed to continue coverage in the plan.
Medigap Plan G
Medicare supplement Plan G quickly replaced Plan F in popularity. There are no eligibility requirements outside of the standard requirements for Medicare. In addition, there is just one small difference between Plans F and G, making Plan G the most obvious replacement for Plan F.
The difference? Plan G does not offer first-dollar coverage. However, the only thing not included in the benefits is payment for the Medicare Part B deductible. In 2022, that deductible is $233.
Now, there is something to consider even if you are eligible for both plans and want the most coverage you can get. Plan G has notably lower premiums. The difference in premium can even be enough to more than cover the $233 difference in coverage. This has caused many people who were enrolled in Plan F to take a closer look at Plan G. Remember, you can change your Medicare supplement plan at any time, so if you’re currently on Plan F and would like a lower premium, Plan G might be an option. (In most states, you’ll need to pass medical underwriting to switch plans.)
Medigap Plan N
Medicare supplement Plan N is actually growing faster than the other two options. Beneficiaries are seeing low premiums with very little (or even no) rate increases.
Like Plan G, Plan N does not offer first-dollar coverage and does not include payment for the Part B deductible. Another difference is that it does not cover any Part B excess charges. “Excess charges” are any amounts that your provider may charge that are more than the Medicare-approved amount. Providers are allowed to charge up to an additional 15% over the allowed amount if they have not agreed to accept Medicare assignment. Many people don’t see this as a reason not to sign up for Plan N. First, approximately 96% of providers accept Medicare, so excess charges are already rare. On top of that, there are eight states that prohibit excess charges altogether. The eight states are called “MOM” (Medicare Overcharge Measures) states and include New York, Minnesota, Massachusetts, Connecticut, Vermont, Rhode Island, Pennsylvania, and Ohio. Individuals who reside in one of the MOM states need not worry about excess charges.
Probably the most notable difference in Plan N is the copayment requirement. You’ll be responsible for up to a $20 copay for visits to your doctor and up to $50 for emergency room visits. We say “up to” because your provider may charge less. If you are admitted to the hospital after an emergency room visit, your copay is waived.
Plan N has lower premiums than either Plan F or Plan G. In addition, there have been many instances of no rate increases from one year to the next. Several states have not had a premium increase in the last two years. In contrast, Plans F and G generally increase each year, somewhere between 3% – 6%. The increase depends on the state and your insurance carrier.