If you’re enrolled in Original Medicare (Parts A and B), you already know the coverage gaps can add up fast. Hospital deductibles, 20% coinsurance with no cap, and zero coverage for foreign travel emergencies can leave you exposed to thousands of dollars in out-of-pocket costs every year.

That’s where Medicare Supplement Insurance — also known as Medigap — comes in. These privately sold plans fill in the gaps that Original Medicare leaves behind.

And if you pick the right one for your situation, you could realistically save $2,000 to $3,000 or more per year compared to paying those costs out of pocket.

In this article, we break down the five most popular Medigap plans — what they cover, what they cost, and who they’re best for.

What Is a Medicare Supplement (Medigap) Plan?

Medigap plans are sold by private insurance companies but are standardized by the federal government. That means Plan G from Company A offers the exact same benefits as Plan G from Company B — the only difference is the monthly premium.

There are 10 standardized Medigap plan types, labeled A through N (with some letters retired). The five plans we focus on here are the ones most commonly purchased by retirees because they offer the best balance of coverage and cost.

Quick fact: Medicare covers about 80% of approved healthcare costs. The remaining 20% — with no annual cap — is YOUR responsibility. A single hospital stay can easily cost a retiree $5,000–$10,000 out of pocket without supplemental coverage.

Plan 1: Medicare Supplement Plan G

The Gold Standard for New Medicare Enrollees

Plan G is the most comprehensive Medigap plan available to people who enrolled in Medicare on or after January 1, 2020. It covers nearly everything Original Medicare doesn’t — except for the Part B deductible ($240 in 2024).

What Plan G Covers:

• Part A hospital coinsurance and hospital costs up to 365 days after Medicare benefits are used up
• Part A hospice care coinsurance or copayment
• Part A deductible ($1,632 in 2024)
• Part B coinsurance or copayment (that 20% you’d otherwise pay)
• Part B excess charges
• Skilled nursing facility care coinsurance
• Blood (first 3 pints)
• 80% of foreign travel emergency care (up to plan limits)

What Plan G Costs:

Monthly premiums typically range from $100 to $180 depending on your age, location, and the insurer. Your only annual out-of-pocket expense is the Part B deductible of $240.

Savings Example: If you have a major surgery requiring hospitalization, Plan G could save you $4,000–$8,000 in a single year by covering the Part A deductible and 100% of your Part B coinsurance.

Who Should Choose Plan G?

• Retirees who want predictable, near-zero out-of-pocket costs
• People with chronic conditions or who expect frequent doctor visits
• Those who travel internationally

Plan 2: Medicare Supplement Plan N

Solid Coverage at a Lower Monthly Premium

Plan N is one of the most popular alternatives to Plan G. It offers very comprehensive coverage but with small copayments in exchange for a lower monthly premium — making it a smart choice for retirees who are generally healthy but want protection against major medical events.

What Plan N Covers:

Everything Plan G covers EXCEPT: Part B excess charges and up to $20 copay for office visits / $50 for ER visits that don’t result in inpatient admission

What Plan N Costs:

Monthly premiums typically range from $70 to $140 — roughly $30–$50 less per month than Plan G. Over a year, that’s $360–$600 in premium savings.

Savings Example: A healthy retiree who visits the doctor 8 times per year and uses in-network providers could save $200–$400 in annual premiums vs. Plan G, while still being protected from catastrophic costs.

Who Should Choose Plan N?

• Generally healthy retirees who want lower premiums
• People who typically use in-network doctors (to avoid excess charges)
• Budget-conscious retirees willing to pay small copays

Plan 3: Medicare Supplement Plan F

Maximum Coverage (Available to Pre-2020 Enrollees Only)

Plan F was once the most popular Medigap plan in America — and for good reason. It covers 100% of all Medicare-approved costs, leaving you with literally $0 in out-of-pocket expenses for covered services. However, as of January 1, 2020, Plan F is no longer available to new Medicare enrollees.

If you were eligible for Medicare before January 1, 2020 (meaning you turned 65 before that date), you may still be able to enroll in Plan F.

What Plan F Covers:

Everything Plan G covers, PLUS the Part B deductible ($240 in 2024). This means truly $0 out-of-pocket for all Medicare-approved services.

What Plan F Costs:

Monthly premiums typically range from $130 to $220. While it’s the most expensive plan, it eliminates all guesswork — your only cost is your monthly premium.

Who Should Choose Plan F?

• Pre-2020 Medicare enrollees who want zero out-of-pocket costs
• Retirees with frequent healthcare needs who value simplicity
• Those who dislike paperwork or tracking medical expenses

Plan 4: Medicare Supplement Plan K

The Budget-Friendly Safety Net

Plan K is one of the most affordable Medigap plans available. Instead of covering 100% of your gaps, it covers 50% — but it comes with an annual out-of-pocket maximum, which means once you hit that cap, Medicare pays 100% of covered costs for the rest of the year.

What Plan K Covers:

• Part A hospital coinsurance and hospital costs: 100%
• Part A hospice care coinsurance: 50%
• Part A deductible: 50%
• Part B coinsurance: 50%
• Skilled nursing facility coinsurance: 50%
• Blood (first 3 pints): 50%
• Out-of-pocket limit: $7,060 in 2024 (then 100% covered)

What Plan K Costs:

Monthly premiums typically range from $40 to $80 — often 60–70% less than Plan G.

Savings Example: A retiree paying $50/month for Plan K vs. $150/month for Plan G saves $1,200/year in premiums. If you stay reasonably healthy, that’s pure savings — and you’re still protected if something major happens.

Who Should Choose Plan K?

• Retirees on a fixed, limited budget
• Generally healthy individuals who want catastrophic protection
• People who can afford some out-of-pocket costs but want a safety ceiling

Plan 5: Medicare Supplement Plan G High-Deductible

Low Premiums + Full Coverage After a High Deductible

High-Deductible Plan G (Plan G-HD) is a relatively new option that offers the same comprehensive coverage as standard Plan G — but only kicks in after you’ve paid a large annual deductible ($2,800 in 2024). In exchange, your monthly premium is dramatically lower.

What Plan G-HD Covers:

Identical to Plan G — all Medicare gaps are covered after the annual deductible is met. This includes Part A and B coinsurance, Part A deductible, skilled nursing facility costs, and foreign travel emergencies.

What Plan G-HD Costs:

Monthly premiums typically range from $30 to $60 — sometimes 70–80% lower than standard Plan G. Your maximum annual out-of-pocket exposure is $2,800 (deductible) + premiums.

Savings Example: If you pay $45/month vs. $150/month for standard Plan G, you save $1,260/year in premiums. You’d need to accumulate over $2,800 in medical costs before Plan G-HD ‘costs more’ — making it ideal for healthy retirees who rarely hit that threshold.

Who Should Choose Plan G-HD?

• Healthy retirees who rarely use healthcare services
• People who can afford the deductible if a bad year occurs
• Those who want low, predictable monthly expenses
• Retirees comfortable self-insuring minor costs

How to Save Up to $3,000 a Year on Medigap

Here are the most effective strategies for maximizing your Medigap savings:

1. Shop Multiple Carriers — Same Plan, Different Prices

Because Medigap plans are standardized, the benefits are identical regardless of which insurer you choose. But premiums can vary by 40–80% for the same plan. Always get quotes from at least 3–5 insurers before enrolling.

2. Enroll During Your Open Enrollment Window

You have a 6-month open enrollment window starting the month you turn 65 and enroll in Part B. During this period, insurers CANNOT deny you coverage or charge you higher premiums based on health conditions. Miss this window and you may face medical underwriting.

3. Consider Switching Plans Annually

If you enrolled in Medigap years ago without shopping around, you may be overpaying. In many states, you can switch plans and carriers — especially during birthday or anniversary windows. Switching from an older Plan F to Plan G at a lower-cost carrier can save $500–$1,500 per year.

4. Use a Licensed Medigap Broker (at No Cost to You)

Independent brokers who specialize in Medicare can compare dozens of plans on your behalf — and their services are free to you (they’re paid by the insurers). They can also alert you to discounts like household pricing (some insurers offer 5–12% discounts if two people in the same household enroll with them).

5. Review Your Plan Every Year

Your health needs and insurer pricing change over time. A plan that was perfect at 65 may be costing you more than necessary at 72. Set a calendar reminder every fall (during Medicare’s Annual Enrollment Period) to review your coverage.

For more information regarding Medicare, you should read Medicare 101: A Step-by-Step Guide for New Retirees.

The Bottom Line

Choosing the right Medicare Supplement plan is one of the most impactful financial decisions you’ll make in retirement. The wrong plan — or no plan at all — can cost you thousands of dollars in unexpected medical bills.

The five plans outlined in this guide (G, N, F, K, and G High-Deductible) cover the needs of most retirees. Your ideal choice depends on your health, budget, and tolerance for out-of-pocket risk.