2020 Medicare Supplement Plans: What You Need to Know

2020 Medicare Supplement Plans at a Glance

Medicare Supplement plans, also called Medigap, help pay for costs Original Medicare does not cover, such as copayments, coinsurance, and deductibles. In 2020, a key change took effect: Plan F is no longer available to people who became eligible for Medicare on or after January 1, 2020. If you were eligible before that date, you may still be able to enroll in Plan F. Understanding the standardized plans, when you can enroll, and how to compare costs helps you make informed coverage decisions.

How 2020 Medigap Changes Affect You

The Medicare Access and CHIP Reauthorization Act of 2015 phased out Plan F and Plan C for new Medicare enrollees. Both plans covered the Part B deductible, which Medicare began requiring beneficiaries to pay starting in 2020. Plan G became the closest alternative, offering the same benefits as Plan F except it does not cover the Part B deductible. If you are new to Medicare in 2020 or later, you cannot enroll in Plan F or Plan C, but you can enroll in Plan G or any other standardized plan still available.

Standardized Medicare Supplement Plan Types

Medicare Supplement plans are standardized by letter, meaning Plan G from one company must offer the same core benefits as Plan G from another. The main plans available in 2020 include:

• Plan A: Basic coverage, including Part A coinsurance and hospital costs for an additional 365 days.
• Plan B: Adds coverage for the Part A deductible.
• Plan D: Covers Part A coinsurance, hospital costs, and the Part B coinsurance.
• Plan G: Comprehensive coverage except for the Part B deductible.
• Plan N: Similar to Plan G but with small copays for office visits and emergency room visits.

Who Can Enroll and When

Your best opportunity to buy any Medigap plan is during your six-month Medigap Open Enrollment Period, which begins the first month you are 65 or older and enrolled in Medicare Part B. During this window, insurers must sell you any plan they offer, regardless of health history, and cannot charge you more due to preexisting conditions. Outside that period, insurers can deny coverage or charge higher premiums based on your health. Some states have additional protections or open enrollment rules, so checking your state's rules is worthwhile.

Plan G Costs and What to Expect

Because Plan G does not cover the Part B deductible, you will pay that amount out of pocket each year. Beyond that, Plan G covers most remaining Medicare-approved costs for Part A and Part B. Premiums vary widely by insurer, location, age, and gender. In 2020, annual Plan G premiums commonly ranged from roughly $1,200 to over $3,000, depending on the carrier and where you live. Some companies use community-rated pricing, where premiums do not increase with age, while others use issue-age or attained-age rating.

Comparing Plan G and Plan N

Plan G and Plan N are often compared because both are popular among new Medicare enrollees. Plan G offers more complete coverage but typically comes with higher premiums. Plan N has lower premiums but requires small copays for certain doctor and emergency room visits, which can add up if you use healthcare services frequently. The right choice depends on how often you see doctors, your budget, and how much cost-sharing you are comfortable with.

How to Choose the Right 2020 Medigap Plan

Start by confirming your eligibility and the plans available in your area. Compare premiums from multiple insurers, keeping in mind that the lowest premium is not always the best value if the company has a history of rate increases. Check whether the insurer offers guaranteed-renewable coverage, which means the company cannot drop you as long as you pay your premium. Finally, confirm that the plan covers the services you use most, and consider whether you are comfortable paying the Part B deductible if you choose Plan G.

Medicare Supplement and Other Coverage

If you also have Medicare Advantage, you generally cannot use a Medigap plan. Medigap works alongside Original Medicare (Part A and Part B). Prescription drug coverage is not included in any standardized Medigap plan sold after 2006, so you will need a separate Medicare Part D plan if you take medications. Before enrolling, make sure your other coverage and your Medigap plan work together without gaps.