Key Takeaways

• Medigap plans are becoming increasingly relevant in 2025 as healthcare costs continue to rise and Medicare alone covers only a portion of your medical expenses.

• These plans offer predictable, stable coverage that helps you manage out-of-pocket costs that could otherwise disrupt your retirement budget.

Why Medigap Still Matters in 2025

In 2025, Original Medicare (Part A and Part B) continues to leave significant gaps in your healthcare coverage. It only covers about 80% of approved services, which means you are responsible for the remaining 20%. This might not sound like much until you consider how quickly that 20% can add up during a hospital stay, outpatient surgery, or ongoing medical treatments.

This is where Medicare Supplement Insurance—commonly known as Medigap—steps in. It covers some or all of the out-of-pocket costs left behind by Medicare, such as deductibles, coinsurance, and copayments. While Medigap plans might not come with the bells and whistles of other Medicare options, they serve a crucial purpose: protecting your savings and providing peace of mind.

What Medigap Covers

Medigap plans help pay for:

• Medicare Part A coinsurance and hospital costs

• Medicare Part B coinsurance or copayments

• First three pints of blood

• Part A hospice care coinsurance or copayment

• Skilled nursing facility care coinsurance (with most plans)

• Medicare Part A deductible (with most plans)

• Foreign travel emergency care (with select plans)

Coverage depends on the specific plan letter you choose (e.g., Plan G, Plan N), but all Medigap plans are standardized across most states. This means the basic benefits of a Plan G in one state are the same as a Plan G in another.

What Medigap Does Not Cover

Even in 2025, Medigap plans do not include:

• Prescription drugs (you’ll need a separate Part D plan)

• Long-term care (such as custodial care in a nursing home)

• Dental, vision, and hearing services

• Private-duty nursing

• Coverage outside the U.S. beyond the limited foreign travel emergency benefits

Who Should Consider a Medigap Plan in 2025

Medigap may be the right choice if:

• You want the freedom to choose any doctor or specialist who accepts Medicare.

• You travel often within the U.S. and don’t want to worry about provider networks.

• You value predictable, stable healthcare expenses and fewer surprise bills.

• You are willing to enroll in a separate drug plan (Part D) to ensure prescription coverage.

Enrollment Timing Still Matters

Timing is critical with Medigap. Your Medigap Open Enrollment Period begins when you are both 65 or older and enrolled in Medicare Part B. This window lasts for 6 months, and during it, you have guaranteed issue rights—meaning insurers cannot deny you coverage or charge more due to pre-existing conditions.

After this period, getting a Medigap plan becomes more difficult. You may have to undergo medical underwriting, face higher premiums, or even be denied coverage altogether. This is why many people consider Medigap early—before health conditions complicate their eligibility.

Medigap vs. Medicare Advantage in 2025

Medigap and Medicare Advantage (Part C) are not the same—and you cannot have both. Each comes with trade-offs:

Medigap:

• Works with Original Medicare

• Higher monthly premiums but fewer out-of-pocket costs when you use services

• No provider networks—see any doctor that accepts Medicare

Medicare Advantage:

• Replaces Original Medicare coverage

• May have lower premiums but higher copays or coinsurance

• Often requires you to stay within a provider network

In 2025, with more Medicare Advantage plans offering extra benefits, many people feel drawn to those options. However, it’s essential to remember that Medigap is built for financial stability and flexibility—especially when you value choice and peace of mind over extras.

Medigap Standardization in 2025

Standardization of Medigap plans still holds in most states in 2025. There are currently ten standardized plans labeled A through N (not all letters are in use), each offering a different mix of benefits. Here’s what you need to know:

• Plan G remains one of the most popular choices in 2025 because it covers almost everything except the Part B deductible.

• Plan N is also widely chosen, with slightly lower premiums but potential copayments for office visits and emergency room use.

• Plans C and F are only available to those who became eligible for Medicare before January 1, 2020.

This standardization helps you make apples-to-apples comparisons. Regardless of the insurance company offering it, the benefits of a specific Medigap plan are identical.

What You Pay With Medigap

While you can’t have exact premium figures in this article, it’s important to understand the general costs:

• Monthly premiums vary depending on your age, gender, location, tobacco use, and plan letter.

• Medigap premiums are paid in addition to your Medicare Part B premium, which in 2025 is $185 per month.

• You’ll also need to budget separately for prescription coverage (Part D).

Even though Medigap comes with a premium, the trade-off is financial predictability. Instead of worrying about the next medical bill, you’re managing fixed monthly costs.

How Medigap Coordinates With Medicare

Here’s how Medigap integrates with your coverage:

1. You receive care.

2. Your provider bills Medicare.

3. Medicare pays its share of approved charges.

4. Medigap pays its portion based on your plan’s benefits.

5. You are left with little or nothing to pay, depending on your plan.

This process ensures seamless coverage and reduces the likelihood of surprise medical bills. Unlike some other plans, Medigap doesn’t require prior authorization for procedures and typically does not delay care.

Changing Medigap Plans in 2025

Switching Medigap plans is allowed at any time, but the process is not always straightforward. Outside of your initial enrollment period, you may have to:

• Answer medical questions

• Undergo underwriting

• Face higher premiums or denial of coverage

Some states have special rules allowing easier plan changes—check with a licensed agent listed on this website to understand your state’s rules.

Tips for Choosing a Medigap Plan in 2025

When comparing Medigap plans this year, keep the following in mind:

• Know what’s standardized: Benefits are identical for the same plan letter, no matter the insurer.

• Check pricing structure: Some plans use attained-age pricing, meaning premiums increase as you age. Others use issue-age or community-rated pricing.

• Consider your health needs: If you expect frequent healthcare visits or procedures, a more comprehensive plan might be worth the cost.

• Add Part D coverage: You’ll need a standalone drug plan to avoid penalties and ensure complete protection.

• Watch your enrollment window: Missing it may mean higher costs or limited options later.

Why Medigap Is Still a Wise Choice in 2025

While other Medicare options might offer dental, vision, or gym memberships, Medigap provides something even more critical: financial safety and provider freedom. You’re not locked into networks, you avoid referral requirements, and you know what to expect when medical issues arise.

With healthcare inflation continuing to rise in 2025, Medigap’s value lies in what it saves you over the long term—not just what it offers upfront.

Making the Most of Your Medigap Coverage

If you already have a Medigap plan, take time this year to:

• Review your benefits and whether they still meet your needs.

• Compare premium changes and check for alternative plans.

• Verify your Part D coverage is up to date.

• Ensure your providers still accept Medicare.

Regular reviews help you stay protected without overpaying. Don’t wait until you face a major medical event to find out your plan doesn’t cover what you thought it did.

Protecting Your Health and Finances Starts Here

Medigap may not be flashy, but its protection against unpredictable costs is more relevant than ever in 2025. With rising medical expenses and gaps in Original Medicare, it’s one of the few options that offer true peace of mind.

If you value choice, stability, and cost predictability, don’t overlook what Medigap has to offer. For personalized guidance on what plan suits you best—or to review your current coverage—speak with a licensed agent listed on this website.