Medigap: Your Retirement Health Planning, pt. 2

You’ve worked hard and saved diligently, and before you can enjoy your next chapter, you need to ensure you have healthcare coverage. While Medicare Parts A and B provide essential benefits, they do not cover everything. That’s where Medicare Supplement Insurance, often called Medigap, comes in.

Medigap policies are designed to help fill the “gaps” in your health insurance coverage, including deductibles, copayments, and coinsurance that Medicare doesn’t cover. But choosing the right Medigap policy isn’t a one-size-fits-all decision. Before you enroll, here are some additional key factors to consider:

— Cost vs. Coverage: While the benefits for each lettered plan are standardized, the premiums can vary between insurance companies. This is why shopping around is important. Consider your anticipated healthcare needs and budget. Do you prefer a higher monthly premium for more comprehensive coverage and fewer out-of-pocket surprises (like a Plan G)? Or are you comfortable with a lower premium but willing to pay some copayments or deductibles (like a Plan N)? While premiums can vary significantly by factors including state, age, and insurer pricing models. The average monthly costs for popular plans for a 65-year-old in 2025 range from roughly $112 (Plan N) to $144 (Plan G) based on recent estimates.

— Future Health Needs: It is important to consider your family health history and any current conditions. If you anticipate frequent doctor visits, hospital stays, or specialized care, a more comprehensive Medigap plan might offer greater financial security. Medigap policies are guaranteed renewable, meaning if you pay your premiums, your policy cannot be canceled, regardless of your health status.

— Foreign Travel: Medicare generally doesn’t cover healthcare when you travel globally. Some Medigap plans (including Plan G and Plan N) do offer coverage for foreign travel emergencies, which can be a significant benefit if you plan to travel internationally in retirement.

Choosing a Medigap policy is an important decision in your retirement healthcare planning. Consider these factors, and ask questions.

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