Best Medicare Supplement Plans for Low-Income Seniors

If you are a low-income Medicare beneficiary seeking a Medicare Supplement plan, you have several options to choose from.

  • Plan N:
    • Best value plan
    • Requires copays for some services
    • Monthly premium:  $100 to $200
  • Plan K:
    • Lower monthly premium
    • Higher out-of-pocket limit
    • Monthly premium:  $70 to $100
  • High Deductible G:
    • Lowest monthly premium
    • $2,800 annual deductible
    • Monthly premium:  $65 to $100

While these plans offer basic coverage, they may have higher out-of-pocket expenses. A different option is to explore the availability of Medicaid and Medicare savings programs, which can provide additional financial assistance for low-income individuals.

Another alternative is a Medicare Advantage plan, also known as Part C, which can be more affordable, but you may need to choose from certain network providers for healthcare.

What Are the Most Affordable Medigap Plans?

Medigap Plan N

Medigap Plan N is a cost-effective choice for low-income seniors. This plan includes most of the same benefits as Plan G but requires a copayment for some services. Specifically, you may have to pay up to $20 for office visits and up to $50 for emergency room visits that don’t result in an inpatient admission.

Medigap High Deductible Plan G

Medigap High Deductible Plan G is a more affordable variant of the standard Plan G. While it offers the same benefits as standard Plan G, it only begins to pay out after you’ve met an annual deductible ($2,800 in 2024). This means you will pay out-of-pocket until this deductible is met.

This plan provides the lowest monthly premiums and might appeal to healthy seniors who don’t anticipate needing frequent medical care.

Medigap Plan K

Medigap Plan K is a cost-sharing plan, meaning that beneficiaries will be responsible for paying a portion of the costs. Specifically, Plan K covers 50% of the costs for several services, including the Part A deductible and hospice care coinsurance, Part B coinsurance, and skilled nursing facility care coinsurance.

However, once you reach the out-of-pocket yearly limit ($7,060 in 2024), Plan K covers 100% of covered services for the rest of the calendar year. This plan provides a measure of financial predictability.

Medigap Plan L

Medigap Plan L provides a slightly higher coverage level than Plan K while still being budget-friendly. This plan covers 75% of costs, including the Medicare Part A deductible, hospice care coinsurance or copayment, skilled nursing facility care coinsurance, and three pints of blood.

Like Plan K, once you reach the out-of-pocket yearly limit ($3,530 in 2024), Plan L covers 100% of covered services for the rest of the calendar year.

How Much Do These Medigap Plans Cost?

We’ve created a chart displaying the monthly costs of Medigap’s most affordable plans for various age groups:

AgePlan NPlan KPlan LHigh Deductible G
65 (f)$127.31$75.30$139.80$67.05
65 (m)$140.67$75.30$139.80$77.10
68 (f)$136.10$81.60$151.60$69.96
70 (m)$158.28$86.70$161.30$83.42
74 (f)$157.42$92.00$170.90$80.83
75 (m)$181.13$99.80$185.40$94.58
Quotes are the average monthly rate for a male or female nonsmoker living in FL zip code 32506.

The costs of these plans can vary widely based on factors such as the plan provider, location, gender, tobacco status, and age. Consult with a Medicare expert or conduct thorough research to understand your personalized premium.

  • Important to note:
    • Medigap plans do not cover prescription drugs. If you require prescription drug coverage, you will need to enroll in a separate Part D drug plan.

What Are the Best Medigap Companies?

Based on our research, we have identified the following Medigap providers that offer the most competitive rates:

  • Up to 25% premium discounts
  • Healthy Rewards program
  • Dental, vision, and hearing policy bundle options

Our 2024 Cigna Medicare Supplement Insurance Review

  • Vision and hearing coverage discounts
  • Access to the Mutually Well program
  • High customer satisfaction ratings

Our 2024 Mutual of Omaha Medicare Supplement Insurance Review

  • Up to 7% household premium discount
  • Extra $2 discount per month for applicable monthly EBT payments
  • Dental bundle options

Our 2024 Aflac Medicare Supplement Insurance Review

  • Low annual rate increases
  • Up to 7% household premium discount
  • Additional dental and vision policies with discount cards and free vision exams

Our 2024 Aetna Medicare Supplement Insurance Review

  • Lower premiums compared to many other providers
  • Up to 7% household premium discount
  • Guaranteed renewable Medigap plans

Our 2024 ACE Medicare Supplement Insurance Review

The most suitable Medicare Supplement company varies according to the particular plan letter you’re interested in. For instance, one carrier might offer a more affordable Plan N, while another company may have lower rates for Plan G.

Each company has unique benefits and drawbacks based on its different plan levels.

Tips for Choosing a Medigap Plan

When on a tight budget, here are some tips for selecting the right Medigap plan:

  • Assess your healthcare needs: Review your medical history and consider future requirements. This will help determine your top priority benefits.
  • Compare prices: Premiums can vary widely, even for the same plan. Explore quotes from multiple insurance companies to ensure you get the best rate.
  • Check for extra perks: Some insurers may offer additional benefits like vision, dental, hearing, or wellness program discounts.
  • Consider future coverage: A lower premium plan may not be cost-effective long-term. Consider rate increases with age and plan switch options if your health changes.
  • Consult with a professional: A licensed insurance agent can explain your options and guide you through enrollment.

Choose a plan that offers the coverage you need at a price you can afford, now and in the future.

Medicaid and MSPs

Medicaid and the Medicare Savings Program (MSP) may further support low-income seniors. Medicaid can provide coverage for additional services not covered by Medicare, such as long-term care and prescription drugs, while MSPs can help pay for Medicare premiums, deductibles, and copays. 

It’s important to understand that Medicaid cannot be used to pay for Medigap premiums. Medigap is a supplementary insurance designed to cover costs that Original Medicare does not cover, such as deductibles, coinsurance, and copayments.

However, if you are eligible for both Medicaid and Medicare, Medicaid may cover those out-of-pocket expenses, potentially eliminating the need for a Medigap plan.

Bottom Line

Don’t let low income discourage you from accessing the most comprehensive healthcare coverage available. With a wide range of Medigap plans, you can find one that fits your budget and aligns with your healthcare needs.

Additionally, it’s worth exploring the availability of Medicaid and Medicare Savings Programs, which can provide financial assistance and support.

Our team of experts is here to help you navigate all the available options and guide you toward finding the best plan.

Sources: Medigap Plans Medicaid Basics | MSPs Out-Of-Pocket Limits

Frequently Asked Questions

Mark Prip

Since 2003, Mark Prip has been leading  Policy Guide, Inc., providing knowledgeable information about Medicare, life insurance, and dental coverage to clients in over forty states. With his unparalleled hands-on experience aiding countless Medicare beneficiaries in selecting an appropriate health plan, he is a prime example amongst other competitors for expertise and assistance. Mark has held his Florida Health & Life Insurance License (E051889) since 2003. View his license profile on the Florida Department of Insurance website.