Life and Health Insurance · Accident and Health Insurance · 6 min read
Medicare Supplement Choices
- Identify eligibility criteria, core benefits, and standardization rules for Medicare Supplement (Medigap) plans.
- Compare coverage differences across major standardized plans, including cost-sharing items, Part B excess charges, and Medicare Select rules.
- Explain enrollment rights, consumer protection mandates, and producer compliance requirements for Medigap sales and replacements.
Medigap Fundamentals and Standardized Plan Designs
Medicare Supplement insurance is private health insurance designed to cover cost-sharing gaps in Original Medicare. These policies are commonly referred to as Medigap policies. To purchase a Medicare Supplement policy, an individual must be enrolled in both Medicare Part A and Medicare Part B. Medigap policies only work alongside Original Medicare. They do not provide benefits alongside a Medicare Advantage plan, and they cannot duplicate benefits that are already paid or provided by Medicare.
Federal rules standardize most Medigap policies and identify their benefit packages by plan letters, such as Plan A and Plan G. Standardized Medigap plans with the same letter designation must offer identical basic benefits regardless of the insurance company selling them. However, premiums for identical standardized Medigap plans can vary significantly among different insurance companies.
State and federal market rules govern which plans an insurer must offer. In states that use the standard lettered Medigap plans, an insurer that sells Medigap must offer Plan A; Massachusetts, Minnesota, and Wisconsin use different standardization rules. In states that use the standard lettered plans, an insurer that offers any plan besides Plan A to people newly eligible for Medicare on or after January 1, 2020, must also offer Plan D or Plan G.
For example, an individual named Robert approaches two competing insurers to shop for Plan G. Both insurers must provide the exact same coverage under Plan G because benefits are standardized by federal law. However, Robert finds that one insurer charges a noticeably higher premium than the other for that identical package of benefits.
Common mistakes
- Thinking Medicare Supplement policies can be used alongside Medicare Advantage plans, when Medigap can only work with Original Medicare.
- Believing that an insurer can cancel a guaranteed renewable Medigap policy because the policyholder develops severe health problems; nonpayment or fraud or material misrepresentation can permit cancellation, and insurer bankruptcy or insolvency can also end coverage.
- Assuming Plan F can be sold to individuals newly eligible for Medicare in 2020 or later, when federal law prohibits plans covering the Part B deductible for those individuals.
- Confusing the 30-day Medigap free-look period with the shorter 10-day period common to standard disability or individual health policies.
Key points
- Medicare Supplement (Medigap) policies are sold by private insurers to pay cost-sharing gaps in Original Medicare, requiring enrollment in both Part A and Part B.
- Most states use standardized lettered Medigap plans, with Plan A providing the core benefits; Massachusetts, Minnesota, and Wisconsin use different plan designs and offering rules.
- Plan F and Plan C cover the Part B deductible ($283 in 2026) but are prohibited for individuals newly eligible for Medicare on or after January 1, 2020.
- Plan G covers all benefits included in Plan F except the annual Part B deductible, and both Plan F and Plan G cover 100 percent of Part B excess charges.
- Medicare Select uses provider networks for non-emergency care, offering potentially lower premiums in exchange for reduced policy coverage outside the network.
- The federal Medigap Open Enrollment Period lasts six months, starting the first day of the month an applicant is both 65 or older and enrolled in Part B.
- Medigap policies must be guaranteed renewable, include a 30-day free-look period, and not duplicate Medicare benefits; insurers must deliver an outline of coverage and a Medicare buyer's guide under applicable timing rules, which can differ for direct-response sales.
Practice this section
Explained Accident and Health Insurance questions, no account needed. Accident and Health Insurance practice test
The full lesson continues with 3 more sections with exam tips, audio in English and Spanish, 5 Check yourself questions and 20 flashcards.
- 1 month
$53.99$26.99 - 3 months
$158.99$79.49 - Lifetime
$323.99$161.99
One payment, no subscription.
See Life and Health plansAlready a member? Log in
Sample lesson: Risk and Insurable Losses in Health Insurance25 practice questions on this exam
Each Life and Health practice test has 25 original questions with the answers explained. No account needed.
Open the Life and Health practice testsOriginal lesson written for Life and Health Insurance practice · updated October 30, 2026. Exam names are trademarks of their owners; tests.global is not affiliated with them.