Medigap Plan Comparison Calculator

Medigap plans are standardized by the federal government, meaning a Plan G from one company offers the exact same basic benefits as a Plan G from another; only the price differs. This standardization makes it easier to compare options. The chart below outlines the benefits of the most common plans available to new Medicare enrollees.

Note: Plan F, the most comprehensive plan, is only available to individuals who were eligible for Medicare before January 1, 2020. If you are newly eligible, Plan G is the most similar option.

¹ Plan N pays 100% of Part B coinsurance, but requires a copayment of up to $20 for some office visits and up to $50 for emergency room visits that don't result in an inpatient admission.

Choosing a plan involves balancing premium costs against potential out-of-pocket expenses. A higher-premium plan like G offers more predictable costs, while a lower-premium plan like N could save money for those with fewer medical needs. This is a critical part of managing your retirement withdrawal strategy.

For most people signing up for Medicare today, the decision boils down to Plan G versus Plan N. They offer robust coverage but have key differences that make them suitable for different people.

Medigap Plan G

Plan G is considered the most comprehensive coverage available to new enrollees. After you pay the annual Medicare Part B deductible, Plan G covers 100% of your remaining Medicare-approved costs, including Part B excess charges.

Who is Plan G best for?

• Peace of Mind Seekers: You want predictable healthcare costs. Once your Part B deductible is met, you shouldn't have any more bills for Medicare-approved services.
• Frequent Doctor Visitors: If you see specialists regularly or have chronic conditions, the lack of copays means you won't be paying out-of-pocket for every visit.
• Those Who Value Choice: Plan G covers Part B excess charges. This means you can see any doctor who accepts Medicare, even if they don't accept "Medicare assignment" (meaning they can charge up to 15% more), without worrying about the extra bill. This is a crucial consideration when planning your retirement income needs.

Medigap Plan N

Plan N offers a trade-off: a lower monthly premium in exchange for some cost-sharing. You are responsible for small copays for certain doctor and emergency room visits. Crucially, Plan N does not cover Part B excess charges.

Who is Plan N best for?

• Budget-Conscious and Healthy Retirees: If you are in good health and don't anticipate many doctor visits, the premium savings can be substantial over the year.
• Strategic Planners: You are willing to check that your doctors accept Medicare assignment to avoid excess charges. This small amount of homework can save you hundreds in premiums.
• Lean FIRE Adherents: For those pursuing a lower-cost early retirement, the premium savings from Plan N can align well with a tight budget, similar to strategies used in the FIRE movement.

The best choice depends entirely on your health, risk tolerance, and budget. The calculator helps quantify this decision by showing how quickly Plan N's copays can erode its premium advantage based on your usage.

While Medigap covers many costs, you're still exposed to certain deductibles and limits. Understanding these thresholds is essential for budgeting. The numbers below are projections for 2026 based on recent trends; official amounts are released by CMS closer to the year.

These numbers are the foundation of your healthcare budget in retirement. If your plan doesn't cover the Part A deductible, a single hospital stay could significantly impact your savings. Factoring these potential costs is vital when determining how long your money will last. For those with a fixed income from a pension, planning for these costs is even more critical. You can use a pension eligibility calculator to understand your fixed income streams.

Choosing the right Medigap plan is only half the battle; buying it at the right time is equally important. Missing your key enrollment window can result in higher premiums or even being denied coverage.

1. Your Medigap Open Enrollment Period (OEP)

This is the most important enrollment period. Your OEP is a six-month window that starts on the first day of the month you are both 65 or older and enrolled in Medicare Part B.

• Why it matters: During this period, insurance companies cannot use medical underwriting. They must sell you any Medigap policy they offer, cannot charge you more because of pre-existing health conditions, and cannot make you wait for coverage to start.
• This is a one-time window. Once it's over, you may lose these "guaranteed issue" rights forever.

2. Guaranteed Issue Rights (Special Enrollment Periods)

In certain situations outside your OEP, you may have a "guaranteed issue right" to buy a Medigap policy. These situations are specific and can include:

• You have a Medicare Advantage plan, and your plan is leaving Medicare or stops giving care in your area.
• You lose employer group health coverage.
• You move out of your Medigap plan's service area.

If you don't have a guaranteed issue right and apply outside your OEP, insurers can require a health screening. They can legally charge you a higher premium or deny coverage altogether based on your health history. This is why planning your enrollment is a key part of achieving your retirement goal. It's as important as deciding when to start drawing from your IRA.

The calculator determines the most cost-effective plan by projecting your total annual financial outlay for each option. It combines the fixed cost of premiums with the variable costs of your healthcare usage.

The primary formula for each plan's total cost is:

Annual Total Out-of-Pocket = Annual Premium Cost + Annual Remaining Out-of-Pocket Costs

Where:

• Annual Premium Cost = The Monthly Premium you enter for the plan × 12.
• Annual Remaining Out-of-Pocket Costs = All Medicare cost-sharing (deductibles, coinsurance) that is not covered by your specific Medigap plan, plus any plan-specific copays (like for Plan N).

To determine what Medigap covers versus what you pay, the calculator first estimates your total potential costs without a supplement:

Total Annual Medicare Costs = Part A Costs + Part B Costs + SNF Costs + Foreign Travel Costs

Then, for each specific Medigap plan, it calculates how much of that total is covered:

Medigap Covered Costs = (Part A Deductible × Plan's Coverage %) + (Part B Coinsurance × Plan's Coverage %) + ... and so on for each benefit.

The difference between your Total Annual Medicare Costs and the Medigap Covered Costs becomes your Annual Remaining Out-of-Pocket Costs. Finally, to project long-term affordability, the calculator estimates the lifetime cost:

Total Lifetime Cost = Sum of (Annual Total Out-of-Pocket for Year 1 × Inflation) + (Annual Total Out-of-Pocket for Year 2 × Inflation) + ... for all years until life expectancy.

• Inflation = The rate you enter, used to project how both premiums and medical costs will increase over time.

This year-by-year calculation provides a more realistic long-term comparison than simply looking at today's premium.

What is the difference between Medigap and Medicare Advantage?

Medigap plans are supplemental insurance you buy from a private company to pay for costs that Original Medicare doesn't cover. Medicare Advantage (Part C) is an alternative way to get your Medicare benefits, where a private plan replaces your Original Medicare and often includes drug coverage and other benefits, but typically has network restrictions.

When is the best time to buy a Medigap policy?

The absolute best time is during your 6-month Medigap Open Enrollment Period, which starts when you're 65 and enrolled in Part B. During this window, you have a guaranteed right to buy any plan sold in your state, regardless of your health status.

Is Medigap Plan G better than the old Plan F?

For new enrollees, this is a moot point as Plan F is unavailable. However, the only difference is that Plan F covers the annual Part B deductible, while Plan G does not. Because Plan F premiums are often significantly higher than the Part B deductible itself, many find Plan G to be a better value.

Are Medigap premiums tax-deductible?

Yes, Medigap premiums can be considered a medical expense. If your total medical expenses (including premiums) exceed 7.5% of your adjusted gross income (AGI), you may be able to deduct the amount over that threshold if you itemize deductions.

Can I switch Medigap plans whenever I want?

It depends on your state's laws. In most states, if you are outside your Open Enrollment Period and don't have a guaranteed issue right, you will have to go through medical underwriting to switch plans. This means an insurer can deny your application or charge more based on your health.

Do Medigap plans cover prescription drugs?

No. Medigap policies sold after 2006 are not permitted to include prescription drug coverage. You must enroll in a separate Medicare Part D plan for your prescriptions. You can use a Part D calculator to estimate those costs.

Does my spouse need a separate Medigap policy?

Yes. Medigap policies are individual. Your spouse must choose and purchase their own policy and will have their own Open Enrollment Period based on their 65th birthday and Part B enrollment. Planning for two policies is a key part of a couples' retirement plan.

Now that you understand the key differences between Medigap plans, use the calculator with real premium quotes from your state to get a personalized comparison. Test different healthcare usage scenarios to see how your results change.

For a broader view of your retirement healthcare planning, see the retirement healthcare cost calculator or explore how to budget for long-term care costs. To see how these expenses fit into your overall income plan, use the retirement paycheck calculator.

Last updated: July 2026