Key Takeaways

1. Medicare Supplement plans, also known as Medigap, help cover costs not included in Original Medicare, such as copayments, coinsurance, and deductibles.

2. Understanding your healthcare needs and budget is essential to selecting the right plan for your retirement years.

Why Medicare Supplement Plans Matter

As a USPS worker or retiree, you’ve spent your career ensuring Americans receive their mail. Now, as you transition into retirement or manage your healthcare, it’s essential to focus on your own benefits. Medicare Supplement plans, often called Medigap, are designed to help fill the gaps in Original Medicare coverage, ensuring that unexpected medical expenses don’t derail your financial security.

What Medicare Covers—And What It Doesn’t

Original Medicare includes Part A (hospital insurance) and Part B (medical insurance). While it provides significant coverage, there are costs it doesn’t fully cover, such as:

• Deductibles for hospital stays or outpatient services

• Coinsurance for extended hospital stays or skilled nursing care

• Copayments for doctor visits or procedures

These out-of-pocket costs can add up quickly, especially for retirees on a fixed income. Medicare Supplement plans step in to help manage these expenses.

Eligibility and Enrollment Basics

To enroll in a Medicare Supplement plan, you must first be enrolled in Medicare Parts A and B. The best time to purchase a Medigap policy is during your six-month Medigap Open Enrollment Period. This period begins the month you turn 65 and are enrolled in Part B. During this window:

• You can buy any Medigap policy available in your state without medical underwriting.

• Insurers cannot charge higher premiums based on preexisting conditions.

If you miss this period, you may face higher costs or limited options, so timing is crucial.

Standardized Plans for Simplicity

Medigap plans are standardized across most states, meaning a Plan G from one company offers the same benefits as a Plan G from another. This makes it easier to compare plans based on costs and customer service rather than benefits.

Here’s a breakdown of what most plans cover:

• Plan A: Covers basic benefits like Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.

• Plan F and Plan G: Popular options that cover a wide range of costs, though Plan F is only available to those eligible before 2020.

• Plan N: Includes coverage for many services but requires copayments for some doctor visits and emergency room visits.

Key Factors to Consider When Choosing a Plan

1. Your Healthcare Needs

Think about the types of care you’ve needed in the past and anticipate future needs. For example:

• Do you frequently visit specialists?

• Are you managing a chronic condition that requires regular treatments?

• Do you expect significant hospital stays or surgeries?

Assessing these factors will help you identify which plan provides the best coverage for your situation.

2. Your Budget

While Medigap plans reduce out-of-pocket expenses, they come with monthly premiums. Consider how much you can afford to spend on healthcare each month. Balancing premiums with the benefits provided by a plan is key.

3. Travel Plans

If you plan to travel frequently or split time between different states, Medigap can provide nationwide coverage. Some plans even include limited coverage for emergency medical care abroad, an important consideration for retirees with a passport handy.

4. Provider Network

Unlike Medicare Advantage plans, Medigap policies don’t require you to stay within a network of providers. You can visit any doctor or hospital that accepts Medicare, offering flexibility in choosing your care providers.

Understanding General Costs in 2025

Here’s what you can expect for some Medicare-related costs in 2025:

• Part A Deductible: $1,676 per benefit period.

• Part B Deductible: $257 annually.

• Coinsurance:

  • Hospital stays: $419 per day for days 61-90 and $838 for lifetime reserve days.

  • Skilled nursing facility care: $209.50 per day for days 21-100.

Medigap plans help cover these expenses, depending on the level of coverage you choose.

How Medigap Works with Other Benefits

FEHB and Medigap

If you’re a USPS retiree with Federal Employees Health Benefits (FEHB), you might wonder whether you need a Medigap plan. While FEHB plans often provide comprehensive coverage, Medigap can still be a valuable addition if you’re seeking to:

• Reduce out-of-pocket costs further

• Gain additional benefits like coverage for foreign travel emergencies

It’s essential to evaluate how your FEHB benefits coordinate with Medicare and whether Medigap enhances your overall coverage.

Coordination with Medicare Advantage Plans

Medigap cannot be used with Medicare Advantage (Part C). If you’re enrolled in a Medicare Advantage plan, you cannot purchase a Medigap policy. If you plan to switch back to Original Medicare, you may then consider a Medigap plan.

Tips for Comparing Plans

Research Costs

Although Medigap plans are standardized, premiums can vary widely between insurers. Compare costs for the same plan type in your area to ensure you’re getting the best value.

Check Financial Ratings

Look for insurers with strong financial stability and positive customer reviews. This ensures reliability in claim payments and customer support.

Know Your Rights

Medigap plans come with protections, such as guaranteed renewability. This means your policy cannot be canceled as long as you pay your premiums, giving you peace of mind.

Common Pitfalls to Avoid

• Delaying Enrollment: Missing your Medigap Open Enrollment Period can lead to higher premiums or denial of coverage.

• Not Considering All Costs: Some people focus solely on premiums without accounting for out-of-pocket costs.

• Assuming One Size Fits All: Your healthcare needs may differ from your peers, so choose a plan tailored to your situation.

Making Your Decision

Choosing the right Medicare Supplement plan requires careful consideration of your health, budget, and future plans. Start by understanding what Original Medicare does and doesn’t cover, then identify the Medigap plan that aligns with your needs. Take advantage of your Medigap Open Enrollment Period to secure the most options at the best prices.

Making Medicare Work for You

By selecting the right Medicare Supplement plan, you’re taking an important step toward protecting your health and financial well-being in retirement. USPS retirees like you deserve peace of mind, knowing your healthcare needs are covered.