What Is Medigap Plan B? What You Need to Know

Medigap Plan B is a Medicare Supplement Insurance plan that helps cover certain out-of-pocket expenses that remain after Medicare Part A and Part B pay for services. Plan B covers the basic benefits common to all Medigap plans, plus one: the Medicare Part A deductible.

How it works

Medigap plans help pay for the out-of-pocket costs associated with Original Medicare, including copays, coinsurance and deductibles. If you have a Medicare Advantage plan, you can’t also buy a Medigap plan.

There are 10 standardized Medigap plans available in most states (except Massachusetts, Minnesota and Wisconsin, which use different standards). The plans differ in terms of coverage for services, out-of-pocket limits and premium costs.

What Medigap Plan B covers

Here’s what Medigap Plan B covers, according to Medicare.gov:

• Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up.

• Part A deductible.

• Part A hospice care coinsurance or copayment.

• Part B coinsurance or copayment.

• Blood transfusion (first three pints).

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What Medigap Plan B doesn’t cover

Here are the benefits Medigap Plan B doesn’t cover that are included in some other plans:

• Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so).

• Skilled nursing facility care coinsurance.

• Emergency care during travel outside the U.S.

Additionally, all Medigap plans, including Plan B, sold to new Medicare members don’t cover the following:

How much does Medigap Plan B cost?

The government regulates Medigap plans, but you buy your plan from a private health insurance company, which sets the price you pay. Prices vary as a result of factors such as age, location and tobacco use.

In Atlanta, a metro area with average costs for Medigap policies, monthly Medigap Plan B premiums for a 65-year-old female nonsmoker range from $152 to $316.

A $152 Medigap Plan B policy has the same standardized Medicare coverage as one that costs $316. Companies may add on extra perks like discounted gym memberships, but the core Medicare benefits are the same, so go ahead and compare based on price.

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For the smoothest enrollment experience and lowest prices, sign up for a Medigap plan during your Medigap open enrollment period.

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