If you've started researching Medicare Supplement insurance, commonly known as Medigap, you've probably noticed that plans are identified by letters rather than brand names. Plan A, Plan B, Plan G, Plan N, and so on. This standardized lettering system was established by the federal government to make it easier for consumers to compare coverage across different insurance companies. Regardless of which carrier you choose, a Plan G from one company covers the exact same benefits as a Plan G from another.
That said, the lettering system can still feel overwhelming when you're seeing it for the first time. There are currently ten standardized plan letters available in most states, each covering a different combination of out-of-pocket costs. Understanding what each letter covers, and what it doesn't, is the first step toward making a confident decision about your Medigap coverage.
How Medigap Plans Are Standardized
The standardization of Medigap plans dates back to the early 1990s, when Congress directed the National Association of Insurance Commissioners to create a uniform set of benefit packages. Before standardization, insurance companies could design their own Medigap policies with wildly different terms, making it nearly impossible for consumers to compare options. The lettering system solved that problem by ensuring every plan letter offers an identical set of benefits no matter which carrier sells it.
Today, the available plan letters are A, B, C, D, F, G, K, L, M, and N. Plans C and F are no longer available to people who became newly eligible for Medicare on or after January 1, 2020, due to the MACRA legislation. For those who were eligible before that date, Plans C and F remain an option, though their pricing may increase over time as the risk pool shrinks. The most commonly sold plans today are Plan G and Plan N, which we'll discuss in detail below.
The Most Popular Plan Letters
Plan G is widely considered the gold standard of Medigap coverage for anyone who became Medicare-eligible after 2020. It covers nearly every out-of-pocket cost that Original Medicare leaves behind, including the Part A deductible, Part B coinsurance, skilled nursing facility coinsurance, and foreign travel emergency care. The only cost Plan G does not cover is the annual Part B deductible, which is $283 in 2026. Once you've paid that deductible, Plan G effectively reduces your remaining medical costs to zero for covered services.
For many beneficiaries, Plan G offers the greatest peace of mind. You won't receive surprise bills after a hospital stay, and you won't need to worry about coinsurance adding up during a year with multiple specialist visits or procedures. The trade-off is that Plan G typically carries a higher monthly premium than less comprehensive plans.
Plan N is the most popular alternative to Plan G. It covers most of the same benefits but requires small copayments for certain services, typically up to $20 for office visits and up to $50 for emergency room visits that don't result in an inpatient admission. Plan N also does not cover Part B excess charges, though in practice these are rare because most doctors accept Medicare assignment.
The appeal of Plan N is its lower monthly premium. For beneficiaries who are generally healthy and don't visit the doctor frequently, the savings on premiums can more than offset the occasional copayment. It's a strong option for people who want solid coverage without paying top dollar.
Which Plan Letter Is Right for You?
Choosing the right Medigap plan letter comes down to balancing your tolerance for out-of-pocket costs against your monthly premium budget. If you want the simplest, most predictable coverage and don't mind paying a slightly higher premium, Plan G is the safest choice. You'll pay the Part B deductible once a year and nothing else for covered services. If you prefer a lower premium and don't mind occasional copayments, Plan N offers excellent value.
It's also worth considering your health status, how often you see doctors, and whether you travel internationally. Plans K and L offer lower premiums in exchange for cost-sharing on certain benefits, while Plan D and Plan M fill more niche roles. The best way to determine which letter fits your situation is to sit down with an independent agent who can compare rates from multiple carriers in your area and walk you through the numbers.
Choosing a Medigap plan letter doesn't have to be confusing. The key is understanding what each letter covers and matching it to your healthcare needs and budget. If you'd like a side-by-side comparison tailored to your situation, we're happy to help.
Questions? Call David at (480) 555-0300