Medicare Supplement (Medigap) Plans in Michigan

Medicare Supplement Plans are private insurance plans that can be added to your Original Medicare coverage. These plans, also called Medigap plans, are optional but they are designed to help you lower the out-of-pocket costs you would normally pay with Original Medicare, like copayments and deductibles.

Anyone who is eligible for Medicare in Michigan can apply for a Medigap plan. While you can add a supplemental plan at any time, the only time you are guaranteed coverage from a Medigap plan is when you first become eligible for Medicare. Your six-month Medicare Supplement Plan open enrollment period begins the first month you are enrolled in Medicare Part B. During this time, you will get the best options for Medigap rates and coverage. If you wait to sign up, you may be denied supplemental coverage because of a pre-existing medical condition, or you could pay more for your policy.

There are 12 different types of Medigap plans, including high-deductible versions of two of these plans. The federal government decides what each plan must cover, but each insurance company has some room when it comes to setting individual plans and prices.

All Michigan Medigap plans will cover:

• Medicare Part A coinsurance for hospital and hospice care
• Medicare Part B coinsurance and copayments
• Blood needed for medical procedures (first 3 pints in a year)

Some Michigan Medigap plans will also cover:

• Part A coinsurance for skilled nursing care facilities
• Part A deductible
• Part B excess charges
• Up to 80% of foreign travel emergency healthcare

You can see exactly what’s covered in each plan — which are named with letters, like Medigap Plan A or Medigap Plan G — by using this side-by-side comparison chart.

While each of these plans is offered in Michigan, availability and pricing can vary from one insurance company to another. Plans C and F can no longer be sold to people who became eligible for Medicare after January 1, 2020, because of a law that was passed prohibiting Medigap plans from covering Part B deductibles after that date.

Your Michigan Medicare Supplement rates will depend on the plan you choose and the company that is offering that plan. You may also find that things like your age, your overall health and whether you are married can also impact your cost.

Monthly premiums for Medigap policies in Michigan range from about $41 to $1,628 in 2022. For the two high-deductible plans, you can expect to pay a monthly premium of between $32 and $353. Most plans offer a $0 deductible for Part A services, and a $0 to $233 deductible for Part B services.

For high-deductible plans, you will pay around $2,400 for an overall plan deductible, but then pay no separate deductibles for Part A or B coverage. Copayment and coinsurance rates also vary by plan, but can range from $0 to about 10% of the service cost after your deductible is met.

No matter which Medigap plan you choose, Original Medicare pays its share of your healthcare costs first. Your Medigap coverage is applied next, and then you pay whatever out-of-pocket costs are required by your plan. Although you will pay a premium for your Medigap policy, people who have a lot of healthcare needs — and expenses — usually end up paying less in out-of-pocket costs than people without supplemental coverage.

Anyone who is eligible for Original Medicare can buy a supplemental insurance plan. While you are eligible for some plans beyond when you are first able to sign up, you may be denied coverage if you don’t choose a Medigap plan during your initial enrollment period, which is a six-month window that begins the first month you have Medicare Part B.

During this initial enrollment period, insurance companies in Michigan are not allowed to deny you coverage based on pre-existing health conditions, or charge you more for the same plan. After this time, you are not guaranteed coverage, and your rates may increase based on your age and overall health.

If you do decide to add a Medigap plan to your Original Medicare coverage, you should review which plans are offered in Michigan that best fit your health needs and your budget. You can use Medicare’s online plan finder tool to help you locate plans and providers in your zip code, and compare what different plans cost and cover. GoHealth licensed insurance agents can also help you thoroughly compare plans in your area so you can find the right one that will fit your needs.

Medigap plans are no longer able to cover prescription drugs. They could help pay for prescriptions in the past, but anyone who first became eligible for Medicare after January 1, 2006, cannot buy a Medigap plan with prescription drug coverage. If you bought your Medigap plan before that date, you can keep the coverage, but you may lose it if you make changes to your plan.

You can, however, enroll in a Medicare Part D plan. These are private insurance plans that help cover the cost of prescription medications. If you don’t sign up for one of these plans when you are first eligible, you will have to pay a late enrollment penalty based on how long you went without a drug plan.

You can only add a Medigap plan to Original Medicare. Medigap cannot be combined with a Medicare Advantage plan because those plans are already designed to help you get more coverage or lower your out-of-pocket costs.

If you have Medicare Advantage and you want to enroll in a Medigap plan, you will have to drop your Medicare Advantage plan and go back to Original Medicare. If you have a Original Medicare with Medigap coverage and you want to join a Medicare Advantage plan instead, you will have to contact the company you purchased your Medigap policy through and cancel the plan before enrolling in Medicare Advantage.

If you switch from Original Medicare with a Medigap plan to a Medicare Advantage plan and you’re not happy with your choice, you have a one-time, 12-month grace period to switch back to Original Medicare and get your Medigap plan back or buy a different one.