How to Find the Best Medicare Supplement Plan in Minnesota
If you only have Original Medicare, your out-of-pocket costs can rack up. This is because Original Medicare covers only about 80% of medical costs, leaving the last 20% up to you to cover.
For this reason, many people enroll in a Medicare Supplement plan to limit their healthcare costs. Medicare Supplement plans, also known as Medigap plans, stack on top of Original Medicare to provide more comprehensive cost coverage.
Minnesota is one of three states that has a different set of standardized plans than the rest of the US. This means your options are different from other parts of the country. Minnesota Medigap plans include the Basic Plan, the Extended Basic Plan, and Medigap Plans F, K, L, M, and N. In this post, we’ll dive into the details of each of these options and how to find the best one for you.
Key takeaways:
Medicare Supplement plans in Minnesota are standardized differently than the ten plans offered across the US.
Beneficiaries can choose to enroll in a preset plan, or they can add extra benefits to the Basic Plan for additional coverage.
All Medigap plans in Minnesota are community-rated, meaning your monthly premium is not based on your age. This Medigap rating structure is typically the most cost-effective.
What is a Medicare Supplement Plan and how is it different in Minnesota?
Medicare Supplement plans are one of the additional coverage options available to you when you enroll in Original Medicare. The same ten, federally standardized plans are available in most states. These plans are labeled by letters A-N, and every plan of the same letter type is identical.
However, Minnesota, Wisconsin, and Massachusetts regulate Medicare Supplement plans differently. These states offer beneficiaries different options than the rest of the country. We’ll go over the Minnesota Medigap plan options in more detail in the next section.
Medigap plans in Minnesota
Since Minnesota Medicare Supplements don’t follow the same standardization as other states, beneficiaries don’t have the same ten plans to choose from. Instead, you can choose a preset plan or customize the Basic Plan with additional benefits. Both the Basic Plan and Extended Basic Plan include the following “basic benefits”:
Inpatient hospital costs
Medical costs
Blood
Part A hospice and respite cost sharing
Home health services and supplies cost sharing for Parts A & B
Below are more details on the 2024 Medigap plans in Minnesota.
| Medigap Benefit | Basic Plan | Extended Basic Plan |
|---|---|---|
| Basic benefits | ✔ | ✔ |
| Part A: Inpatient hospital deductible | ✘ | ✔ |
| Part A: Skilled nursing facility coinsurance | ✔ (100 days of care) | ✔ (120 days of care) |
| Part B deductible | ✘ | ✔ |
| Foreign travel emergency care | 80% | 80% |
| Outpatient mental health | 50% | 50% |
| Usual and customary fees | ✘ | 80% |
| Medicare-covered preventive care | ✔ | ✔ |
| Physical therapy | 20% | 20% |
| Coverage while in a foreign country | ✘ | 80% |
| State-mandated benefits (diabetic equipment and supplies, routine cancer screenings, reconstructive surgery, and immunizations) | ✔ | ✔ |
Basic Plan with added coverage
You can choose to enroll in a Basic Plan with additional coverage to design a Medigap plan that meets your needs. Insurance companies allow you to add any or all of the following coverage options to your plan:
Part A deductible
Part B deductible (only available for people who turn 65 after January 1, 2020)
Non-Medicare preventative care coverage
Minnesota also offers versions of Medigap plans F, K, L, M, and N. MN.gov’s Medigap comparison chart can help you understand the differences between each plan
Best Medicare Supplement plan in Minnesota
44% of people on Original Medicare are also enrolled in a Medigap plan in Michigan. Which plan is best, and the reasons why, are different for everyone. The Basic Plan has lower premiums, but the Extended Basic Plan provides more coverage. A Basic Plan with one or more added benefits could also provide more balance and be the best option for some.
It can be difficult to feel fully confident about choosing the best Medigap plan, especially with additional benefits and variations of Plans F, K, L, M, and N. One of our licensed Minnesota Medicare agents can help you look at your healthcare needs to find the plan that best fits your health and budget needs.
How much does a Medigap plan cost in Minnesota?
In 2024, Medigap premiums in Minnesota range from $59 a month for a high-deductible Plan F to $665 for the highest-cost Extended Basic Plan. Keep in mind costs can vary depending on any added benefits you might choose to add to a Basic Plan. You can use Medicare’s plan comparison tool to find more information about Medicare Supplement plans in Minnesota.
Medicare Supplement plan pricing structures
Another key difference between Medicare Supplement plans in Minnesota and plans in most other states is the way that plans are priced. In most states, insurance carriers can choose to price their Medigap plans one of three ways: community-rated, issue-age-rated, or attained-age-rated.
In Minnesota, all Medigap plans are community-rated. This means that everyone pays the same monthly premium regardless of age. Your Medigap prices are based on what other people in your area are paying for the plan.
Issue-age-rated and attained-age-rated takes your age into account when pricing premiums for Medigap plans. Community-rated plans are actually the most cost-effective and fairly priced plans since they are priced based on what everyone else pays for a Medigap plan. That’s a great bonus for Minnesota!
However, your price can be affected by personal and economic factors such as:
Where you live in Minnesota
Your gender
Whether or not you smoke tobacco
Plan premiums can also change due to economic factors like inflation.
When to enroll in a Medicare Supplement plan
If you are considering a Medicare Supplement plan, the best time to enroll is during your Medigap Open Enrollment Period, which is the six month window that starts when you sign up for Part B. During your Medigap Open Enrollment, you have a guaranteed issue right. This means that insurance carriers are required to accept your application and cannot ask you questions about your health history.
Choosing the right Medicare Supplement plan can be confusing, especially with Minnesota’s unique options. We recommend working with a licensed Chapter Medicare Advisor who can help you choose the best coverage for you. Our advice is always free and requires no obligation. Give us a call at 855-900-2427 or schedule a chat to get started.