Finding the Best Medicare Supplement Plans in Maryland
Medicare Supplement plans are an important coverage option for the roughly 916,000 Maryland residents enrolled in Original Medicare. Also called Medigap, these policies offer standardized healthcare benefits that help offset the out-of-pocket costs associated with Original Medicare.
In Maryland, you can choose from 10 Medicare Supplement plans. Medigap Plan F, Plan G, and Plan N are the most popular plans in the state, making up 88% of all Medigap enrollment in Maryland.
While these plans might be the most popular, that doesn’t necessarily make them the right choice for you. Before enrolling, you should consider which plan best fits your medical and financial needs. In this post, we’ll discuss the different Medicare Supplement plans available in Maryland and how to choose the best plan for your needs.
Key takeaways:
Most states offer the same ten Medicare Supplement plans because Medigap is federally standardized.
Every plan of the same type provides identical coverage, but your monthly premium varies based on personal and policy factors.
There are three pricing structures insurance carriers use to price their plans: community rated, issue-age rated, or attained-age-rated.
Take a look at our Maryland Medicare Guide for information on how to enroll, compare coverage options, and save money on insurance plans.
What is a Medicare Supplement plan?
Alone, Original Medicare has coverage gaps that could lead to high healthcare costs. Original Medicare covers only about 80% of healthcare expenses, and it doesn’t have a yearly out-of-pocket limit.
So, if you need frequent or expensive care, you could be on the hook for thousands of dollars. For this reason, beneficiaries should consider Medicare Supplement (commonly called Medigap) plans as an additional coverage option that can be coupled with Original Medicare coverage.
These plans aim to supplement, or fill the gaps, left by Original Medicare (hence the name!). Medigap plans are federally regulated, so your coverage options are generally the same across US states. Massachusetts, Minnesota, and Wisconsin are the only states that have a different set of regulated Medigap plans.
The ten types of Medicare Supplement plans
Medigap plans are standardized by the federal government, and Maryland offers the same ten plans as 46 other states. The ten plans are labeled by the letters A through N (Medigap Plan A, Medigap Plan B, and so on). Each letter represents a different plan type that has its own level of coverage. Meaning, all plans labeled with the same letter will have the exact same coverage, regardless of which insurance carrier is offering it. So you can expect all Medigap Plan Ds to offer identical coverage across states and providers.
Check out our Medigap comparison chart to see what benefits each plan provides.
*Note that Plans F and C are unavailable for Medicare beneficiaries who turn 65 after January 1, 2020.
The best Medicare Supplement plans in Maryland
Medigap Plan F is the most popular plan in Maryland for eligible beneficiaries
For most new Medicare beneficiaries, Medigap Plan G is the most popular plan. Beneficiaries like Plan G because it virtually eliminates out-of-pocket costs. You won’t pay anything out of pocket once you meet your Part B deductible. Plan G also has a reasonable monthly premium, making it the plan that generally provides the most value.
Despite the popularity of certain Medigap plans, you may have other considerations that go into picking the right one. We recommend working with a licensed Medicare Advisor before enrolling in a plan to go over your unique situation and compare options that work best for you.
How much do Medicare Supplement plans cost in Maryland?
Medigap premiums in Maryland range from $32 a month for a high-deductible Plan G to $729 for the highest-cost Plan D. Medicare’s plan comparison tool lists all of the plans available in Maryland along with their premiums.
The main difference between plans of the same type is the cost of your monthly premium, which depends on both personal factors and policy pricing structures. For example, premiums are generally higher for older adults, men, and tobacco users.
Some other factors that may affect your premium include:
Your gender
Where you live
When you enroll
Whether or not you live with someone who is also eligible for Medicare
Economic factors like inflation
Your policy’s pricing structure
When you enroll may also has an impact on your monthly premium. The best time to enroll is during your Medigap Open Enrollment Period because everyone is guaranteed issue during this window. This means you are automatically accepted into the plan of your choice during this time. If you enroll outside of your Medigap Open Enrollment Period, you’ll likely need to go through medical underwriting and insurance carriers can deny your application or charge you more based on your answers to underwriting questions.
Medigap plan pricing structures
Your plan’s pricing structure also plays a big role in how much you pay for Medicare Supplement year after year. There are three structures insurance carriers use when pricing Medigap plans: community-rated, issue-age-rated, or attained-age-rated.
With a community-rated plan, monthly premiums are similar across enrollees because these plans do not use age as a factor when pricing your monthly premium. These policies also tend to be the most cost-effective because costs don’t increase as you age.
With an issue-age-rated plan, your age at the time of enrollment determines your monthly premium. This means your policy will not get more expensive as you get older.
With an attained-age-rated plan, your current age determines the price of your monthly premium. These plans are cost-effective for younger beneficiaries, but your policy will get more expensive with age.
Keep in mind that any plan premium can increase over time due to inflation and other external factors.
Enrolling in the best Medicare Supplement plan for you in MD
Comprehensive and affordable healthcare coverage is critical as we age, and you don’t have to make Medicare decisions alone. A licensed Chapter Medicare Advisor can help you choose the best Medicare coverage for your needs. Give us a call at 855-900-2427 or schedule a chat to get started with personalized, obligation-free advice.