Original Medicare provides essential health insurance for many seniors, but it doesn’t cover all your healthcare costs. Medicare Supplement(also called Medigap) plans can help by paying for many of the costs that Original Medicare doesn’t cover. 

In New Jersey, there are ten Medigap plans to choose from. Plan G and Plan N are the most popular and often considered “the best” because they provide the best value. But to find the best Supplement plan for you, you’ll need to consider factors like your finances, lifestyle, and health status. In this post, we’ll walk you through the different Medigap plans and how to choose the best one for your needs.

Key takeaways:

  • In New Jersey, there are ten types of Medigap plans. Plans F and G also have a high-deductible option.

  • Generally, Plan G and Plan N are considered the best since they offer the most coverage at a reasonable price.

  • The same type of Medigap plan (for example, every Plan G) offers the same coverage, but costs vary based on personal factors, pricing structures, and insurance carriers.

Comparing the ten different Medicare Supplement plans

New Jersey offers ten different Medicare Supplement plans, each labeled with a letter from A to N. Each plan covers a different set of costs or percentage of costs. While different plan types vary, all plans of the same type are identical. That means that a Medigap Plan K from one insurance carrier is the exact same as a Plan K from another carrier, even if the pricing is different.

Our Medigap comparison chart can help you understand the differences between each plan. 

Note that Plans F and C are unavailable for Medicare beneficiaries who turn 65 after January 1, 2020.

While plans of the same type will have the same coverage, your monthly premium will depend on a variety of factors. We’ll discuss how plans are priced later on. 

The “best” Medicare Supplement plans in New Jersey

Of the ten Medigap plans, Plan G and Plan N are considered the “best” plans because they cover a lot of costs at a reasonable price. With a Plan G, you’ll owe nothing for Medicare-covered services once you’ve met your annual Part B deductible. Plan N provides similar coverage. The only difference is that it doesn’t cover Part B excess charges. The additional coverage for costs can really add up, and these plans save many Americans thousands of dollars on healthcare!

While these plans are considered the best, the right Medigap plan for you depends on your unique needs. When looking through plans, you’ll need to consider plan availability in addition to your medical needs, recurring health expenses, budget, and lifestyle. Chatting with a licensed Medicare Advisor can be useful when comparing options, so you can determine which plan works best for your unique situation.

How much do Medicare Supplement plans cost in New Jersey?

In 2024, Medigap premiums in New Jersey range from $47 a month for a high-deductible Plan G to $612 for the highest-cost Plan B (and $6,212 for the highest-cost Plan F if you qualify*). You can use Medicare’s plan comparison tool to find more information about Medicare Supplement plans in New Jersey.

*Why does the Plan F premium get so high? It’s complicated, but because it’s only available to an older part of the Medicare population, the pool of those insured is generally sicker. Some policies need to charge higher premiums to afford higher healthcare costs.

Everyone pays a different price for a Medicare Supplement plan. What you pay for your Medigap premium could depend on a few personal and economic factors. 

Personal factors that affect your premium:

  • Your age (applicable with some pricing structures)

  • Your gender

  • Where you live

  • Whether or not you smoke

  • Whether or not you live with someone who is also Medicare eligible (some plans offer household discounts if more than one resident is on Medicare)

Economic factors that affect your premium:

  • Which insurance carrier’s policy you choose

  • Your policy’s pricing structure

  • Economic factors like inflation

How insurance companies price Medigap plans 

Medigap plans are provided by private insurance companies, which set the price for each policy. Your plan can be community-rated, issue-age-rated, or attained-age rated depending on which pricing structure your insurance provider uses.

  • Community-rated: Everyone pays the same monthly premium. Age doesn’t impact how much you pay, and your premium doesn’t increase as you get older.

  • Issue-age-rated: Your monthly premium is based on your age when you were issued your Medicare Supplement plan, but it doesn’t increase as you age. These plans have lower premiums if you sign up at a younger age.

  • Attained-age-rated: Your monthly premium is based on your current age, so it increases as you get older. These plans have less expensive premiums initially if you are a younger enrollee and then continue to increase as you age.

Signing up for the best Medicare Supplement plan for you in New Jersey

The best time to enroll in a Medicare Supplement plan is during your Medigap Open Enrollment Period. This is the best time to enroll because insurance companies can’t ask you about your health history, charge you a higher premium based on your age, or deny your application. Outside of this window, carriers may require medical underwriting and can deny your application or assign a higher premium based on your health history.

Understanding, comparing, and enrolling in the right Medicare insurance plan can feel overwhelming. If you have any questions about New Jersey Medicare options or need help weighing your options, one of our licensed New Jersey Advisors can help! Call us at 855-900-2427 or schedule a chat.

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