As we get older, we want to ensure that we have consistent, reliable, and comprehensive health coverage. That’s why many people on Medicare choose to enroll in a Medicare Supplement plan. Medicare Supplement plans, aka Medigap plans, are additional coverage options for those looking to reduce their out-of-pocket healthcare costs. 

Medigap plans are an important part of health insurance for the nearly 1.3 million Medicare recipients in Tennessee. In this guide, we’ll cover which plans are available in Tennessee and how to find the right plan for you.

Key takeaways:

  • Tennessee residents can choose from ten Medigap plans. The most popular plans for those new to Medicare are Plans G and N

  • Medigap plans are federally standardized, so all plans of the same type (for example, every Plan G) has identical coverage.

  • The cost of your specific Medicare Supplement plan mainly depends on personal factors and each policy’s pricing methods. 

  • Learn more about Medicare in Tennessee in our complete guide.

What is a Medicare Supplement plan?

Original Medicare only covers about 80% of the cost of covered healthcare services. Your 20% coinsurance (paid out of pocket), along with no out-of-pocket maximums, could leave you with catastrophic medical bills. That’s why many beneficiaries choose to couple Original Medicare with a Medicare Supplement plan. 

Medigap plans are designed to fill the gaps left by Original Medicare. These plans help pay for certain copayments, coinsurance, and deductibles. Medicare Supplement plans are standardized across the US, meaning a Medigap Plan G in Tennessee offers the same benefits as a Plan G in every other state. However, premiums can vary depending on the provider, your location, and your health status.

Which Medicare Supplement plans are available in Tennessee? 

There are ten Medigap plans available to residents. Every Medigap plan is labeled with a letter from A through N, and each letter corresponds with a different level of coverage. Plan C and Plan F are only available to people who turned 65 prior to January 1, 2020. 

As mentioned previously, regardless of your state or insurance carrier, all plans of the same letter provide identical coverage. To see the differences between each plan, take a look at our Medigap comparison chart

What is the best Medicare Supplement plan in Tennessee?

Plans F, G, and N are the most popular Medigap plans in Tennessee, making up about 87% of all Medigap enrollments in the state. Those who are new to Medicare like Plan G because it provides comprehensive coverage at a reasonable cost. Beneficiaries especially like that Medicare Supplement Plan G covers all of your out-of-pocket costs once you meet the Part B deductible.

Plan N is the same as Plan G, except it doesn’t cover Part B excess charges. Keep in mind that you are unable to sign up for a plan that covers the Part B deductible if you turned 65 after January 1, 2020.

While it’s important to factor in a plan’s popularity and why beneficiaries like it, there are other things to consider before committing to a plan. Your unique lifestyle, medical needs, and financial priorities could mean a different plan is the right one for you. One of our Medicare Supplement plan Advisors can help you compare your options by understanding your lifestyle and priorities.

How much do Medicare Supplement plans cost in Tennessee?

The premium is the only difference between policies of the same letter. Insurance carriers might charge different amounts based on personal factors including your age, gender, location, and tobacco use. For example, monthly premiums are generally higher for people who are older, men, and tobacco users, because carriers assume these members will require more expensive care. 

The time in which you enroll can also determine the cost of your monthly premium. The best time to enroll in a Medicare Supplement plan is during your Medigap Open Enrollment Period. If you enroll outside of Medigap Open Enrollment, you’ll likely have to go through a medical insurance underwriting. Based on your answers during medical underwriting, you could face more expensive premiums or your application could be denied. 

The price of your Medigap plan also depends on factors outside of your control. For example:

  • Some insurance companies offer discounts if you live with someone who is also Medicare eligible.

  • Inflation and other economic shifts could affect your Medigap premiums.

  • Your policy’s pricing structure determines how much you have to pay for premiums.

Medicare’s plan comparison tool can show you your coverage options and the prices of Medigap plans available in Tennessee. You can also contact a Chapter Medicare Advisor at 855-900-2427 to get a more detailed quote for how much you might need to pay for a Medicare Supplement plan. 

Medigap plan pricing structures

Insurance carriers can use one of three methods to price their Medigap plans. Plans can either be community rated, issue age rated, or attained age rated. 

Some states require insurers to use issue-age or community-rated structures to price their plans. Tennessee does not have any laws mandating which pricing structure insurance carriers should use, so it’s referred to as an Attained Age state. That’s because most of the policies in Tennessee are priced using the attained-age-rated pricing structure.

With attained-age-rated plans, your premium is based on your age. It will be lower when you first enroll in a plan, but will increase every year as you age. 

Enrolling in the best Medicare Supplement plan for you in TN

Finding the best Medicare Supplement policy in Tennessee requires careful consideration of your healthcare needs, budget, and lifestyle. We recommend working with a licensed Chapter Medicare Advisor who can take the time to help you rank your priorities and compare your options. That way, you can be confident in your Medicare decisions and secure a plan that offers you peace of mind. Our advice is always free and requires no obligation. Give us a call at 855-900-2427 or schedule a chat to get started. Our Tennessee Medicare Advisors are here to help you find the best Medigap plan for you.

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