Learn About AARP Supplemental Insurance Coverage Options

Understanding AARP Supplemental Insurance (Medigap)

AARP offers supplemental insurance plans, commonly called Medigap, that work alongside Original Medicare to help cover costs that Medicare itself does not pay. When you have Original Medicare (Parts A and B), the government program covers a significant portion of your healthcare expenses, but it does not cover everything. Medigap policies are designed to fill those gaps by covering expenses like coinsurance amounts, copayments, and deductibles that you would otherwise pay out of your own pocket.

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Medigap is different from Medicare Advantage (Part C), which is an alternative way to receive your Medicare benefits through a private insurance company. With Medigap, you keep Original Medicare and add a supplemental policy on top of it. This means you can see any doctor or specialist who accepts Medicare, without needing referrals or worrying about network restrictions in most cases.

AARP partners with insurance carriers to offer these supplemental plans under the AARP brand. The plans themselves are standardized by the federal government, which means that a Plan G offered by AARP provides the same basic coverage as a Plan G offered by any other insurance company. What differs between insurance companies is the monthly premium you pay for that plan. AARP-branded Medigap plans may have different pricing and customer service options than plans from other insurers.

The standardized nature of Medigap plans means there are specific plans labeled A through N (and a few others depending on your state). Each plan letter represents a different combination of covered services. For example, one plan might cover your Part B coinsurance, while another might also include coverage for foreign travel emergencies. Understanding which plan covers which services is important when comparing your options.

Practical takeaway: Learn about the difference between Original Medicare plus Medigap and Medicare Advantage before exploring specific plan options. This foundational understanding will help you determine which type of coverage structure might fit your healthcare needs and budget.

The Ten Standard Medigap Plan Types and Their Coverage Differences

The federal government has standardized Medigap plans into distinct categories, each identified by a letter. These plans are available in most states, though a few states have different rules. The ten main plan types are A, B, D, G, K, L, M, N, and two high-deductible versions of G and F (though Plan F is no longer available to people who became Medicare-eligible after January 1, 2020).

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Plan A is the most basic option and covers Medicare Part B coinsurance and copayments, as well as hospital coinsurance and copayments. It does not cover a Medicare deductible or most preventive care costs. Plan B is similar but includes coverage for the Part A hospital deductible. Plans D, G, and N offer broader coverage but come with higher monthly premiums because they cover more services.

Plan G is one of the most popular options currently available. It covers most of the same benefits as the old Plan F (which is no longer available to new Medicare recipients), including the Part B deductible. The main difference between Plan G and Plan F was that Plan G did not cover the Part B deductible, but many people still find Plan G attractive because the monthly premium savings compared to Plan F often outweigh the cost of paying the Part B deductible once per year.

Plans K and L are known as "limited" plans because they cover fewer services but have lower monthly premiums. These plans are designed for people who want some coverage help but are willing to share more costs with Medicare. Plan K covers about 50% of certain costs, while Plan L covers about 75%. As you use these plans, you pay toward an annual out-of-pocket limit, and once you reach that limit, the plan covers 100% of the remaining covered services for the year.

Plan N has gained attention in recent years because it offers good coverage at a moderate price point in many cases. Plan N covers most of the same services as Plan G but has a slightly different structure for Part B copayments and does not cover the Part B excess charges (charges above what Medicare approves). Plan M covers similar services to Plan G but requires you to pay 50% of the Part A deductible.

Practical takeaway: Compare the coverage details of at least three different plan types (such as A, G, and N) and consider both the monthly premium and the potential out-of-pocket costs you might face for healthcare services you regularly use. This comparison will show you whether a lower premium with higher out-of-pocket costs makes sense for your situation, or whether a higher premium with lower costs per visit might be better.

How AARP Medigap Premiums Are Structured and Priced

AARP Medigap plans use different premium-setting methods, and understanding how these work helps you predict how your costs might change over time. Insurance companies can use one of three rating methods: community-rated, age-rated, or issue-age-rated. AARP uses issue-age-rated pricing, which means the rate you start paying is based on your age when you first enroll in the plan. As you get older, your premiums will increase, but you will not be charged higher rates simply because you turned a certain age after already being on the plan.

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With issue-age-rated plans, your premium rises gradually each year as you age, but the pattern is based on the age you were when you started, not your current age. This means that someone who enrolls at age 65 will have a different rate progression than someone who enrolls at age 72, even if they both own the same Plan G. For many people, this pricing method results in lower initial premiums compared to community-rated or age-rated plans, which can make AARP plans attractive at first enrollment.

In addition to age-based increases, insurance companies also raise premiums to account for inflation and rising healthcare costs. These general increases are applied across all policyholders, regardless of age. You will receive notice of any rate increases at least 30 days before they take effect. It is worth noting that rate increases can vary significantly from year to year and may differ between plan types offered by the same company.

When comparing AARP premiums to other insurance companies, remember that the lowest monthly cost is not always the best value. A plan with a lower premium might have higher out-of-pocket costs when you receive healthcare services. Some people pay less overall with a higher premium but lower service costs, while others do better with a lower premium even if it means paying more per doctor visit. Your actual healthcare usage patterns matter significantly.

AARP Medigap plans typically do not require medical underwriting for people who enroll during their open enrollment period (generally the six months after turning 65 and becoming Medicare-eligible). However, if you enroll outside this window, the insurance company may review your medical history before accepting you. This means enrolling during the right time period can prevent surprises about coverage.

Practical takeaway: Request a quote for the same plan from both AARP and at least two other insurers in your state. Write down the current monthly premium for each company and ask about their typical annual increase rates. Calculate what you might pay over the next three to five years with each company to see the total cost picture, not just the current premium.

When to Enroll in AARP Medigap and Timing Considerations

Timing your enrollment in a Medigap plan can affect your costs and coverage options for years to come. There is a specific period called the Medigap open enrollment period during which you have strong protections. This period lasts for six months and starts on the first day of the month in which you turn 65 and are enrolled in Medicare Part B. During this time, you may purchase any Medigap plan sold in your state without medical underwriting, meaning the insurance company cannot charge you more or deny you coverage based on your health conditions.

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If you enroll in a Medigap plan during this open enrollment period, you get what is called a "guaranteed issue" right. This protection is valuable because it means your health history does not matter. Insurance companies must accept you at standard rates. However, if you miss this six-month window, the situation changes significantly. You may still be able to purchase a Medigap plan, but the insurance company can conduct medical underwriting, which means they can deny your application, charge you a higher premium, or exclude coverage for certain conditions you have.

Some people delay enrolling in Medigap because they initially chose Medicare Advantage (Part C). If you later want to switch to Original Medicare and